The market for "no-low", combination of words "no and low alcohol", is home to nearly 300 brands. Pernod Ricard and Diageo are in the lead and you can find their spirits at Sanzalc !
An evening without a hangover the next day? It's now possible thanks to non-alcoholic spirits, replicating the taste and spirit of classic versions of gin, whisky, rum and cocktails. For a long time, non-alcoholic offers like Pacific, launched in 1982 by Pernod Ricard, were little consumed. The French were not very inclined to abstinence, alcohol remained the most popular.
However, the art of living has evolved over time.
Slowly but surely, the French are consuming less alcohol. According to statistics from the French Observatory on Drugs and Addictive Tendencies (OFDT), the consumption of spirits has decreased by 16% over the last twenty years. Since 2013, Dry January, initiated by the British association Alcohol Change UK, which encourages people to take a break from their alcohol consumption for a month, has made withdrawal - almost - attractive. In addition to populations who must monitor their diet for medical reasons - pregnant and breastfeeding women, people undergoing treatment, etc. - or religious, new enthusiasts, such as athletes who want to watch their diet, young professionals and retirees who want to enjoy an aperitif without suffering the negative consequences, are added to the list.
In the eyes of Simon de Beauregard, director of international marketing at Pernod Ricard, half of buyers of alcoholic beverages in France prefer “no or low alcohol” offers, and alternate between convivial moments with and without alcohol. According to the IWSR institute, this new market is estimated at $10 billion and is experiencing annual growth of 8%. Looking to ride this wave, the group led by Alexandre Ricard became a majority stakeholder in the capital of Ceder's, a distilled drink without alcohol, without sugar and with flavors of gin. In addition to juniper berries, Ceder's is seasoned with coriander, citrus fruits and South African botanicals such as rooibos and buchu. The brand already has great success in around fifteen countries, notably the United States and Canada. At the same time, Pernod Ricard offers a “special abstinent” version of some of its classics such as Suze Tonic Zero.
Another major in search of growth relays, Diageo (Johnnie Walker, Smirnoff, Baileys...) took a majority stake in Seedlip in 2019. This company was founded in 2015 by Ben Branson, a colorful and tattooed character, who created Seedlip Garden 108 - a very British recipe with notes of peas, hay and hops. Carefree, Ben Branson avoids imitations and invents new flavors appreciated in bars and restaurants from New York to Barcelona.
Who will be the winner of the next lottery? no-low ?
More than three hundred brands, some of which are produced entirely in France, such as JNPR, Osco and Ousia, try their fate. The rules of the game attract the daring, who escape the duties that apply to alcoholic beverages as well as the “soda” tax based on the sugar level. In addition, they benefit from a VAT rate of 5.5%, which is the same as for fruit juices, and is much lower than that which applies to liqueurs, for example. And to top it all off: by ignoring sugar and alcohol, the inventors of no-low are not affected by the inflation which hits these two ingredients. Consequently, these drinks generate margins of around 40%. If they succeed, the pioneers will be able to sell their small business to a big name in wines and spirits.
The risk potential is limited, as the initial capital may be modest. Stella Bouquet and Guillaume Vilain, co-founders of Ousia non-alcoholic drinks, produce the drinks in their Parisian laboratory. “We combine infusions and plant extracts that deceive the taste buds. For example, juniper berries provide a sensation equivalent to the taste of alcohol. To be sure to respect tastes, we validate our recipes with bartenders and consumers,” adds Guillaume Vilain. Thanks to a successful launch in September, the duo is in the process of finalizing an initial fundraising of 500,000 euros from funds and individual investors. The number one objective is to communicate in order to convince bars, restaurants, wine merchants and even supermarkets to offer an alternative. Meanwhile, the market mainly develops on the Internet, as the Lille website Sanzalc which selects spirits, beers and wine without the unpleasant side effects.
This column is rewritten following this article by the Express.
