Blake Lively And Katy Perry Push Into The Non-Alcoholic Drinks Market

The non-alcoholic drinks market has been gaining steam over the past year, with many people in society becoming more health conscious in regards to their alcohol consumption and wanting alternatives. There has been a slew of companies that have aimed to fill the space including a couple with major stakeholders such as Blake Lively and Katy Perry.

Blake Lively recently posted the first ever creative campaign for her new brand Betty Buzz which launched last fall after three years in development. Lively has spoken extensively about why she doesn’t drink alcohol and wanted to put something in the market that appealed to many like her, who enjoy socializing but don’t necessarily want to drink.

The beverage launched with five flavors including Sparkling Grapefruit and Meyer Lemon. It’s promoted as a mixer for cocktails or as a beverage on its own. The product is made with real fruit juices and does not include any artificial sweeteners, flavors or colors.

Her husband, Ryan Reynolds, helped produce the ad through his company Maximum Effort which was acquired last year by connected TV company MNTN.

Katy Perry on the other hand teamed up with master distiller Morgan McLachlan to launch their beverage company, De Soi. The firm secured $4 million in funding led by Willow Growth with assistance from Creative Artists Agency (CAA). The tagline for the company is “no booze, all botanicals.”

De Soi launched earlier this year, in January, to use the dry January movement as a potential promotion tool. Both Perry and McLachlan are working Mothers and similarly to Lively saw a growing trend where people wanted a drink without the knock-on effects that alcohol provides.

Talking to Entrepreneur, McLachlan said about the endeavor, “Katy and I enjoy alcohol, but I have a lot of family like my stepmom, who has been sober for like 25 years,”

“There is this huge market for people who deserve to have this sensual, celebratory beverage.”

The brand comes in three flavors currently and as well as launching a new entity that they believe in both are focused on changing the societal norms regarding drinking.

“We’re just excited to be at the forefront of this space, which is brand-new and sober-curious,” Perry says. “People are juggling a lot more and have big dreams, and they know how to achieve them, and they’re going for them. There’s not a whole lot of room for hangovers.”

Key insight

Greg Dobbin, who is senior Vice President of sales at Boom Beverage Corp. has a similar point of view to Lively and Perry after coming from a long career in CPG including past roles with Buddha Brands, Coupgon, ConAgra Foods, and KelloggK
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Boom Beverage is launching AB0VE as its lead consumer brand to tap into the growing trend for non-alcoholic beverages and help retail customers establish this new and growing sub-category.

On the decision to move into the non-alcoholic industry Dobbin said:

“AB0VE was born out of a keen realization that the beverage market was missing something. Something big. Our founders analyzed the industry as it stood and discovered there was a real consumer need going unfulfilled. There is a significant percentage of adults trending towards healthier lifestyles – a large factor of which includes making dietary restrictions and cutting out previous indulgences – alcohol being at the top of that list.”

He continued, “That being said, making healthier choices shouldn’t equate to missing out on the moments in life you used to cherish. That is what we believe at AB0VE, that’s why we’ve created this ready-mixed, full-flavored, non-alcoholic RTD cocktail line. Designed to conveniently recreate an authentic cocktail experience without any alcohol.”

Dobbin heavily stated that taste is such a key component of the non-alcoholic market as people aren’t getting that so-called buzz from alcohol that they usually would. “The taste profile was a key challenge to overcome and deliver on a truly representative mocktail experience,” he said.

Dobbin continued, “The current landscape does not offer a wide array of brands in retail and finding the products can also be a challenge.”

“Retailers – both in grocery and alcoholic beverages – are starting to tackle the challenge of merchandising and wayfinding with new sections appearing. There are also more products now available across categories – in beer, wine and spirits, all with no alcohol. AB0VE is a unique offering that provides a convenient ready-to-drink offering where there is no added mixing required.”

On changing the current popular zeitgeist around drinking, new brands popping up from celebrities, and the age-old habits of getting intoxicated he added, “Currently, alcohol consumption is seen as a very social activity but we do not yet have the representation in these mediums which is likely to shift as these offerings become more mainstream.”

“If you plan to tap into a fast-growing industry make sure to take your time on nailing product. Everything from the formulation to the packaging will be critical for your product to stand out. It’s one thing to tap into new industries and booming trends but if you don’t have a solid foundation you can quickly fizzle out.”

With accolades on their mind, AB0VE entered the IWSC, with two of its flavors Gin & Tonic and Whiskey and Cola – earning a silver and bronze respectively. The awards are known as the world’s largest and most influential low & no and alternative drinks awards. Each year the competition receives entries from over 90 countries worldwide and the awards given by the competition are considered high honors in the industry.

With more celebrities bringing awareness to the trend – through ads such as Lively’s – and more movements towards non-drinking becoming more popularized in certain parts of the world, we may see an industry on par with the alcohol industry in due course.