Diageo Acquires Non-Alc Spirits Brand Ritual, Says Consumers Remain Cautious
September 26, 2024Diageo has acquired zero-proof spirit label Ritual, bolstering its presence in the growing non-alcoholic drinks sector. Financial details were not disclosed. Ritual, founded in Chicago in 2019, first attracted Diageo’s attention in 2020, when the spirits company took a minority stake through its Distill Ventures arm.
Ritual’s portfolio covers Tequila, rum, whiskey, aperitif, and gin alternatives, which each retail around $30 a bottle. “Ritual Zero Proof is the number-one brand in the fastest-growing adult beverage category, and meets growing consumer demand for a flavorful and sophisticated, yet accessible spirits alternative,” said Sally Grimes, CEO, Diageo North America.
The move comes amid a rapid period of expansion for non-alcoholic wines, beers, and spirits. Leading brands within the sector include Trinchero’s Fre, Athletic Brewing Company’s non-alcoholic beers, Diageo portfoliomate Seedlip, and Ritual itself. Following the completion of the acquisition, Ritual co-founder David Crooch will serve as general manager, Diageo Non Alcohol.
Meanwhile, Diageo offered an update ahead of its annual general meeting, with CEO Debra Crew saying, “The global environment remains challenging for both our industry and Diageo. While consumers continue to be cautious in this environment, we are focused on strengthening the resilience of our business through operational excellence, productivity, and strategic investments to win quality market share.”
Crew added, “I believe that the fundamentals for global TBA (total beverage alcohol), and particularly the spirits industry, remain strong and am confident that when the consumer environment improves, growth will return and the actions we are taking will position us well to outperform the market.” Diageo posted sales down 0.6% on an organic basis to $20.3 billion for the year through June, as operating profit fell 5% to $6 billion.
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