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Diageo acquires Ritual Zero Proof
Drinks giant Diageo adds Ritual Zero Proof to its stable of non-alcoholic brands, which already included three of the five largest globally by value.
After acquiring a minority stake through its brand accelerator Distill Ventures in 2020, Diageo announced today (25 September) that it has fully acquired Ritual Zero Proof Non-Alcoholic Spirits (Ritual).
The move bolsters Diageo’s investment in no- and low-alcohol alternatives after increasing its ownership in Seedlip in 2019.
“Ritual Zero Proof is the number-one brand in the fastest-growing adult beverage category, and meets growing consumer demand for a flavourful and sophisticated, yet accessible spirits alternative,” said Sally Grimes, CEO Diageo North America. “We are delighted to welcome it into our broader portfolio, where it will beautifully complement both our non-alc offerings, as well as those with alcohol, and serve to present consumers with even more choice and variety.”
Ritual was founded in 2019 in Chicago, Illinois, by David Crooch, Marcus Sakey, and GG Sakey. The line was created to give consumers a simple way to enjoy their favourite cocktails without alcohol, and today, the brand offers alternatives to whiskey, Tequila, gin, rum and apéritifs, all of which can be substituted one-to-one with traditional spirits.
“From day one, we’ve set out to create an iconic brand in the drinks industry, specifically designed to meet the needs of the modern consumer,” Crooch said. “Ritual brings this mission to life, and Diageo understood that from the get-go. With the continued and widespread growth of the category, there is significant market presence and consumer demand. Ritual has the ability to meet consumer desires and tastes.”
In the US, the non-alcoholic category has grown retail sales value by a compound annual growth rate (CAGR) of 31% over the past five years, and is the fastest-growing segment within adult beverages over that time. Ritual is the number-one selling non-alcoholic spirit brand in the US, according to a 2023 IWSR Drinks Market Analysis report, and Diageo now holds the leading market share position in the three largest non-alcoholic markets globally, including the US.
“When we first invested in Ritual, the non-alcoholic landscape in the US was nascent, but our insights told us the consumer was there and ready,” Distill Ventures CEO Heidi Dillon said.
Crooch will remain involved with the brand, and has been named general manager, Diageo Non Alcohol. This acquisition is in line with Diageo’s strategy to acquire high growth brands in exciting categories. It has been funded through existing cash resources.
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