Alcohol giant Diageo has announced the acquisition of Ritual Zero Proof Non-Alcoholic Spirits, the leading booze-free spirits brand in the U.S. The financial terms of the deal were not disclosed. Diageo initially acquired a minority stake in Ritual through beverage brand accelerator Distill Ventures in 2020. Ritual offers alternatives to gin, whiskey, rum, tequila, and aperitif designed for cocktails like an old fashioned, negroni, and margarita.
Sally Grimes, CEO of Diageo North America, stated that Ritual will complement the company’s portfolio by offering consumers a choice and variety in their beverage options.
The purchase reflects the increasing trend of adults choosing to moderate their alcohol consumption. Nonalcoholic spirits have been identified as the fastest-growing category in the adult beverages market, with a 31% overall growth in nonalcoholic drinks. Diageo highlighted their ownership of three of the five largest nonalcoholic adult beverage brands globally, including Gordon’s 0.0 and Tanqueray 0.0 gins. In 2019, the company acquired a majority stake in nonalcoholic spirits brand Seedlip.
Marcus Sakey, co-founder of Ritual, mentioned that the acquisition signifies a broader acceptance of nonalcoholic spirits in the consumer packaged goods industry. The purchase is seen as a significant investment in the nonalcoholic spirits sector, capturing incremental occasions and driving growth.
The acquisition by Diageo comes after a decline in sales of their higher-end spirits, such as Casamigos tequila and Johnny Walker Whisky, in the recent financial quarter. Several other low and no-alcohol spirits brands have emerged in the market, promoting moderation and offering sophisticated choices to consumers looking for alternatives to traditional alcoholic beverages.
Source
Lara Heller graduated from the University of Amsterdam in the Netherlands with a degree in New Media and Communication. During her studies, she specialized in digital media, social media strategies, and content creation. She participated in various digital media projects during her university years, focusing particularly on online journalism and media ethics. After graduation, Lara started working as a content strategist at one of Europe’s leading digital media agencies, where she developed campaigns that strengthened the digital presence of numerous international brands.
