Exact numbers are hard to come by. A strong guess is that 7% of the beer market is alcohol-free. If so, US sales are in the hundreds of millions of dollars. The primary beneficiaries of this today are large beer brands. They can leverage the overall brand visibility of their traditional products to drive awareness. This is the case with Heinekin 0.0, the top alcohol-free beer in America.
According to Yahoo! Finance, big brewery companies already see a market large enough for substantial investment. AB InBev, the world’s largest brewer, believes that no-alcohol or non-alcoholic beer could be 20% of sales within three years. It has already launched Bud 0.0
Diageo plc, another large brewery, has similar goals. It has started to invest in Guinness 0.0 and aims to make the beer 10% of its overall sales. It is still unclear whether this will increase sales or cannibalize existing revenue. Diageo is betting that the move will raise revenue. This is the fastest-growing beer brand in America.
Heineken Lager Beer was founded in Holland in 1864. The company claims it sells 25 million bottles of beer a year in 192 countries. It has relatively few products for a large brewer. Heineken offers a draught beer and a draught keg. Heineken 0.0 is the only real modification the company has made to its core products.
Why do people drink alcohol-free beer? In some cases, they believe that alcohol is bad for health. This is certainly true with people who have problems with drinking. In other cases, the reason is calories. At 69 calories. Heineken 0.0 has almost 40 calories less than one of its traditional beers.
Alcohol-free beers have become a critical brand extension in a “beer world” in which major breweries must contend with competition that includes craft breweries. Heineken 0.0 is on the leading edge of what will become a major part of the brewery industry sector.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
