CleanCo is among the fastest-growing brands that do not contain alcohol. It will launch into the American market with its exclusive collection of booze-free rums, vodkas Gins, vodkas, and RTDs across the Atlantic.
This U.K. label’s American launch marks the first initiative by Demeter & C.O., a brand new beverage alcohol company led by Jim Clerkin, former CEO of the Americas for Moet Hennessy, and Jeff Menashe, founder CEO of Demeter Advisory Group.
CleanCo was established in 2018 when the founder Spencer Matthew noticed a lack of suitable alternatives to alcohol, specifically ones that could be used for the full strength spirits. Using a complicated distillation technique that replicates the mouthfeel of standard proof spirit, CleanCo currently has an assortment of full-strength and no-ABV alcohols, ranging from Tequila (Clean T) gin to dark rum and flavored vodka. It also offers two distinct RTDs, including ‘rum’ colloids and ‘gin’ tonics. The canned versions will hit consumers in the U.S. at the end of 2022.
The brand is set to launch 50,000 nine-liter bottles in both the U.K. & U.S. in 2021.
The reality is that Demeter & Co, a beverage alcohol manufacturer, has launched with a zero-proof label is a evidence to the strength of the non-alc sector.
Based on Nielsen data, the nonand low-ABV industry has grown by 506% over the last year, and further data suggests that the non-alcoholic market (including soft drinks) reach $280 million in sales in the coming year. In the U.S. alone, the drinks analytics firm IWSR estimates low and no spirits sales to increase to $1 billion in 2025. Forecasts of sales for the no-and-low global overall category are predicted to hit $74 billion by 2025, equivalent to 6.2 percent of all global alcohol consumption. The annual growth rate for this category is projected to reach 7.1 percent in 2025.
“The younger generation is looking to spend money on experiences they will remember forever,” says Matthew. There are many more thrilling activities to enjoy than getting drunk. It’s a change in generational in addition, thanks to the growth of social media, consciousness is becoming more mainstream. I believe that most people are paying more attention to their health than they did just a couple of years ago. CleanCo is not anti-alcohol, but I think everyone should recognize or be interested in drinking lower amounts of alcohol.”
In general, no alcohol has outpaced those in the lower alcohol segment. In the ten major markets, the category of no-alcohol has risen +4.5 percent between 2019 and 2020. Meanwhile, the low-ABV piece slowed by -5.5 percent.
“Citing facts, our study showed that young drinkers weren’t stopping drinking, but we’re moving towards moderation and alternative alcohol,” says Clerkin.
The transition to a new market can be a learning curve. We’re targeting a different need within North America,” says Matthews. “We’re specifically targeting those who like alcohol and drink, those who want to drink more and have more enjoyment. This is a completely different message than our first campaign in the U.K. that was focused on socialism and later moderate drinking.”
“There’s an influx of new culture,” says Menashe.
Perhaps the most popular spirit in England, Gin has been the center of U.K. marketing initiatives; CleanCo will emphasize tequila in the North American market.
“There’s nothing best in the world than that can capture the imagination of consumers, thinking about how to make the role of the liquor and connect people around an ideal lifestyle. Tequila has succeeded quite well as a brand,” says Menashe. “The spirit is available here, and not just as a beverage that is perfect for sipping, but also as a product that can be used to traditional drinks.”
The category of tequila saw massive growth in the aftermath of the pandemic, increasing by 46 percent over 2020. Patron specifically experienced an increase of 52% in volume growth from the middle of March 2020. Codigo had risen by 94% over a year.
Clerkin and Menashe lead the company; Demeter & Co will create brands from scratch and bring new brands, such as CleanCo, to America. American market.
“By making use of the most advanced information about consumers that we’ve invested a lot in, we’ll discover whitespace and fresh opportunities,” claims Clerkin through Zoom. The company has formed a partnership with Southern Glazer to distribute CleanCo and Demeter & Co’s upcoming collection of brands.
“CleanCo offers two distribution strategies including direct-to-consumer and wholesale,” Menashe says. Menashe. “That’s intriguing to us since the company is investing in a new digital model that we are adamant about. We’re also thrilled to see that Southern Glazers, the largest supplier of alcohol from beverage sources, recognizes that it’s the perfect time to launch this N.A. segment.”
“With Demeter & Co, we are looking to create brands that can evolve with the times similar to what Clean Co is,” Clerkin says. Clerkin. “The business has been accommodating for us. We are now looking to collaborate with people whom we admire and are looking to change the ways we build companies.”
“Simply simply put, we’d like to be a part of the culture and industry,” says Menashe.
