Retailers cash in on ‘massive’ shift in Aussie drinking culture

More and more Aussies are going alcohol-free and it’s not just for Dry July.

Australia’s drinking culture is changing as the popularity of zero-alcohol beverages continues to explode.

As Aussies head into Dry July, Endeavour Group Director Buying & Merchandise Tim Carroll said a growing movement of “drinking less, but better” has seen an explosion in demand for alcohol alternatives.

“Customers are increasingly opting for low intervention and organic wines, sugar-free ready-to-drink alcohols or artisan, craft spirits,” Mr Carroll said.

But of those categories, Mr Carroll said across the retailer’s major liquor stores – BWS and Dan Murphy’s – the zero-alcohol industry had solidly become their fastest growing category in the past three years.

More and more Australians are opting to go alcohol-free.

According to Endeavour, BWS and Dan Murphy’s, sales of zero-alcohol beverages have grown by more than 150 per cent in the last two years and the retailers now offer over 329 different products.

“Because the quality of the new wave of zero alcohol drinks is so good, what we are seeing is that once customers have tried these for whatever reason, they keep coming back – many simply like the taste; it’s not a compromise to choose a zero alcohol option anymore,” Mr Carroll added.

The growing demand to have a drink with mates but not a hangover is what drove Irene Falcone to found sansdrink.com.au – a non-alcohol wine, beer and spirits online superstore in 2020.

And for lovers of house parties and footy game nights (or just a quiet night in with a glass of red) Irene Falcone’s bottle shop boasts up to 400 zero-alcohol drinks from quality wines to booze-free beers and spirits.

Irene Falcone started SansDrinks two years ago as an online store – her non-alcoholic bottle shop is now booming with demand for her products soaring. Picture: Supplied

“My business has grown ten times in size from when I first started two years ago – last year I did 10 million dollars in the last financial years and I’ll probably do 20-30 million in the next – honestly it’s mind blowing,” she said.

“Last year was my first Dry July and it was massive … I think people use the month as an excuse to take the plunge and try non-alcoholic drinks and what’s happened is we finally have good products so it’s not just grape juice anymore.”

Ms Falcone says part of the huge success and demand for non-alcoholic drinks is that it doesn’t feel like a cop out.

It’s a social shift in Australia’s renowned drinking culture that she believes is becoming more about socialising and less about what you’re actually drinking.

“Someone can walk into my store and see a bottle that says Barossa Valley Shiraz, 2018 and they know we’re talking about a regional wine, we’re talking about a dated wine so it’s been aged for a few years and then at the bottom of the label in small writing it says alcohol free,” she added

“We’ve got the men on board with the alcohol free beers, so it’s not just a movement for women – it’s about accessibility, it’s normalised and mainstream to drink non-alcoholic drinks.

“I also have such a huge Muslim female customer base … so for them, being able to open up a bottle that has the safety of a halal certification takes the worry away for those customers too.”

SansDrinks offers up to 400 different non-alcoholic beverages – from quality alcohol free wines to booze-free beers and spirits. Picture: Supplied

And according to Endeavour’s data, it’s young Australians who are more health-conscious that are driving the zero-alcohol trend.

“Australians are drinking less but better across all demographics, but Zoomers and Millennials are definitely driving this trend,” Mr Carroll said.

“Customers are mainly choosing zero alcohol products to moderate their consumption or to have options for specific alcohol-free occasions, such as OcSober, Feb Fast or Dry July, midweek drinks or if they are the designated driver.”

Dry July is a yearly charity fundraising campaign that challenges Australians to go alcohol free for the month to raise funds for people affected by cancer.

As more alcohol-free campaigns like ‘Hello Sunday Morning’ and ‘Untoxicated’ help destigmatise sobriety in Australia, independent non-alcoholic retailers say that Australia’s social drinking culture doesn’t have to be bad for your health.

According to Irene Falcone, non-alcoholic drinks are becoming more sophisticated and mainstream – allowing more people to get comfortable switching to non-alcoholic drinks. Picture: Supplied

Ms Falcone said it probably wasn’t a coincidence that non-alcoholic drinks sales skyrocketed during the aftermath of the Covid-19 pandemic.

“I think Covid really made so many people focus on their health, and stop being so distracted by the nine to five grind and actually start looking after ourselves,” she said.

“So this movement is really a part of that.”

According to DrinkWise, an independent social change organisation, the growth of the zero alcohol movement is a “positive sign”.

“The increasing popularity of zero alcohol products is a positive sign that Australian consumers are making active decisions to cut back on their alcohol consumption,” DrinkWise CEO Simon Stahan said.

“It’s no longer just the choice for designated drivers either, with consumers opting for zero alcohol options to suit a range of lifestyle choices.”