Why Alcohol Free/Non Alcoholic drinks are often as expensive as the alcoholic version 

In recent years, we've witnessed an exciting surge in popularity for alcohol-free (AF) beverages. With more and more people embracing a sober curious lifestyle or choosing to moderate their alcohol intake, the AF drinks market has blossomed, offering a variety of options that mimic the taste and complexity of their alcoholic counterparts.

However, a common question often arises – why do these drinks cost as much as, and sometimes even more than, their boozy equivalents? The question is understandable. After all, without the 'taxable' component, i.e., alcohol, shouldn't these drinks be cheaper?

The answer is not that simple, and the reasons behind the pricing of these drinks are multifaceted, involving factors from production costs to economies of scale.

Understanding the Alcohol Free Drink Production Process 

Firstly, it's important to clarify that the production of AF beverages is not as straightforward as simply removing alcohol from the equation. The process is complex and involves creating a drink that can mimic the texture, mouthfeel, and taste of its alcoholic counterpart without the 'buzz'. This demands a careful selection of ingredients and a meticulously crafted process, which at ANON Drinks, we are passionate about. Often in the alcoholic version it is easier to and cheaper to have alcohol in, as the flavours are imparted during the distillation process. In many AF versions they are produced in the same way with the additional process of alcohol being removed after.

Our journey to creating each bottle of Alcohol Free drink begins with sourcing the right ingredients. We aim for natural flavourings and extracts that can help us achieve a rich and unique flavour profile. However, these ingredients don't come cheap. Opting for high-quality ingredients is a conscious choice we make to ensure a premium product. This pushes our products into the premium space, and that's reflected in the price.

Economies of Scale and the Artisan Drink Factor 

Next, we need to consider the concept of economies of scale. Larger alcoholic drink producers often have the advantage of producing vast quantities of their product, helping them save on costs per unit. The AF market, still emerging, is full of small, artisanal brands that may not have the same leverage. Moreover, supermarkets are always keeping beer and wine prices artificially low to drive footfall to their stores. They then give plenty of real estate to the ‘drinks aisle’. The smaller artisans struggle to get this prime retail space, so sales volumes remain lower, and the same advantages of economies of scale are not felt. 

At ANON Drinks, we pride ourselves on being an artisanal brand that focuses on quality over quantity. Each batch we create is given our full attention to ensure consistency in taste and quality. However, this attention to detail and refusal to compromise on quality means we don't enjoy the same economies of scale that larger, mass-produced brands do.

The True Costs of Alcohol Free Drinks 

When talking about the price of AF drinks, it's crucial to factor in all costs involved. Beyond the production process, there are packaging, distribution, and marketing costs. Glass bottles, transportation, and marketing efforts all add up, contributing to the final price of the product.

Additionally, fixed overheads like rent on a distillery, salaries of employees, and other operational costs also play a part. In essence, most of these costs mirror those of producing alcoholic beverages.

The Value Proposition of Alcohol Free Drinks 

It's vital to understand the value proposition of AF drinks. These beverages are more than just 'drinks without alcohol'. They represent a shift in lifestyle and a conscious choice for many who enjoy the ritual of a well-crafted beverage but choose to abstain from alcohol.

The cost of AF drinks is not about what's missing - the alcohol, but rather what's included. Each ingredient is meticulously chosen, each step in the production process is carefully undertaken, and each bottle is crafted with passion and dedication. The result is a drink that allows you to participate in social rituals, enjoy sophisticated flavours, and do so in a manner that aligns with your choices and lifestyle.

It's a value proposition that we at ANON Drinks are proud to offer. We believe that the rise in popularity of AF drinks and the willingness of consumers to pay for high-quality, alcohol-free alternatives is a sign of a broader shift in society. It's a shift towards conscious consumption, a focus on wellness, and a desire for inclusivity.

AF drinks offer the complexity, the flavour profiles, and the social enjoyment associated with alcoholic drinks, but without the adverse effects of alcohol. They stand for inclusivity, allowing everyone, regardless of their choices regarding alcohol, to enjoy a sophisticated, adult drink.

Like anything though as something gets more popular the costs can come down.  New products are expensive to launch to market but over time a return on investment is made, and costs start to reduce.

Summary

In conclusion, the cost of non-alcoholic drinks is not merely a reflection of the lack of alcohol. It's a testament to the quality of ingredients, the painstaking production process, the careful packaging, and the entire journey that each bottle takes from our distillery to your glass. It's a price we pay for embracing a lifestyle choice that promotes inclusivity, wellbeing, and a love for well-crafted beverages. So, next time you savour your favourite non-alcoholic drink from ANON Drinks, remember the journey it has taken to reach your glass. Each sip is more than just an alcohol-free alternative; it's a testament to innovation, creativity, and a commitment to providing you with a premium, flavourful experience.

So, let's raise a glass (a non-alcoholic one, of course) to this shift, and to the continued growth and success of the AF market. Because enjoying a drink doesn't always have to mean having alcohol, and at ANON Drinks, we're here to ensure that your alcohol-free choices are just as enjoyable, just as sophisticated, and just as celebratory. 



Julian Ebbutt

ANON Drinks Aug 2023