On Wednesday, global beverage corporation Diageo announced its acquisition of Ritual Zero Proof Non-Alcoholic Spirits. According to a press release, the acquisition furthers Diageo’s Growth Ambition, the company’s strategic plan to achieve sustainable growth through fiscal 2025 and beyond. The move also positions Diageo as the No. 1 NA spirits player in the world, as the conglomerate now holds the leading market share position in the three biggest non-alcoholic markets globally.
Four years ago, Diageo purchased a minority stake in Ritual Zero Proof through Distill Ventures, which works in partnership with the corporation to financially and strategically support founders in launching, growing, and scaling up-and-coming drinks brands.
“We are delighted to welcome [Ritual Zero Proof] into our broader portfolio, where it will beautifully complement both our non-alc offerings, as well as those with alcohol, and serve to present consumers with even more choice and variety,” CEO of Diageo North America Sally Grimes said in the release.
Ritual Zero Proof’s portfolio includes a non-alcoholic whiskey, tequila, gin, rum, and aperitif. Since its founding in 2019, the Chicago-based brand has grown to be the No. 1 non-alcoholic spirits brand in the U.S., where the category has boomed in retail sales value by a 31-percent compound annual growth rate (CAGR) over the past five years, according to IWSR data. Ritual Zero Proof is also currently the sixth-largest NA brand in the world by value.
“This acquisition is proof of the mainstream potential of the category, and our shared ambition to make sure a non-alc cocktail is available on every menu and on every grocery and liquor store shelf,” Ritual Zero Proof co-founder Marcus Sakey said in the release.
Ritual Zero Proof co-founder David Crooch was recently awarded the position of general manager of Diageo Non Alcohol, tasked with spearheading the expansion of Diageo North America’s NA business unit. He will remain actively involved with Ritual Zero Proof’s operations, according to the release.
The article Diageo Acquires Ritual Zero Proof, the U.S.’ No. 1 Non-Alc Spirits Brand appeared first on VinePair.