Diageo acquires nonalcoholic spirits brand Ritual

• Alcohol giant Diageo announced its purchase of Ritual Zero Proof Non-Alcoholic Spirits, the bestselling booze-free spirits brand in the U.S. according to IWSR data. Financial terms of the deal were not disclosed.
• Diageo first acquired a minority stake in Ritual through beverage brand accelerator Distill Ventures in 2020. Ritual sells alternatives to gin, whiskey, rum, tequila and aperitif designed for cocktails like an old fashioned, negroni and margarita.
• Sally Grimes, Diageo North America’s CEO, said in a statement Ritual will help complement the rest of the company’s portfolio in offering consumers “choice and variety.”

Companies that traditionally sell alcohol are paying attention to the increasing number of adults choosing to moderate their drinking.

The Guinness maker pointed to IWSR data which indicated nonalcoholic spirits is the fastest-growing category in the adult beverages landscape, with 31% overall growth in nonalcoholic drinks. In the press release announcing the Ritual purchase, Diageo said it owns three of the five largest nonalcoholic adult beverage brands globally, including Gordon’s 0.0 and Tanqueray 0.0 gins. In 2019, the company acquired a majority stake in nonalcoholic spirits brand Seedlip.

Marcus Sakey, who co-founded Ritual in 2019, said in a statement the purchase reflects a broader acceptance of nonalcoholic spirits in the CPG industry.

“This acquisition is proof of the mainstream potential of the category, and our shared ambition to make sure a non-alc cocktail is available on every menu and on every grocery and liquor store shelf, providing sophisticated choices to today’s consumer,” Sakey said.