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The simplistic days of super-sweet, summer-only mocktails made of afterthought mixers are going fast—or already gone.
Today’s “premiumization” of zero-proof cocktails demands craftsmanship equal to the finery of high-cost cocktails. Moralistically, its standards can even surpass the social capital of the most luxe alcohol types. No matter their distant origin or refined flavor profile, even essential spirits have started to show their age.
A generation grown in globalization, Gen-Z has new ideas of luxury. This soon-to-be majority values cultural inclusivity, healthy ingredients, and green sustainability more than any other. Among other record-breaking slants (toward green economies, corporate responsibility, and social justice), Gen-Z is also the most sober-curious. Innovative “mocktails” are free to be enjoyed by any age, religion, background, or life experience.
The concept of inclusion and world-aware values is shaping the sophistication and profit potential of new bar and restaurant beverage programs. While many still love wine pairings, social cocktails, and bar drinks—a growing segment wants to open up palates, preferring zero-proof as fine dining.
Anticipate this shift before the almost timeless “prestige” of wine, beer, and liquor dries up. Explore the five elements of a premium non-alcoholic beverage program, and test the actionable tips BinWise suggests for seamless implementation.
Key Takeaways
Non-alcoholic programs have proven critical in the evolution of casual and fine dining. Blending appealing no-alcohol experiences within traditional hospitality makes a few demands and improvements for profitability:
- Premiumization: High-end, seasonal, and holiday-limited mocktails (from $14 to $18) with curated pairings mirror traditional cocktail margins while many zero-proof spirits replicate their complexity.
- Innovation: Fermentation, adaptogens, and global flavors like yuzu elevate non-alcoholic drink offerings as ethical or local sourcing and waste reduction efforts communicate customer values.
- Trends: Almost half of all Gen Z diners prioritize zero-alcohol options in an industry already surpassing $11B. Bars can see up to 30% higher spend with pairing menus and limited-edition non-alcoholic drink lists for each season.
Premiumization for Non-Alcoholic Beverages
Some bars and restaurants assume traditional spirits are timeless, but among the youngest drinkers, they are only harder to sell with each added point of alcoholic ABV. Favored low- or no-alcohol creations do not simply use ingredients creatively. Instead, every ingredient’s story, source, and distinction becomes part of the enjoyment.
Consider the retail cost of a few favorite zero-proof spirits. These examples can do more than mimic the complexity of traditional liquor, and many are so labor-intensive and pain-staking in production that they easily justify markups for those in the know:
Ghia Original Apéritif
Gentian root, rosemary, and a blend of herbal citrus notes is praised for complexity that exceeds most mid-shelf, traditional aperitifs. Botanical sources, high-labor production, and limited batches allow its 750ml bottles to sell at $40 or more.
Lyre’s Agave Blanco
This brand has intelligently overcome the challenge faced by many “NA” spirits—the depth and complexity of alcoholic distillation. Earthiness gets a run for the menu with this no-alcohol agave spirit poised to take market share from tequila.
To pay for the research and development going into its distillation, replicating the nuances of well-loved flavors, means the draft foes for at least $35 per bottle (700ml).
Nassau Free Whisky
For around $30 per 500ml bottle, no-alcohol drinkers can enjoy oak-smoked, German-malted barley that resembles some of the best single-malt whisky. Its price, higher per milliliter than most others, is barrel-aged and carefully crafted from several imported ingredients.
Seedlip Garden 108
A vacuum-distillated curiosity made of herbs and peas brings production costs that easily compete for mid- to premium-tier gin—at $40 per 700ml. The drink itself commands delicate flavors well-reviewed by liquor aficionados and sommeliers.
Pentire Coastal Spritz
The combination of blood orange, rock samphire, and sea kelp is more mixological genius than the usual spritz cocktail. This brew is sourced from coasts, communicating the rare value of seaside botanicals more often seen in premium skincare. Without sugar or alcohol, its novelty and complexity outweighs each bottle’s cost.
Selective Ingredients, Sustainability & Sourcing
Zero-proof spirits and their mixology with other fine, locally-sourced ingredients communicates futurity. It’s best to choose local ingredients, sustainable sources, and best-practices for an eco-conscious bar alongside premium NA spirits.
Beyond reflecting the sensibility of eco-savvy, globally conscious, Gen-Z diners, NA cocktails and non-alcoholic beverages up their appeal with adaptogens, rare herbs, ocean botanicals, and challenging productions, like reverse-osmosis and vacuum distillation.
Bars should not only understand the cost of these ingredients for pricing. They should also be ready to communicate the value and story of ingredients that leave once-fine Old Fashioned looking a little ordinary.
Here are a few tips to succeed at scripting your server’s offers:
- Train bartenders and service staff to upsell these drinks with pairings that add to a premium-feeling experience.
- Bundle your zero-proof options with tasting menus that can offset the cost of high-cost non-alcoholic ingredients.
- Leverage social media and menu-based messaging to emphasize the story and sophistication of your recipes.
Frequently Asked Questions on Non-Alcoholic Beverage Programs
In fine dining and casual restaurants, bar management and beverage directors wonder how to add and prompt non-alcoholic drinks in ways that appeal to current and future customers.
Industry beverage trends and sales data for year-round and seasonal mocktails and zero-proof spirits give them key insights for designing their own take on high-margin non-alcoholic beverage menus. Take a look at some of the ways this market is emerging.
How strong is the demand for non-alcoholic options in fine dining?
The demand for non-alcoholic options is vast when almost 2 out of 3 diners choose to order non-alcoholic beverages when dining out.
Gen Z is driving this reduction in alcohol consumption when compared to millennials and previous generations. Non-alcoholic pairings and menus have become staples for this segment. These statistics prove the importance of sophisticated alcoholic alternatives catering to changing attitudes toward drinking.
Should non-alcohol menus avoid words like “mocktail”?
Yes. Terms like “mocktails” or “non-alcoholic” might deter guests seeking premium drink experiences on menus that make them seem “lacking”. Instead, use “zero-proof” or “spirit-free” to align these creations with positive, luxury branding.
POS platforms note that more than 50% of bars and restaurants already offer non-alcoholic versions. These same groups should strive for more progressive labels in order to attract discerning Gen-Z customers looking for real satisfaction (rather than mere substitution).
Are non-alcoholic beverages profitable for bars and restaurants?
Certainly! Non-alcoholic cocktails priced between $14 to $18 can yield margins from 65% to 75% and up. Globally, the zero-proof market is worth well over $11 billion.
Even in dry spells for bars, like annual “Dry January” trends,” restaurants have proven to increase sales from 300% to 500% year-over-year by adding appeal to innovative, imported spirits without alcohol.
How do we train staff to promote zero-proof spirits and mocktail options?
Train teams to highlight ingredients, craftsmanship, and concept—rather than focusing on alcohol “compromises.”
Consider how the Hyatt’s zero-proof beverage program saw an enormous gain in sales after staff training staff to emphasize the sophistication of non-alcoholic flavor profiles and food pairings. Developing flights, tasting sessions, scripts for servers can also support non-alcoholic drinks to get the right “in-house” and “on-brand” treatment.
What about non-alcoholic beverages matters most to customers?
Guests seeking zero-proof cocktails and delicious NA creations prioritize sustainability more than your other patrons. Among them, almost half want brands to use recyclable packaging and local sourcing.
Presenting these moral responsibilities and brand values in your bar could mean describing how citrus peels and herb stems are repurposed for natural syrups. Think about how you can serve the brand, showcase kitchen sustainability efforts, and promote zero-alcohol beverages on memorial day and every day with thoughtful practices.
