Non-alcoholic beverage sales spike in N.L. as dry January picks up steam

Alexi Ladéroute rocked a martini shaker back and forth at Terre Restaurant in downtown St. John's and poured a golden coloured liquid into a ice-filled Collins glass, topped with a curled cucumber garnish and a straw. 

The cocktail is mixed with a non-alcoholic spirit — something Ladéroute, the restaurant's food and beverage manager, says is selling steadily and growing in popularity. 

"I would say anywhere from six to 10 per cent of the beverage sales in general are using these," he said of the non-alcoholic gin alternative made by a company called Ceder's. "That's not including non-alcoholic beer but considering we're a very wine-forward restaurant, I see that as a relatively large aspect."

The sales of non-alcoholic beverages are spiking in Newfoundland and Labrador and across the country as trends like "dry January" pick up steam and some people consider consuming less alcohol throughout the year or cutting it out entirely.  

On Monday, the Canadian Centre on Substance Use and Addiction released a report that says no amount of alcohol consumption is safe and consuming more than two drinks a week can be risky. It's a big shift from previous guidance, which recommended no more than 15 drinks for men per week and 10 for women, and has some experts calling for cancer warning labels on alcohol.

Ladéroute said an essential component of the restaurant industry is ensuring everyone feels welcome, including people who aren't drinking alcohol. Having non-alcoholic options helps those patrons when the rest of the table is ordering a cocktail and clinking cheers, he said.

"To have something that makes them feel just as special or just as included.… They're having a great drink, so are their friends," he said.

Non-alcoholic offerings can be met with a bit of skepticism, said Ladéroute, but customers are starting to expect them on menus.

While some may scoff at paying a similar price for a non-alcoholic drink as a cocktail without alcohol, Ladéroute said it's important for people to consider whether being inebriated has value.

"It's important to treat them as an alternative and not necessarily as a replacement. They are just as valid as having something that's alcoholic," he said.

"So I always compare it to vegetarian dishes, where a great vegetarian dish is not trying to be a prime rib.… I think something non-alcoholic should just stand on its own, its own place and be outstanding."

Ladéroute says the non-alcoholic spirits they sell are distilled until the alcohol is removed but the flavour — like juniper, which gives gin its taste — is left behind.

"Some other brands I've seen, they're treated more like a tea or make a very concentrated herbal infusion without alcohol being part of the equation," he said.

"They're very delicate, they're light, all of them, they're very refreshing."

Sales spike in the grocery aisle

Colemans grocery stores in St. John's are also seeing a spike in non-alcoholic beverages.

They're carrying about half a dozen non-alcoholic beer brands and a booze-free cider, in a category that marketing vice-president Greg Gill says consumers are demanding more often.

"We're seeing double-digit growth in non-alcoholic beverage sales over the past year and it continues to grow," said Gill. 

He said they're also seeing big international beer brands like Corona, Heineken and Budweiser as well as craft beer and cider companies release non-alcoholic products. 

"Where at once you might find a watered-down light beer with no alcohol, one taste profile — which was next to nothing — now we're seeing IPAs, stouts, flavoured beers and that sort of thing and ciders," Gill said. 

"The variety and taste profiles, I think, is another thing that is driving the growing popularity in those beverages," he said.

Gill said some of their customers are buying the products while chasing the health benefits of cutting back.

"People who want to go out and celebrate and have a drink with their meal or with friends but don't want some of the ill effects of alcohol, some people that are very active and many have things to do the next morning may not want to take on that alcohol," he said.

Gill said they saw sales increase over Christmas but are also seeing a sustained lift in sales throughout the year.

"All our research is showing that this is going to continue to grow, and it's something we're all too happy to provide to our customers."

 NLC eyeing trend

It's a trend the Newfoundland Liquor Corporation, which imports and distributes booze throughout the province, is also watching.

In a statement, the corporation says it's started to stock products with lower or even no alcohol. noting millennials and Generation Z have different perceptions of alcohol consumption than older generations.

"They seem to consume less and/or no alcohol.  And what they do consume are lighter in alcohol, calories, sugar or all of the above," wrote chief marketing and merchandising officer Peter Murphy.

Murphy says the corporation plans to expand its offerings.

Restaurants adapting to survive

The growth restaurants, grocery stores and the liquor stores are seeing isn't unique, according to market research firm Nielsen IQ; in the United States non-alcoholic beverages are seeing double-digit sales growth, with sales up more than 20 per cent in 2022 over the previous year.

Richard Alexander, Atlantic vice-president of Restaurants Canada, says many restaurants are creatively adapting to the trend, getting a boost from dry January.

"That's how the industry survives, and you're seeing healthier items come onto menus and non-alcoholic drink options — so it's a change in the industry, but it's a change that's been happening a while and this will just accelerate it," Alexander said. 

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