Anora strikes a balance

As part of its mission to build a sustainable and responsible modern drinking culture, Anora is setting a leading example with its range of alcohol-free and ready-to-drink products.

While consumers focus on their health and wellbeing, there are opportunities for growth in the low- and no-alcohol space, with spirits producers innovating with new products that cater to health-conscious drinkers.

One company seeking to shake up the low-and-no space is Nordic drinks group Anora, which is focusing on growing its alcohol-free and ready-to-drink (RTD) portfolio as part of its 2030 strategy. Data from IWSR Drinks Market Analysis shows the RTD sector is set to rise by 12% between 2022 and 2027 in 10 markets. The value of the RTD category is predicted to reach US$40 billion by 2027.

“As part of Anora’s sustainability strategy we are dedicated in increasing our low-ABV and non-alcoholic portfolio, providing consumers with great-tasting low-ABV options and supporting modern, responsible drinking culture,” says marketing director Suvi Reinikkala. “We see great interest towards RTDs driving that momentum.”

The Nordic company took its first steps into the hard seltzer category in 2018 with its sugar-free Koskenkorva Vichy Vodka Seltzer range of 4.5%-ABV expressions. The move came after local regulations in Finland had changed to allow ethanol-based products of up to 5.5% ABV to be sold in the retail channel.

Anora extended its hard seltzer line in 2021 with the creation of SAY Hard Seltzer, which has since expanded to include three 4%-ABV products, alongside a zero-ABV variant.

With SAY and Koskenkorva Vichy Hard Seltzers, Anora is well positioned to make its mark in the lower-ABV seltzer category, which is projected to experience the highest compound annual growth rate (CAGR) of 14.5% between 2022-2031 (Allied Market Research 2023).

As well as working on lower-ABV options, Anora has also expanded its non-alcoholic offering through an alcohol-free line extension for its O.P. Anderson aquavit.

In August 2022 the group expanded its portfolio when it acquired a minority stake in Danish non-alcoholic company ISH for €5 million (US$5.2m). The ISH portfolio includes its non-alcoholic London Botanical Spirit, Caribbean Spiced Spirit, and Mexican Agave Spirit. ISH also produces non-alcoholic wines and cocktails.

Non-alcoholic beverages are the fastest-growing segment in the beverage industry, Anora said. While still a small category compared with the global market of alcohol, the volume of non-alcoholic ‘spirits’ is estimated to grow at a 15.5% CAGR between 2021–2025, according to Euromonitor data.

For Anora, the non-alcoholic category offers not only an interesting growth opportunity but is also part of its sustainability efforts.

Anora believes in building a sustainable, modern drinking culture that follows the group’s purpose of ‘Let’s drink better’ by creating a broader range of high-quality alternatives that allow everyone to join the celebration.