Alcohol consumption is down, which is prompting brewers and liquor companies to look for alternatives, including teas, energy drinks, and nonalcoholic spirits, reports The Wall Street Journal. According to industry data compiled by IWSR, U.S. alcohol volumes dropped 0.8 percent in 2018, which was slightly steeper than the 0.7 percent decline in 2017. Beer was impacted even more, with volumes down 1.5 percent in 2018, compared to a 1.1 percent decline in 2017.
Wine showed 0.4 percent growth, down from 1 percent the year before, while spirits climbed 1.9 percent, compared with 2.2 percent in 2017. IWSR's U.S. head says the fall in alcohol volumes reflects "a growing trend toward mindful drinking or complete abstinence, particularly among the Millennial cohort."
Alcohol makers are trying to diversify in response to the slowdown. Molson Coors wants to build out a broad portfolio of "brewed beverages," such as tea and coffee, investing in Bhakti Chai Tea Co. and acquiring a kombucha maker. Anheuser-Busch InBEV SA acquired Hiball Inc., a maker of organic energy drinks, and plans to launch a seltzer brand, Bon & Viv. Diageo PLC invested in Seedlip, which plans to launch a nonalcoholic brand called Æcorn Aperitifs.
IWSR predicts low- and no-alcohol products in the U.S. will grow approximately 32 percent through 2022, triple the category's growth over the past five years. Still, these products represent a small share of the market, reports The Wall Street Journal. Full Story
Related: Craft Beer on Hold Due to Government Shutdown; AB InBev to Develop Cannabis-Infused Drinks in Canada.
from Industry Operations http://bit.ly/2T6OGCL
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