Pernod Ricard gets drunk on alcohol-free

Sociologists drink whey by observing such developments. Consumers who, at mealtimes, have become flexitarians and feast on meatless steaks, are also more and more numerous to toast with “nolo” aperitifs and spirits, for no-alcohol and low alcohol (not and little alcohol). “It had been a niche market for several years. It is developing very quickly,” explains Simon de Beauregard, international marketing director for Pernod Ricard. Although the French group has been marketing the Pacific brand since the 1980s, an alcohol-free aniseed which has had some success, its sales have become very limited. But the situation has changed. According to the specialized agency IWSR, worldwide sales in this segment now weigh 10 billion euros and are growing by 50% per year. “Health, dietetics, road safety and the desire to maintain control explain this development”, deciphers Marion Lebeau, creator of the Osco brand, an alcohol-free aperitif produced in the South-West.

From beer to Suze

The phenomenon began with beer, a market where non-alcohol represents more than 10% of sales in France. And every year in January, the “Dry January” abstinence campaign, imported from the United States, reinforces the trend. At Pernod Ricard, the subject is all the more burning as the group has adopted a strategy centered on consumers since the arrival at the head of the group of Alexandre Ricard in 2015. No more question of being satisfied with selling quality drinks , we must create or develop the products that customers expect, striving to anticipate promising impulses.

According to studies cited by the company, a quarter of French households bought at least one non-alcoholic aperitif last year. Like the small gin brand Ceder’s, created in 2017 and bought in 2021 by the spirits giant from its two creators. This 0° drink, devoid of sugar, calories and additives, sold 250,000 bottles in twenty countries at a unit price of 23 euros for 50 cl. The company believes in it so much that it has renovated the label and invested in online communication. An entire page is devoted to him on the Amazon site. And influencers passionate about cocktails are put to work.

But the offensive in non-alcohol is also via much older brands of the Pernod group. This wakes them up. This is how Suze Tonic was created, a ready-to-drink cocktail based on the famous gentian liqueur. This new product, launched in France and Switzerland, is manufactured in the brand’s historic factory, in Thuir, near Perpignan (Pyrénées-Orientales).

Another venerable brand is getting a makeover with alcohol-free. Pernod Ricard launched Cinzano Spritz Zero in April, packaged in cans. “The spritz fashion is not over and continues even with ready-to-drink and alcohol-free products, explains Simon de Beauregard. It’s a very tactical launch before the summer.”

Competitors on the spot

Another proof of this opportunism, the group also draws half the alcoholic versions of its Beefeater gin and Ballantine’s whiskey brands: 20° instead of 40°. “We started marketing in Spain. We will then extend it to other countries depending on the reception received”, explains Simon de Beauregard.

Of course, all the competitors are also doing it, like Bacardi, which offers a non-alcoholic Martini. This confirms the well-known rule of the global spirits business: success does not lie in the ability to make profits, but in that of investing them in innovation and communication.

JUICY MARKET 10 billion euros in annual sales worldwide. + 50% annual growth in the global market for non-alcoholic and low-alcohol spirits. SOURCE: IWSR 2022.