The Holiday Season Offers Big Opportunity for Non-Alcoholic Sales
From Thanksgiving to New Year’s Day, drink purchases for parties and gifting soar, but in 2024, demand for non-alcoholic alternatives is soaring, too. Retailers and on-premise venues stand to build lasting consumer relationships with intentional alcohol-free inventories.
The rise of non-alcoholic beverages is undeniable and impressive, with sales increasing 32% according to NielsenIQ. With a growing number of consumers showing interest in booze-free options, the holidays are a vital time of year to lean into that trend. For the season’s busy social calendars, providing NA options is now more important than ever.
“We’ve found that 41% of Americans are seeking to reduce their alcohol intake in 2024,” says Jordan Bass, Co-founder and CEO of HOP WTR. “During the holiday season, when spending is at an all-time high, it’s important to cater to all types of consumers, especially those who are constantly on the lookout for new products that fit into their lifestyle choices.”
When planning for the holidays, on-premise venues, as well as off-premise retailers, shouldn’t underestimate just how large the non-alcoholic audience is. The market for non-alcoholic drinks ramps up at the holidays. Chris Furnari, Athletic Brewing Company Senior Communications Manager, points out that anyone hosting holiday gatherings will want to purchase alcohol-free options, alongside alcoholic ones, to cater to all their guests.
There are a myriad of reasons people might not want to imbibe, beyond complete sobriety — Furnari says 80% of Athletic customers also still drink alcohol. Other studies have found 58% of consumers switch between alcoholic and non-alcoholic beverages even within the same occasion.
Whether it’s because they want to be able to socialize longer, or because they’re trying to avoid a hangover the next day, people like to feel included in the festivities. Adding non-alcoholic options provides that opportunity.
It’s with that in mind that non-alcoholic brands put intention into branding. Just because there’s no alcohol doesn’t mean these options don’t fit in seamlessly alongside other party or holiday season favorites.
Considering the wide range of non-alcoholic offerings and the equally wide range of non-alcoholic consumers, there’s a world of opportunities for retailers, restaurants, and bars to make all shoppers and guests feel welcome and boost sales with more options. The first step is to mix inventories up between classics and new offerings. Non-alcoholic consumers are actively seeking out new things to try. Sobriety or moderation might be new to them, and they’re eager to explore what’s available. Meanwhile, many consumers will keep looking for familiar favorites, too.
Merchandising
Off-premise retailers can effectively market their inventories with dedicated displays. One tip is to keep all non-alcoholic offerings together, because shoppers shouldn’t have to pick something up and worry about whether it has alcohol or not. They should know that, by shopping in a certain section, everything they’re curious about is booze-free.
Creating a shelf set with non-alcoholic spirits, beer, and RTDs, and co-merchandising that space with premium mixers, gives customers a better understanding of what options are available.
Sharing product availability and brand assets on social media is another way to drive awareness and trial. Stores can think about spotlighting non-alcoholic drinks the same way they would with alcohol, messaging around which reaches a fever pitch during the holidays. Dedicated posts about alcohol-free options, classics to find and new brands to discover can cut through the noise to reach interested consumers.
On-premise venues can do their own spotlighting by making sure non-alcoholic options are prominently displayed on menus. In the past, alcohol-free beverages appeared at the bottom or back of menus, communicating that they were an afterthought. Highlighting them in their own menu section alerts guests that these are elevated non-alcoholic options.
Perhaps more important is that retailer and restaurant staff be prepared to answer any questions consumers may have about non-alcoholic beverages. These questions may indeed be more numerous, as new shoppers explore the segment, and as more people start buying these options. Product education is vital.
You may want to consider adding tasting and researching new products as part of employee training. If employees don’t know what they’re selling, it’s really hard for the customer to put their finger on something and guess if they’ll like it. Your employees should be able to tell your customers, “This is a good product.”
Tis the Season of Non-Alc
Being prepared with non-alcoholic options for the year’s busiest social season sets retailers up for success. It can make the difference in purchases. Retailers have reported that, during the rest of the year, about 80% of sales are alcoholic, 20% being non-alcoholic. But around the holidays, that can shift to closer to 50-50.
There’s significant potential for consumer engagement during the holidays, and that is especially primed for building lasting relationships when people are reevaluating their relationships with alcohol and looking for varying options for different occasions. A favorable holiday purchase tells a consumer they can trust a store for staples and future discoveries. The holidays, after all, lead right into Dry January. Per Forbes, one in five adults said they participated in the alcohol-free month in 2022, up 13% from 2021. A good non-alcoholic gameplan for the holidays is a good gameplan for Dry January and all the various individual consumer goals for the rest of the year.
About the Author
Courtney Iseman is a Brooklyn-based freelance writer covering craft beer and spirits for Food & Wine, Craft Beer & Brewing, Brewing Industry Guide, PUNCH, Inside Hook, VinePair, Thrillist, Wine Enthusiast, and more.
About Kramer Beverage
Kramer Beverage is South Jersey’s largest beer wholesaler and is owned and operated by the Kramer family – through four generations – since 1924. Kramer Beverage is based out of Hammonton and serves an eight-county footprint in South Jersey with top brands from Molson Coors, Constellation, Yuengling, Boston Beer, Heineken USA, Pabst, Diageo, FIFCO, and others. Kramer Beverage also distributes wine, spirits, and a variety of craft beers from suppliers such as New Belgium and Sierra Nevada to local favorites, including Cape May Brewing, Flying Fish, MudHen, Double Nickel, Evil Genius, and Glasstown. For more information on Kramer Beverage, please visit www.kramerbev.com.