Last year, Coca-Cola launched its first alcoholic beverage in Japan partly to make up for the dwindling sales as the trend to stay away from sugary drinks gains strength. Turns out that people are now giving up drinking alcohol too. This piece in the CNN talks about how a combination of the need to take care of health, and companies and investors, especially in the start-up powered Silicon Valley, sobering down on the alcoholic part of their free will culture, people are turning teetotallers, resulting in the emergence of ‘sober bars’ to alcohol companies launching non-alcoholic beverages.
“Getaway is a sober bar, a new kind of dry nightlife option that is cropping up in New York City. The idea is to provide outlets for people who want to socialize in a bar-like location, but without having to drink alcohol.
They are part of larger trend. People are paying greater attention to their mental health and wellness, and many Americans are specifically looking to reduce their alcohol intake. People of all ages are drinking less beer, while millennials are drinking less overall. And Silicon Valley is taking note, with tech companies reevaluating their alcohol policies and investors looking to capitalize on people who prefer not to drink.
…Their sales of alcoholic beverages have been declining, big alcohol companies, ranging from Heineken to AB InBev (the owner of popular beer brands such as Budweiser), see an opportunity: They’re investing in non-, or low-alcohol drinks. So too, startup investors and entrepreneurs are hoping to cater to the “sober curious,” people who for the sake of wellness are reevaluating their relationships with alcohol and how often they drink.
Kin’s first product is a non-alcoholic beverage called “High Rhode.” It is part adaptogen (a nontoxic plant that is claimed to have de-stressing effects), part nootropics (a supplement said to help with cognitive functions), and part botanics.
… Liquid Death made waves when it launched. The startup applies the bold marketing of energy drinks to a water-in-a-can beverage. Its tagline is “Murder Your Thirst.” Like an alcohol brand, it has an age gate on its website that says, “This water may give nightmares to persons under 18 years of age.”
The idea is to make consumers look cool while they keep hydrated, and to the unsuspecting eye, one may never know they’re downing simple H2O.
The original impetus, according to CEO and co-founder Mike Cessario, was to cater to heavy metal and punk rock fans. But the ability to drink water out of a can (which is more ecofriendly than plastic) and look like you’re drinking a beer or an energy drink, has broader appeal.”
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Note: the above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India as a provider of Portfolio Management Services. Marcellus Investment Managers is also regulated in the United States as an Investment Advisor.
Copyright © 2022 Marcellus Investment Managers Pvt Ltd, All rights reserved.
