The availability of alcohol-free beverage alternatives has increased dramatically in recent years, with Denver, the hub for craft brewers, seeing a particular surge in the demand for nonalcoholic beer.
Tucked up in the foothills of the Rocky Mountains, the city has embraced the alcohol-free movement as more and more brewers are starting to provide more inclusive drinks.
Data from food service research and consulting firm Technomic shows that between the fourth quarter of 2022 to the same time in 2023, nonalcoholic alternatives on menus climbed by more than 55%.
Even though Anheuser-Busch introduced O'Doul's in 1990, the market for nonalcoholic beers has expanded dramatically in recent years due mainly to the desire of younger, health-conscious customers, according to Technomic. Additionally, analysts predict that interest will continue to rise. Nonalcoholic beer volumes are predicted to increase by almost 25% between 2022 and 2026, based on data from the alcoholic beverage research business IWSR.
Furthermore, Colorado ranked as the second-highest state in terms of investment in nonalcoholic beverages in 2023, according to data from NielsenIQ, a database on consumer purchasing behavior.
Keith Villa, co-founder and brewmaster of Colorado's Ceria Brewing Company, told CNBC that "people are becoming more and more curious, and since Denver is a city that a lot of people that are outside exercising and staying fit, there are a lot of people who are interested in lowering their alcohol intake and staying healthy." In contemporary situation, an increasing number of individuals are becoming knowledgeable about start grabbing our items, such as our alcohol-free and nonalcoholic beer.
When Villa and his wife Jodi started Ceria in 2018, their primary emphasis was on the market for alcohol-free beer, which they said was "growing every day." Younger customers have found the beer to be particularly enticing, he continued.
According to Villa, there are four methods available for producing alcohol-free and nonalcoholic beer: vacuum distillation, filtering, speciality yeast, or brewing a low-alcohol beer and diluting it with water. Villa claimed that brewers find it challenging to produce nonalcoholic spirits since such procedures are costly and time-consuming.
But according to Villa, more Denver brewers are joining the trend as overall beer consumption continues to fall.
Craft brewers are facing increasing challenges in the market, thus in order to They're starting to sell nonalcoholic beers in an effort to boost revenue for their establishment," he stated. "Beers must be prepared properly, yet there is a market for them. We can ensure that consumers have a wide selection of safe items to choose from as long as we watch out for and support one another. According to food trend researcher Kara Nielsen, the emergence of nonalcoholic beer and spirits fits with Denver's narrative because the city is so focused on beer.
"Denver residents enjoy playing hard and then celebrating," according to Nielsen, a former resident of the city. "Over the past three to four years, a growing number of brewers in Colorado have released very well-crafted nonalcoholic beers. It's now more of an option.
Since its start five years ago, Denver-based brewery Grüvi has made the most of that decision by offering a broad variety of nonalcoholic options. The firm picked Colorado as its headquarters, according to co-founder Niki Sawni, because of the state's citizens' inclination for a better lifestyle and the consequent development potential in the alcohol-free industry.
According to Sawni, his clients are first largely consumers who are health-conscious. However, he claimed that once nonalcoholic and alcohol-free beer gained popularity, it began to draw in more mainstream drinkers. In response, nearly all of the local bars and restaurants quickly began offering zero-proof choices, he claimed.
"I simply realized that there was a gap in the market for non-alcoholic beverage options. Instead of having to choose between sparkling water, pop, or another non-alcoholic beverage that still allowed you to be social," Sawni explained. "Grüvi means joyful and lively, which is why we picked it; five years ago, nonalcoholic goods were the exact reverse of that. Thus, we thought, "Okay, how can we try to popularize something that was so uncool?" In addition, Sawni noted that as his business has prospered, he has noticed a positive tendency among larger, more established alcoholic brewers, who are now providing assistance and cooperation in a “symbiotic relationship” that has avoided creating rivalry.
Denver Beer Co., which started off with only one taproom 13 years ago, is one of those bigger brewers. The firm now has many taprooms around the region and has started adding sparkling hop water, a nonalcoholic substitute, to its menus.
CEO Robert MacEachern stated, "At the end of the day, we're a beer company, but we also understand there's this desire from consumers to have a nonalcoholic product." "This was a natural extension for us to allow people to enjoy our space because we want as many people to enjoy our spaces as possible with our inclusive ethos."
Denver Beer Co. has been able to satisfy the tastes of its clientele while staying loyal to its fundamental character because to the nonalcoholic trend. Per MacEachern, he's Particularly noticeable demand in the nonalcoholic drinks comes from summertime running or biking groups who want something cool to drink while still enjoying the taproom experience.
Even though alcoholic beer will always be the company's core product, hop water has evolved into a "part of who we are," according to MacEachern.
"Craft beer is centered in Denver. We have our roots in that sector. We've been successful in navigating this tsunami of nonalcoholic behavior because people in Denver welcome change and innovation," he added. "All of the craft beer firms will continue to develop their brands and brand equity, not just ourselves. Beer without alcohol starts to become an asset rather than a liability to who we are.
Writing By Esmeralda Versewind
Head Editor & Chief : Kennedy Lucas Patterson
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