Diageo North America announced that it has acquired Ritual Zero Proof Non-Alcoholic Spirits.
Since its launch in Chicago in 2019, Ritual has grown rapidly and is now the no. 1 non-alcohol spirit brand in the U.S. The transaction is in line with Diageo’s "Growth Ambition" to deliver the company’s next phase of sustainable growth.
Ritual was created with a vision to give consumers a simple and accessible way to enjoy their favorite cocktails, from an Old Fashioned to a Negroni or Margarita, without alcohol. Ritual’s founders - David Crooch, Marcus Sakey and GG Sakey - experimented with hundreds of recipes and consulted with bartenders, chefs and beverage professionals to recreate the flavor, aroma and complexity of spirits. Today, the brand’s award-winning portfolio contains alternatives to whiskey, tequila, gin, rum and aperitif, which can all be substituted one-to-one with traditional spirits to create non-alcohol versions of well-known recipes, enabling the brand to participate credibly in top cocktail serves and occasions.
In the United States, the non-alcohol category has grown retail sales value by 31% CAGR over the past five years, with non-alcohol spirits as the fastest-growing segment within adult beverages over that time. Ninety-four percent of non-alcohol buyers also purchase beer, wine or spirits containing alcohol, and annually, U.S. households purchasing non-alcohol beverages spend $292 more than households exclusively purchasing alcohol-containing beer, wine or spirits, demonstrating the incrementality of the category to beverage alcohol.
Diageo is well-positioned to build on Ritual’s already strong position with its significant presence in the non-alcohol category. As the no. 1 non-alcohol spirits player globally, Diageo holds the leading market share position in the three largest non-alcohol markets globally, including the United States, and owns three of the five largest non-alcohol brands globally by value.
In fiscal year 2020, Diageo acquired a minority stake in Ritual through Distill Ventures. Distill Ventures, the world’s first accelerator for founder-led drinks brands, receives funding from Diageo and works in partnership with the company to support founders as they launch, grow and scale the iconic drinks brands of the future.
