Diageo eyes leadership in zero alcohol drinks

Diageo is aiming to be at the “front end” of the non-alcoholic drinks trend that is currently gaining momentum across the industry, the group’s CEO Ivan Menezes has said.

Ivan Menezes wants to lead the zero alcohol drinks movement, but said Diageo is not planning to move into soft drinks

His comments were made just weeks after Diageo announced its start-up investment scheme, Distill Ventures, has backed the “world’s first” distilled non-alcoholic spirit, Seedlip.

First launched in 2015, Seedlip is made using six individually distilled barks, spices and citrus peel, taking inspiration from the 1651 book The Art of Distillation.

Speaking to journalists following the publication of Diageo’s full-year financial results yesterday, Menezes said: “We definitely see that there are occasions when people want an adult drink that’s non-alcoholic.

“In Africa we have a big business with Guinness Malta and Guinness Zero in Indonesia. We want to be at the front end of this as we do see an opportunity when consumers want a choice of beverage that doesn’t have alcohol and we want to participate in this.

“With Seedlip, the pull is to drink it on the rocks while your friends are drinking alcohol.”

However, Menezes said Diageo will aim to “stay in the consumer space where our brands play”, and so does not have plans to move into the soft drinks market.

When Distill Ventures announced its investment in Seedlip, the unit’s co-founder Shilen Patel said the move made sense because it follows a business model close to that of an alcoholic spirits brand.

The investment marks the first time Distill Ventures has backed a non-alcoholic product.