The younger generations in the U.S., particularly Millenials and Gen Z, are becoming more health-conscious, and this trend has prompted many to experiment by giving the sober scene a try.
Over the past few years, the development of sober bars and the emergence of more pre-made mocktail beverages due to their high demand have increased, making the inclusion of zero-proof cocktails on restaurant and bar menus even more common.
Related: Coca-Cola partners with liquor brand to create historical canned cocktail
Consumption of non-alcoholic beverages in the U.S. has soared by nearly 70% over the past year.
According to statistics by Sociallyin, 46% of drinkers actively try to reduce alcohol consumption, and 52% are feeding this cutback on alcohol by opting for non-alcoholic alternatives.
This increase in zero-proof drink alternatives has proven profitable for the beverage market.
According to a GVR study, the global ready-to-drink mocktail market was valued at $8.26 billion in 2023 and is expected to grow by 5.7% annually from 2024 to 2030.
In North America alone, pre-made mocktails had a revenue share of approximately 27.4% in 2023, per the previous study.
Many beverage companies are not missing the chance to get in on the fun because of how lucrative this sober drinks market has grown to be
Molson Coors develops a new strategy to succeed in a different sector
Formed in 2005, Molson Coors (TAP) is a multi-drink and brewing company famously known for producing a variety of popular beer brands, spirits, and some non-alcoholic beverages, including Coors Light, Miller Lite, Blue Moon, and more.
Although Molson Coors' biggest revenue source comes from its iconic alcoholic beverages, the company spotted the popularity of a growing trend and decided to hop on the bandwagon by expanding its products to fit a market that's a little outside of its expertise.
Related: Beyoncé partners with top-shelf brand on new whiskey
On Sept. 11, the Canadian-American beverage company announced it joined forces with Australian brand Naked Life to launch a new non-alcoholic beverage.
For years, Molson Coors has been the go-to alcoholic beverage brand for many Americans.
However, with this new partnership, the company aims to expand its non-alcoholic sector and create drinks that are just as iconic as the ones already loved by its customers.
This way, sober and sober-curious consumers can still enjoy a similar taste to popular cocktails, including Mojitos, Negroni Spritzes, Gin and Tonics, Cosmos, and Margaritas in a more health-conscious manner.
Additionally, because this is a more health-conscious market, this drink has less than 10 calories, a healthier option than the average classic cocktail, which ranges from around 100 to more than 500 calories per serving.
Molson Coors devises a plan to profit from its sober-curious investment
Molson Coors' expansion into zero-proof beverages is part of a strategic plan that extends beyond beer and aims to increase the value of its beverage portfolio.
According to Molson Coors' Q2 earnings report for 2024, the company's net sales decreased by 0.4%, with a 1.7% decline in its American sector compared to the previous fiscal year.
Because of the negative results in its last reported quarter, the company felt compelled to enter alternative markets and expand its portfolio.
More Retail:
- Red Lobster officially exits Chapter 11 bankruptcy protection
- Popular bankrupt restaurant chain reopens first store
In its Q2 earnings call, Molson Coors' CEO Gavin Hattersley said that aside from its loyal consumers, attracting Gen Z and Millennial customers is a target they are building towards.
Molson Coors' new partnership and the launch of these ready-to-drink mocktails might be the expansion it needs to increase its market size and get back on track.
Related: Veteran fund manager sees world of pain coming for stocks
