How Dry January Impacts Drinks Manufacturers

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Alcohol-free drinks gain momentum as supply chain struggles impact the market (Credit: TRIP)
As alcohol-free drinks gain momentum and shipping disruptions impact the market, we explore the impact of Dry January on beverage manufacturing

Alcohol alternatives continue to reshape drinking habits, with companies like TRIP leading the charge.

Co-founder Olivia Ferdi celebrated the brand's success on LinkedIn, describing it as "surreal" to partner with Dry January after selling two million units of TRIP drinks in the first week of 2025.

Olivia Ferdi, Co-Founder of TRIP

"TRIP is changing the game when it comes to alcohol alternatives and customer experience," she says.

"Product obsessed – we know that the number one reason people reach for a traditional boozy drink is to relax; creating a product that delivers a way for you to actually unwind in the moment and still feel included in social occasions."

This momentum reflects a broader shift in consumer attitudes. Research by Alcohol Change UK reveals that 32% of men in the UK plan to go alcohol-free this January, while 21% of drinkers intend to reduce their alcohol consumption throughout 2025.

Factors such as fitness, mental health and finances are driving this change.

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The rise of the non-alcoholic market

The growth of non-alcoholic options extends beyond the UK.

For instance, Molson Coors has made significant strides in expanding its non-alcoholic range in the US. Sales of its alcohol-free beer brands surged by 89% in the last 12 weeks of 2024. The company now holds a 2.1% share of the rapidly expanding alcohol-free beer market, according to NIQ data.

Meanwhile, Heineken has observed a consistent rise in the non-alcoholic beer sector. In a 2023 presentation, the Dutch brewer pointed out that alcohol consumption among Gen Z has dropped by 25% over the past four years.

Additionally, only 8% of young legal-age drinkers in England consume alcohol on a weekly basis, a sharp decline from 50% a decade ago.

Taste continues to be a crucial factor in winning over consumers. Guinness, a brand that has faced its own supply and demand challenges recently, has focused on ensuring its non-alcoholic product, Guinness 0.0, mirrors the iconic taste and appearance of the original.

Steve Gilsenan, Guinness’ Global Head of Quality at Diageo

 “For us, the taste and the visuals of how Guinness is poured, how it’s surged, how it settles and how it is presented – that has to be the same for going for Guinness 0.0," says Steve Gilsenan, Guinness’ Global Head of Quality at parent company Diageo.

“When we do blind tasting [between Guinness and Guinness 0.0] … where you get the two glasses side by side, they look identical, they surge identically … people have really struggled to tell them apart.”

How supply chain pressures shape drink manufacturing 

Despite the growing demand for alcohol-free beverages, the global drinks industry is grappling with significant supply chain challenges.

Shipping disruptions have severely affected production and distribution, with goods worth US$24bn stuck at Californian ports. Many distilleries, both large and small, are struggling to secure essential materials such as packaging bottles, cartons and even raw ingredients.

This situation has resulted in notable shortages. One bar owner in New Orleans recounts how his team had to remove Green Chartreuse from their menu due to supply issues.

“Grapefruit has been gone from wholesalers, which is affecting our pour costs because we’re buying from the grocery store,” he adds.

David Begg, Founder of Real Drinks Co

David Begg, Founder of Real Drinks Co., highlights the pressure on UK businesses: “The impact on shipping charges and all the other elements is dramatic, especially at a time when consumer pressures are to spend less and look for improved pricing.

“But we have advantages in that we are growing very fast. We are gaining the benefits of scale – for bottle purchasing, we’re buying in bigger volumes and we’re able to move from supply chain routes to other supply chain routes.

"Yes, we’re getting price increases but we’re managing to mitigate them somewhat.”

Changing cultures create new opportunities

As Dry January enters its 11th year, participation continues to grow. What started in 2013 with 4,000 people has expanded to more than 175,000 participants by 2023.

To promote the challenge, Alcohol Change UK has enlisted football legend Neil Ruddock, whose own health journey has included a reassessment of his relationship with alcohol.

In a new film, Neil joins former Wimbledon FC player Fraser Franks and commentator Jay Motty to explore shifting drinking cultures and the impact of alcohol in football.

Dr Richard Piper, CEO of Alcohol Change UK

Dr Richard Piper, CEO of Alcohol Change UK, believes the trend toward alcohol-free living is here to stay. “More of us are connecting the dots between the alcohol we drink and the impact it has on our health, wellbeing and quality of life.

"From poor sleep, headaches and hangovers, to spending more money than we'd like or struggling to work, our research provides a strong picture of the reasons why so many of us are ready to rethink our relationship with alcohol."

As the alcohol-free movement grows, companies and consumers alike are navigating supply chain hurdles while finding innovative ways to meet new demands.


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