Carb-Conscious Consumers Forever Changed the Drinking Scene

The beverage category of today doesn’t remotely resemble the beverage category of five years ago—and it’s going to be unrecognizable in just five more years. That’s not because of some new technology or scientific discovery. Rather, it’s because some bold brands out there have decided to empower consumers to be healthier, truer versions of themselves. The ongoing beverage category upheaval, particularly in the growing category of low- to no-alcohol alternatives, represents a perfect microcosm of what can happen when purpose-driven brands take the lead in an otherwise stagnant category. Let’s take a look at how the narrative has suddenly flipped in the beverage and brewing category and why more brands should be embracing the vast diversity in consumer needs and preferences in their own categories. How 2021 Became the Breakout Year for Sober October Rewriting the story for nonalcoholic drinks Let’s be honest: If you ordered a nonalcoholic beer at a bar just five years ago, you could probably expect to receive a pitying look—if not from the bartender, then from your drinking companions. The reasons were twofold: Your choice of beverage was assumed to be directly tied to some sort of perceived weakness or inability to moderate, and the drink you were about to consume most likely tasted like a watered down, metallic imitation of the beer everyone else was enjoying. But things have changed. The groundwork was laid years back by product rollouts like Michelob Ultra and Miller 64, both of which were targeted to the calorie- and carb-conscious consumer at a time when cutting carbs was heavily touted as the surest way to lose weight. These lower-alcohol beers did little to remove the stigma from fully nonalcoholic drinks, but they made an important connection in consumers’ minds, one that acknowledged alcoholic drinks as being somewhat challenging (if not downright contradictory) to a healthy, active lifestyle. From this notion, additional products rose to popularity—most notably, hard seltzer, which continues to play a prominent role in the alcoholic beverage sector. But it took bold new purpose-driven brands to bring on the true revolution and flip the script. Consider Athletic Brewing, a craft nonalcoholic beermaker founded in 2018 that recently raised a $50 million Series C funding round. This company, born of the notion that “you shouldn't have to sacrifice your ability to be healthy, active and at your best to enjoy great beer,” grew nearly 500% year over year in 2020 for the second year in a row. And the company isn’t stopping at its products. It’s redefining the social drinking scene with unique experiential concepts like its gym-taproom combo pop-up in Austin, Texas. The industry has taken notice, too. More and more craft nonalcoholic brewers are hitting the scene, established craft breweries are adding full-bodied nonalcoholic options to their repertoires, and even the big boys—including Anheuser-Busch and Sam Adams—are proudly rolling out nonalcoholic beverages. Looking down the road five years, things could potentially get even more interesting in the space. Considering the progression of cannabis legalization (and potentially federal deregulation), we could see large beverage companies rolling out cannabis- and CBD-infused drinks. The shift into the cannabis space seems a likely extension of this larger health and wellness push, particularly as consumers seek new ways to consume cannabis and CBD in a healthy format. More narratives to flip Let’s be clear: This isn’t just a burgeoning product category. It’s a cultural revolution, one that’s built on consumer empowerment and rewriting the story around people’s personal decisions to not drink alcohol. It’s about brands stepping forward to change the narrative from a social decision that prompts a pitying look to one that prompts a pat on the back, a “Good for you!” or a request to try a sip of someone's intriguing new drink option. Brands in all categories should take note. Purpose-driven brands today have the opportunity to build a better world and society. That starts by identifying the stories that need to be rewritten: the ones that hold progress back, keep people down and sow seeds of division and shame instead of inclusion and empowerment. Recess, a CBD Beverage, Created a ‘Guide to Re-entering Society’

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How the Carb-Conscious Consumer Forever Changed the Drinking Scene

The brewing upheaval in the beverage category offers a lesson to all brands

Greg Ricciardi

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Greg Ricciardi