Diageo's Latest Acquisition Fortifies Their Non-Alcoholic Portfolio

The hottest trend in booze right now is the absence of actual booze. That might sound like a paradox the first time you see it, but one of the biggest positive trrends in the industry involves non-alcoholic beer and spirits. As The New York Times‘ Dana G. Smith reported last month, it’s a rapidly-growing segment of the overall market — due in no small part to the fact that a lot of these drinks are very good.

And where there’s growth in the industry, there are also business deals to be had. And that’s how Diageo — owner of the likes of Johnnie Walker, Oban and Talisker — came to acquire Ritual Zero Proof, the country’s largest non-alcoholic spirit producer. This isn’t Diageo’s first step into that market; the company took a majority stake in Seedlip back in 2019. But it does feel like a significant step forward, and a sign that Diageo is looking to expand its holdings in the non-alcoholic space.

For Ritual Zero Proof’s founders, one might say that this acquisition is something of a — pun very much intended — proof of concept. “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,” said the company’s co-founder, Marcus Sakey, in a statement.

Spirits industry Dave Infante noted last month in his newsletter that Diageo’s results for the second quarter of this year showed a loss, their first since the pandemic. In light of that news, this acquisition seems like a savvy decision: namely, buying an industry leader in a space where Diageo doesn’t have as much of a foothold.

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As Vinepair’s Pete O’Connell pointed out in a report on the transaction, Diageo first invested in Ritual Zero Proof four years ago. And this acquisition sure seems like it heralds more news ahead: Ritual Zero Proof co-founder David Crooch is set to take a new position as Diageo Non Alcohol’s General Manager.

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Tobias Carroll

Tobias Carroll lives and writes in New York City, and has been covering a wide variety of subjects — including (but not limited to) books, soccer and drinks — for many years. His writing has been published by the likes of the Los Angeles Times, Pitchfork, Literary Hub, Vulture, Punch, the New York Times and Men’s Journal. At InsideHook, he has…