Pernod Ricard has acquired a minority stake in Almave, a non-alcoholic blue agave-based spirit brand co-founded by Formula One star Lewis Hamilton.
Pernod Ricard describes Almave as embodying the 'confluence of three accelerating global trends': the rising popularity of tequila, the growing demand for non-alcoholic beverages, and the increasing consumer desire for authenticity in their drink choices.
The French wine and spirits giant plans to leverage its brand-building expertise and global distribution network to expand Almave into various international markets.
Launched less than a year ago in both the US and UK, Almave offers a non-alcoholic alternative to tequila. It utilises the same raw materials as tequila but omits the fermentation process that generates alcohol.
lmave's unique approach allows drinkers to savor the fresh and distinct agave taste and character traditionally associated with tequila, but without the alcohol.
The drink can be enjoyed in various ways: it can be sipped or mixed into cocktails for a refreshing non-alcoholic alternative.
Almave launched in October 2023 with two expressions.
Almave Ámbar Distilled Non-Alcoholic Blue Agave Spirit was created for sipping.
Then there's Almave Blanco Distilled Non-Alcoholic Blue Agave Spirit, which was created for mixing.
Almave was co-founded by Hamilton, spirits innovation incubator Casa Lumbre in Mexico and advisory and investment firm Copper.
The financial details of Pernod Ricard’s investment have not been disclosed.
Pernod Ricard, known for its extensive portfolio of global spirits brands like Absolut vodka, Jameson Irish whiskey, and Beefeater gin, made its initial significant move into the alcohol-free market in 2021 by acquiring a majority stake in the innovative brand Ceder’s.
Pernod Ricard has expanded its presence in the alcohol-free market by launching non-alcoholic versions of some of its flagship brands. These include Beefeater 0.0%, Seagram’s 0.0%, Suze Tonic Zero, and Jacob’s Creek Unvined Wines. However, the Jacob’s Creek Unvined Wines brand is now being sold to Accolade Wines.
In 2022, Pernod Ricard established a new business unit in Paris specifically focused on expanding its non-alcoholic category. This unit is dedicated to leveraging expertise in marketing, insights, operations, and business development to drive growth in the non-alcoholic segment.
It has also invested in technical facilities dedicated to accelerating its expertise in non-alcoholic spirit alternatives including but also beyond gin.
The alcohol-free market is experiencing significant growth, particularly in the US and UK. According to IWSR Drinks Market Analysis, non-alcoholic drink volumes in the US increased by 29% in 2023 compared to the previous year, while the UK market saw a 17% growth.
In the low/no category?, popular products tend to mirror what's being seen in the full-strength sector.
Susie Goldspink, Head of No and Low-Alcohol at IWSR, highlighted that tequila alternatives, in particular, have a strong pathway forward.
'The US no alcohol spirits market is well poised for strong growth as the large market is relatively under-indexing in terms of uptake of no-alcohol products compared with some European markets,' she said. 'Double digit growth is expected in all major no-alcohol categories (Beer, Wine and Spirits).
'No-alcohol tequila products are a clear opportunity following the growth of the full-strength category in the US coupled with the saturation of no alcohol gin and botanical products, leading to investment in new no-alcohol spirits sub-categories such as tequila and dark spirits.'
