Dive Brief:
- Sèchey, a brand and nonalcoholic online marketplace, has expanded its concept nationally into nearly 700 Target stores, according to details emailed to Retail Dive.
- Curated by Sèchey founder Emily Heintz for the adult beverage aisle at Target, the collection of alcohol-free beer, wine and spirits includes brands De Soi, Edna’s, Free AF, Ghia, Kin Euphorics, Mingle, Mocktail Club, Starla and Surely, as well as Sèchey’s line of “dealcoholized wines,” per the company.
- A Sèchey x Target holiday pilot program was created in time for dry January 2024 in all stores with adult beverage licenses. That pilot led to the permanent launch of nonalcoholic and functional beverages in Target’s adult beverage aisle this month.
Dive Insight:
The latest collection with Sèchey helps cement Target’s commitment to building out its low alcohol and nonalcoholic assortment.
Heintz, who launched Sèchey in 2021, came up with the idea for her business after experiencing her first dry January in 2019. “I assumed that if I was examining my relationship with alcohol, others might also want to celebrate, socialize, and connect with alternative beverages,” Heintz said in an email. “We’ve evolved Sèchey from a destination for alcohol-free options into a brand fueled by the no/low moment.”
The no- and low-alcohol beverage space has been heating up in recent years, with players like Athletic Brewing leading the charge. The category topped $11 billion globally in 2022 and is forecast to post a compound annual growth rate over 7% through 2026, according to data from IWSR.
“Alcohol-free beverages and nonalcoholic beverages, two different categories classified by the FDA, are exploding in popularity and experiencing huge growth, albeit from a low base,” Sean Ryan, head of the CPG sector at Kearney, said in an email. “Health conscious, ‘better for you’ consumption and authentic experiences have been a distinguishing element of millennial and Gen Z culture for some time. I’ve heard alcohol referred to as ‘boomer technology’ by these younger generations — a powerful image that when combined with vastly improved product innovation turns Sober October into a four season experience – and the stuff tastes better and better with each innovation cycle.”
The alcoholic beverage industry saw a spike during the pandemic, but demand is beginning to level off, impacting traditional alcoholic beverage companies, according to Ryan. In turn, those companies are seeking ways to remain relevant with consumers. White Claw earlier this year launched a line of nonalcoholic beverages. Molson Coors last year also launched a nonalcoholic ready-to-drink line of cocktails.
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