(Photo: LVMH)
The Wall Street Journal reported on Tuesday that LVMH, the French conglomerate behind Hennessy Cognac and Moët & Chandon Champagne, is finally getting into the alcohol-free spirits game.
LVMH has reportedly bought a 30% stake in French Bloom, an upscale nonalcoholic sparkling wine producer that sells products in the $40 to $120 range. If you're wondering whether consumers are willing to pay premium prices for booze-free bubbles, let the figures speak for themselves; the brand is on track to sell nearly 500,000 bottles by the end of the year.
French Bloom was founded in 2021 by Constance Jablonski and Maggie Frerejean-Taittinger, the latter of whom is a descendant of the Taittinger Champagne family. The brand touts itself "as a tribute to the contemporary party in all its facets."
LVMH's investment in that "contemporary party" could pay out big returns if the market continues on its current trajectory. Thanks to wellness trends like Dry January, the global non-alcoholic spirits category is projected to reach $706.3 million by 2033. As of last year, it stands at $325.8 million.
“There’s a huge demand for quality products without alcohol,” David Serre, Moët Hennessy’s strategy chief, told the Wall Street Journal. “It’s been clear to us for a few years, but we hadn’t found the right opportunity.”
Rival companies have been quick to pick up on the change of pace. Last week, British beverage giant Diageo acquired Ritual Zero-Proof, the largest producer of nonalcoholic spirits in America. Elsewhere, household names like Heineken, Budweiser, Guinness and Samuel Adams have introduced zero-ABV iterations of their flagship products.
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While some have welcomed this genre, sometimes dubbed "alternative spirits," with open arms, others have raised concerns about the steep asking price. White Claw made headlines in January with the introduction of a 0%-ABV seltzer that retailed at $10.99 for a 6-pack — roughly the same cost as its 5%-ABV hard seltzers. Some wondered why they shouldn't just buy a LaCroix.
The industry is still figuring out the answer to this question. You'll find leading nonalcoholic spirits like Seedlip and Almave retail their products at around $40 a bottle, while other brands — notably the low-ABV Punta Santos Tequila — feel comfortable charging over $100.
Time will tell if ultra-premium ventures like French Bloom can convince consumers of the difference.
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