Dry January is a health initiative many choose to participate in after saturating their system with higher-than-usual amounts of alcohol during the holiday season. It is a way to cleanse the body by abstaining from alcohol consumption during the entire first month of the year.
However, many former alcohol consumers seem to have willingly extended this initiative past the first month of the year, turning a temporary lifestyle change into a permanent routine.
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Over the past few years, the growing sober-curious community's demand for non-alcoholic beverages has increased more than ever, leading various restaurants and bars to add zero-proof cocktails and drink alternatives.
According to a study by the Food Institute, approximately 67% of people surveyed want to reduce their alcohol consumption due to health-related factors, while 41% said they have reduced their alcohol consumption because they seek a lifestyle change.
However, the complete removal of all alcoholic beverages can be a drastic change for some, which is why many have devised alternative ways to feed their urges.
According to statistics by Sociallyin, 52% of people are feeding their alcohol cutbacks by opting for non-alcoholic alternatives.
The U.S. is a very profitable market for the non-alcoholic beverage industry, ranking among the top countries worldwide.
As of 2023, the non-alcoholic beverage market in the U.S. is worth over $1.8 billion, with an average 25% yearly growth from 2019 to 2023 for the low/non-alcohol sector.
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LVMH announces a new investment to regain its luxury leader title
On Oct. 2, the producer of Moët & Chandon, LVMH, announced it had made a minority investment in the luxury non-alcoholic wine maker French Bloom.
Created in 2021, French Bloom is a zero-proof sparkling French beverage maker of organic Chardonnay and Pinot Noir wines sold in over 30 countries, including the US, Canada, the UK, Japan, Australia, and the UAE.
According to a study by the IWSR, the non-alcoholic wine market in the U.S. increased by 18% in 2023 and is projected to grow by double digits yearly. This growth is largely driven by higher-price brands, which account for 87% of that increase.
"This investment aligns with Moët Hennessy's key strategic initiatives, demonstrating our commitment to offering high-quality, alcohol-free choices to consumers who moderate their alcohol intake. We are confident that our expertise in Wines and Spirits, combined with French Bloom team's exceptional innovation and visionary leadership, will enable us to craft the future of this category," said LVMH CEO Philippe Schaus.
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Although it's a drastic change from LVMH's usual wine and spirits catalog, this new minority acquisition, with financials that have yet to be disclosed, could be the change the company desperately needs to reverse dwindling sales.
Luxury retailers struggle financially amid plummeting sales
With inflation and customers' more conscious spending habits, it is no news that the luxury retail sector has been struggling lately.
This luxury slum has led many high-end retailers to devise new strategies to survive amid crumbling financial results.
Related: Popular beer company enters the sober market
French company Louis Vuitton Moët Hennessy, commonly known as LVMH (LVMHF) , is the world's leading luxury group. It owns over 75 of the most renowned high-end brands in six different retail divisions.
Although a leader in its sector, LVMH has also fallen victim to the luxury slump, nosediving to negative numbers in multiple areas of its business.
According to LVMH's first-half earnings report for 2024, the company's total revenues declined by 1%, with its wine and spirits sector down 12% compared to the year prior, the biggest decrease generated out of all its luxury Maisons.
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