As the universe of non-alcohol beverages continues to expand rapidly, a new type of retail store has emerged as a hub for consumers interested in these products. Off-premise outlets dedicated solely to alcohol-free spirits, wines, beers, RTDs, and functional beverages are debuting around the country, in markets big and small, carving out a niche for the growing segment of shoppers who want to enjoy the social nature of drinking without alcohol. These zero-proof shops offer a full lineup of beverages, along with educated employees who can talk newcomers through a variety of offerings to demystify the non-alcohol experience. And even though most of these stores are in their infancy, they’re already seeing huge returns and interest from consumers.
Spirited Away is a pioneer in the zero-proof retail space. The bottle shop in Lower Manhattan opened in 2020 during the Covid-19 pandemic and claims to have been the first non-alcohol store of its kind in North America. The store focuses on adult elevated nightlife and social beverages and stocks more than 350 products. Co-owner and general manager Alex Highsmith says business has increased dramatically since the concept launched and she expects it to continue growing.
“We’re a completely non-alcoholic bottle shop and we have the words ‘No Booze Sold Here’ on the front of the store window, and people come in thinking that’s a joke,” Highsmith says. “We’re very much a space of discovery and the concept takes a lot of education. I’ve seen firsthand how these products blend seamlessly into peoples’ lives and make every interaction a little more accessible. In the same way alcohol is ever-present, these beverages will continue to be present.”
Highsmith notes that many shoppers at Spirited Away spend upwards of 30 minutes or more browsing through the store. And she adds that a lot of her customers drink alcohol, noting that the non-alcohol products she carries are not always a full-on replacement for traditional spirits, wines, or beer, but rather another option for consumers. “We’ve seen a huge uptick in young people wanting to shop in the store,” Highsmith explains. “Young people are looking for alternatives and that’s been really cool.”
Spirited Away sells a full roster of zero-proof products, from traditional spirits replacements, wines, and beers to functional beverages that contain low-dose THC and CBD, ashwagandha, L-theanine, and more. Top-sellers at the store include Copenhagen Sparkling Tea ($27 a 750-ml.), which evokes sparkling wine without alcohol; Three Spirit functional beverages ($42.50 a 500-ml.); and The Pathfinder ($39 a 700-ml.), a hemp-based non-alcohol herbal spirit. Highsmith says that one of the biggest challenges for newcomers to the non-alcohol beverage space is the price—as many of these products cost as much as their alcohol-included counterparts—so sampling is often very important. Spirited Away hosts events regularly and also consults with bartenders throughout the city who are looking to expand their zero-proof cocktail menus.
“New York is [often thought of as] a drinking city, but it’s actually just a social city with drinking as an option,” Highsmith says. “New York City has been the first and best to embrace the non-alcohol movement. The place with the most possibility for vice also has the most possibility for alternatives.”
Creating A Category
The swift increase in awareness of zero-proof beverages has helped retailers like Boisson grow rapidly in a short period of time. Boisson, which launched in 2021 in Brooklyn, New York, now has nine stores, including five in New York City and one each in Los Angeles, San Francisco, Miami, and Coral Gables, Florida. Last year, Pernod Ricard’s Convivialité Ventures invested $5 million in the company to help foster further growth. And beyond retail, Boisson recently announced the expansion of its wholesale division through partnerships with distributors KeHe and LibDib.
“These latest developments will help fuel domestic and international expansion, strategic partnerships, and curated product collections, and usher Boisson into its next era,” says company founder and president Nick Bodkins. “We’re a one-stop shop that has streamlined the industry and made it easier for consumers to find elevated, high-quality non-alcohol options. The perception of non-alcoholic beverages has changed a lot.”
Bodkins notes that zero-proof offerings have become significantly more sophisticated over the last few years. He points to successful non-alcohol brands like Ghia aperitif ($38 a 500-ml.), Pentire spirits ($40 a 700-ml.), Kolonne Null wines ($20-$28 a 750-ml.), and French Bloom sparkling wines ($39-$44 a 750-ml.) as leaders in that realm. Overall, Boisson stores carry more than 125 zero-proof brands, including a handful of hemp-infused and adaptogenic beverages.
“The non-alcoholic beverage category is having a major moment,” Bodkins adds. “Over the next five years, we plan to continue to build our on-premise wholesale arm to work with restaurants and bars across the country, while putting a heavy emphasis on growing our off-premise chain account business. We’re actively transforming the way society thinks about alcohol consumption and drinking culture for generations to come.”
The Ceremony Dry Bottle Shop brand has seen similar success. Founded in 2022 in Virginia Beach, Virginia, the company now boasts five locations in Virginia and two in North Carolina, with three additional stores set to open in Virginia soon. Ceremony offers more than 200 SKUs, representing a wide swath of non-alcohol beer, wine, spirits, bitters, mixers, functional drinks, and mocktails; the company does not offer products that contain CBD or THC.
“Ceremony’s work has remained the same since day one—to create a point of access, education, and support for people to live the life they want,” says proprietor Chris Simmonds. “At the start of 2023 we doubled our ready-to-drink mocktail options and in mid-2023 we revamped our wine selection to reflect the best brands available. This year, we plan to add more spirits, dealcoholized wines, and beers.”
To increase its reach, Ceremony has recently added a non-alcohol pop-up bar space that offers a variety of zero-proof cocktails inside a coffee shop in Norfolk, Virginia. Simmonds says the venture has been very well received and that he’s considering the viability of adding an on-premise concept into his business mix, especially as interest in non-alcohol products continues to grow. “I believe there will be more non-alcohol retail outlets opening to meet the needs of the community,” he adds. “This is here to stay. It’s always been here, it just hasn’t had this much attention, surge in options, or the spotlight needed to become normalized. The rise in individualism, instant access to information, wellness, and now, accessibility, will continue to carry this category.”
The hybrid retail and on-premise concept is working well for Robert C. Theodorow, the owner of Generation NA in Lafayette, Indiana. His space opened in 2022 as a one-day-a-week pop-up business and quickly took off. Within months he relocated to a larger permanent spot and he says business has exceeded all expectations. Generation NA stocks more than 400 SKUs and offers beer, kombucha, and hemp-infused seltzers on tap, as well as themed tastings and regular product sampling events. The company’s sales so far in 2024 are up more than 300% over the same time period in 2023, according to Theodorow, led by functional beverages that include hemp-derived, THC, CBD, and adaptogenic labels.
“I wanted to open the first dedicated non-alcoholic bottle shop in the Midwest,” Theodorow says. “I wanted to create a fresh liquor store-bar-brewery vibe to provide customers with an experience they would likely miss when cutting back or abstaining from alcohol. I started Generation NA as a hobby business and it has quickly grown.”
The Real Deal
The non-alcohol retail movement got its start in larger metropolitan hubs, and many urban markets are seeing steady continued interest in outlets dedicated to zero-proof offerings. Christina Torres launched Bendición Bottle Shop in Chicago in 2022 after doing pop-ups of the concept for a year prior. Bendición stocks more than 250 SKUs from 150 brands, and Torres says the shop’s inventory has more than doubled since it opened.
“There are way more options now, and we want to provide as many of them to our customers as we can, while remaining selective,” Torres explains. She adds that Bendición hosts regular sober events for the community, which is as important to her as maintaining the retail front. Some of Torres’ favorite non-alcohol products include beers by Untitled Art ($2.75 a 12-ounce can), RTDs by Blind Tiger ($5 an 8.4-ounce can) and Nope Beverages ($5.25 a 12-ounce can), and spirits like Trejo’s Tequila Alternative ($36 a 750-ml.). “In the long run there will always be a need for specialty non-alcohol bottle shops because they’re locally owned community spaces,” Torres says. “They’re run by people who are knowledgeable on the products, know the brands and flavor profiles, and are able to help people pick out the best options. These are not things you’ll get in a big chain store.”
In Seattle, the non-alcohol shop Cheeky & Dry has only been open for about six months, but it’s already surpassed the expectations of owner Kirstin Vracko. “I thought I was going to have a nice little shop, but it’s been very busy,” she says. “Business is fantastic. We’re already looking for a second location because response has been amazing.”
Cheeky & Dry offers about 250 SKUs, ranging from alcohol-free spirits, wine, beer, and RTDs to CBD beverages. Vracko says zero-proof spirits and RTD cocktails have been early fast movers, and she adds that functional beverages providing health benefits along with great taste are also popular. Cheeky & Dry maintains a sampling station in the store, from which guests can taste many of the products sold on site, and the space also hosts brand-sponsored tasting events.
“This isn’t about excluding alcohol, it’s about giving people options and making sure everyone has something they really like,” Vracko says. “It’s exploding at the moment. Zero-proof beverages aren’t going anywhere.”
Stephanie Styll, the CEO and founder of Killjoy in Nashville, Tennessee, agrees. Her space opened about a year ago and has been thriving ever since. “I was afraid to go up against the mentality that Nashville is a booze-soaked town, but it turns out we’re a big enough city that there are plenty of people who are thirsty for an alternative, and we have a large sober community here,” Styll says. “We weren’t sure what the market would be like in Nashville for this, but our sales numbers have increased every single month we’ve been open.”
Killjoy stocks about 350 SKUs. Styll says that at the start she offered roughly equal amounts of non-alcohol spirits, wine, and beer labels, but as the months progressed she’s shifted her focus. Now, she puts more attention on finding quality zero-proof wines and spirits, as well as functional beverages with CBD and low-level THC. And like many of her non-alcohol retail counterparts, she offers samples of products sold in the store so guests can taste them before committing, and she hosts events regularly to build community and foster relationships.
“We want the message to be that these alcohol alternatives are great for everyone,” Styll says. “Public opinion of this category, even over the past year, has changed pretty dramatically and I think it’s going to grow and have real staying power. The more people discover how they can integrate these drinks into their lives and improve their lives, the more it will catch on. Interest is only growing and there’s plenty of room in the market for more.”