Diageo acquires Ritual Zero Proof, launches Captain Morgan rtd

USA – Diageo North America has announced the acquisition of Ritual Zero Proof, a leading non-alcoholic spirits brand in the United States.  

The acquisition is part of Diageo’s broader strategy to capitalize on the growing demand for alcohol alternatives as consumer preferences shift towards healthier beverage options. 

Founded in 2019, Ritual Zero Proof has quickly become the top non-alcoholic spirit brand in the U.S. by offering alcohol-free substitutes for popular spirits such as whiskey, tequila, gin, and rum.  

The brand also offers an aperitif alternative, allowing consumers to recreate classic cocktails without the inclusion of alcohol.  

The brand’s founders, David Crooch, Marcus Sakey, and GG Sakey, developed the product line to capture the flavor, aroma, and complexity of traditional spirits without the alcohol.  

Their innovation reflects a significant shift in consumer behavior, with a growing number of people seeking healthier, alcohol-free beverage options. 

Diageo noted that the non-alcoholic category in the U.S. has grown at a compound annual growth rate (CAGR) of 31 percent over the past five years, with non-alcoholic spirits being the fastest-growing segment within adult beverages during that time.  

Additionally, 94 percent of non-alcoholic beverage buyers also purchase alcoholic drinks, highlighting the incremental value the non-alcoholic sector brings to the broader beverage alcohol market. 

Sally Grimes, CEO of Diageo North America, said: “We are delighted to welcome Ritual into our broader portfolio, where it will beautifully complement both our non-alcoholic offerings, as well as those with alcohol, and serve to present consumers with even more choice and variety.” 

This acquisition not only strengthens Diageo’s portfolio of non-alcoholic products but also positions the company to meet the increasing demand for health-conscious alternatives in the market.  

The acquisition of Ritual Zero Proof builds on Diageo’s earlier minority stake in the brand, acquired through its investment arm, Distill Ventures, in 2020.  

Distill Ventures, an accelerator for founder-led drinks brands, supports entrepreneurs as they scale and grow their products with Diageo’s backing. 

David Crooch, co-founder of Ritual, will now take on the role of General Manager for Diageo’s Non-Alcohol business unit, where he will oversee the expansion of the non-alcoholic portfolio across North America. 

Diageo, PepsiCo to launch rtd 

In parallel with the Ritual acquisition, Diageo has also announced a new partnership with PepsiCo to launch an alcoholic ready-to-drink (RTD) product combining Diageo’s Captain Morgan Original Spiced Rum with Pepsi Max.  

The RTD beverage, with an alcohol by volume (ABV) of 5%, is available in Great Britain at major retailers such as Tesco, Sainsbury’s, Morrisons, and Asda.  

The new product brings Pepsi into the alcoholic beverage category for the first time in Great Britain. 

Nuno Teles, Managing Director at Diageo Great Britain, expressed excitement about the partnership, stating, “With a shared emphasis on fun, our partnership with Pepsi Max brings together two iconic brands to create one epic taste that will inject excitement into the RTD category.” 

The Captain Morgan-Pepsi Max RTD drink is available in 330ml cans, 250ml slimline cans, and multipacks of six 250ml cans, retailing at an RRP of £2.59 (US$3.46) for the 330ml format. 

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