Diageo has made its first investment in a U.S.-based nonalcoholic beverage by acquiring a minority stake in Ritual Zero Proof, a Chicago-headquartered company.
The investment comes through Distill Ventures, a Diageo-funded incubator focused on smaller companies in the beverage industry. Ritual, which launched in September, sells Ritual Zero Proof Gin Alternative and Ritual Zero Proof Whiskey Alternative, two alcohol-free products that the company claimed “echoes the taste and smell of spirits.” The financial details of the investment were not disclosed.
“We are excited to support such an interesting new brand in the vibrant nonalcoholic space,” said Eugene Khabensky, ventures director at Diageo, which has its North American headquarters in Norwalk. “We put the consumer at the heart of our business, and Ritual Zero Proof is a fantastic offering that provides consumers with more choices of the highest quality.”
“This is a movement,” said Marcus Sakey, founding partner and chief brand officer of Ritual Zero Proof. “Just like almond milk and veggie burgers, spirit alternatives are changing the landscape. In 18 months, we predict nonalcoholic options will be on every menu and the shelves of every grocery store. Americans want more choice, and Ritual Zero Proof is all about more ”“ more flavor, more moments, more life, that is. It”™s the only American-made spirit alternative to echo the taste, smell and burn of a spirit ”“ without the alcohol or calories.”
