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Constellation Brands invests in alcohol-free brand TÖST

Corona-owner and global alcohol manufacturer Constellation Brands has invested in premium alcohol-free brand TÖST as it seeks to tap into the growing demand for no- and low-alcohol drinks that offer “complex” flavours.

TÖST is a premium alcohol-free brand currently sold across the US and seven countries around the world in retail and foodservice.

Its sparkling drinks, packaged in glass bottles that resemble wine bottles, fill the space when consumers are looking for more than just carbonated water when they are not drinking alcohol, the company says.

‘Flavour-forward’ and clean label

Constellation Brands, which announced it had acquired a minority stake in the company this month, said the “flavour-forward” brand was a “strong complement” to its current portfolio given that 82% of non-alcoholic drink buyers are also still purchasing drinks that contain alcohol, according to data from Nielsen IQ.

The complex taste profile also met growing consumer interest in having a wider variety of flavour options across all drinks and extended the options and opportunity for participation on traditional beer, wine, and spirits occasions, it added.

TÖST products have a clean label ingredient list that features natural ingredients and botanical extracts. TÖST original is made from carbonated water, organic blue agave, white tea, white cranberry concentrate, natural ginger extract, natural citrus extract, natural flavours, citric acid, and quinine. It provides 11g of sugar per serving. It also makes a rosé sparkling drink.

According to the company, the products were formulated by a team of beverage and culinary experts to create a drink that has some of the characteristics often found only in alcoholic beverages.

‘A complex flavour profile’

Mallika Monteiro, executive vice president and chief growth, strategy, and digital officer at Constellation Brands, said: “Our investment in TÖST allows us to continue to optimize our higher-end portfolio by providing an alcohol-free beverage with a complex flavour profile for consumers that complements their lifestyle across a variety of occasions.”

Brooks Addington, TÖST CEO, said: "We are excited and humbled to have Constellation Brands as a partner in our mission to bring TÖST beverages to even more consumers,”. “We believe our mutual consumer-centric focus and desire to deliver premium product experiences positions TÖST for exponential growth in the coming years."

The billion-dollar NOLO category

The market value of low and no alcohol surpassed $11 billion in 2022, up from $8 billion in 2018, according to global beverage insights firm IWSR.

This is being driven by an increased interest in food and drink products that promote health and wellness. Sales within the no- and low-alcohol category – sometimes referred to as NOLO – are being fuelled by younger generations, particularly millennials and Generation Z consumers.

Data from the research company Nielsen showed that 66% of adults between 21-34 in the US were consciously reducing their overall alcohol consumption.

Multinational beer, wine, and spirit manufacturer Constellation Brands has operations in the U.S., Mexico, New Zealand, and Italy. Its beer brands include Corona Extra, Modelo Especial, Modelo Cheladas, Pacifico, and Victoria, while its fine wine and craft spirits brands include The Prisoner Wine Company, Robert Mondavi Winery, Casa Noble Tequila, and High West Whiskey.