Title: Leveraging Tom Holland's Stardom for Dry January Campaign
Target is bringing Holland's non-alcoholic beer brand, Bero, to about 1,400 of its US stores this week. Bero will snag a key display on an aisle endcap, further boosting the sober-curious trend. Sales of non-alcoholic beverages surged 27% last year, reaching an $818 million category. Non-alcoholic beer, the largest category, fetched nearly $700 million in sales, increasing 25% compared to the previous year.
The surge in non-alcoholic beer sales can be attributed to shifting trends towards less or no drinking, especially among younger customers. In response, the US Surgeon General warned that alcohol is a "well-established, preventable cause of cancer" and suggested updated health warning labels for alcoholic beverages last week.
Holland, a celebrity who recently appeared on the cover of Men's Health with revealing photos, spoke openly about his struggle with sobriety and the creation of Bero, which debuted last October. Bero was designed to help people feel included in social situations marked by heavy drinking, particularly in Holland's home country, the UK.
Despite his fame, finding Bero has been a challenge for Holland's fans. John Herman, Bero's CEO and co-founder, revealed that the only complaint they've had is the lack of local availability. The Target partnership aims to address this issue by increasing Bero's reach.
Target has been capitalizing on the non-alcoholic adult beverage trend for a few years, partnering with online retailer Sechey in 2023 to add popular brands to 700 Target stores. Adding Bero is deemed by experts as Target's "next step in owning this category." Bero's premium packaging will help the beer stand out in a crowded market, according to Nate Rosen, a consumer packaged goods expert.
Beyond Target, Bero is sold on its website, select retailers like Sprouts Farmers Market and Total Wine and More, and at every Soho House US outpost. Bero is also set to be available on Amazon, which will help expand its reach in a competitive market dominated by well-established companies.
In 2024, Anheuser-Busch InBev was the largest brewer of non-alcoholic beer, accounting for 27% of sales in the category. Athletic Brewing and Heineken follow closely behind, with 24.9% and 23.5% shares, respectively. All three companies are expanding in the space, introducing new products to meet the growing demand for non-alcoholic beers.
Herman sees this as an opportunity for Bero, as it doesn't simply extend an existing beer brand and can establish its own identity. The non-alcoholic beer market accounts for just 0.7% of total alcohol sales at retailers, but experts predict significant growth in the future, driven by health consciousness, flavor innovation, and the zero-proof movement.
Key Enrichment Insights:
- The non-alcoholic beer market is projected to reach USD 20,536.0 million in 2024, growing at a CAGR of 7.9% from 2024 to 2034[1].
- Rising health consciousness and awareness of alcohol's negative health effects, namely liver damage and impaired cognitive function, are driving the growth of the non-alcoholic beer market[1][2].
- Consumers are also drawn to unique and exotic flavors in non-alcoholic beers, contributing to the market's growth. The zero-proof movement is also reshaping the market, making non-alcoholic beers more socially acceptable[1].
- The growth in online direct-to-consumer (DTC) channels and the inclusion of non-alcoholic beers on menus in bars and restaurants are important factors driving the market's growth[1].
- Specific regions like Germany and the UK are showing significant growth in the non-alcoholic beer market[1].
- Younger generations, particularly Gen Z and Millennials, are leading the growth in the no-alcohol beer category, opting for healthier drinking options[4].
The Target partnership is a significant step for Bero's business expansion, aiming to increase its availability in the US market. This move is expected to help Bero capitalize on the growing non-alcoholic beverages market, which saw a 27% surge in sales last year.
