How breweries are tapping into alcohol-free beer market

There’s a quiet revolution happening right under our noses. In cans. Often emblazoned with slogans, like “too good to be wasted”, “drink, not drunk” and “drink wise without compromise”. Craft breweries are tapping into alcohol-free beer, a small but booming part of the booze market fuelled by the wellness movement, declining drinking rates and brew lovers’ burgeoning desire for, to borrow another marketing line, “beer without the hangover”. In the past 12 months, sales of non-alcoholic drinks at liquor behemoths BWS and Dan Murphy’s have doubled, with beer the biggest slice of that growing pie. Carlton and United Breweries have made more than one million cartons of Carlton Zero since launching the brand a mere three years ago. But the real excitement, if not total sales, is in the craft sector and, in particular, dedicated non-alcoholic beer companies such as Heaps Normal, which has doubled production every second month since launching in July last year. The east coast brewers’ flagship beer Quiet XPA can now be found in more than 600 venues and shops around Australia, including West Leederville outlet Besk where it’s in the top five sellers — alcoholic or not. “It’s going great,” co-founder and head brewer Ben Holdstock says from Sydney. “To be honest, it’s exceeded our expectations. “I thought it would be a bit of a slow burn but it’s been crazy. “It’s been really exciting seeing people pick it up and reach out expressing how much they’ve been waiting for something like this.” Holdstock started Heaps Normal with mates, Canberra-based chief executive Andrew Miller and head of brand Peter Brennan, who lives in Sydney. Their brand ambassador and partner, international surfer Jordy Smith, is based in LA. Their beer is contract brewed at Melbourne’s Brick Lane, but the foursome have plans to establish their own facility in Sydney. Holdstock, who has worked for NSW breweries 4 Pines, The Grifter and Young Henrys, explains that each partner has their own reasons for turning to alcohol-free beer. “We all wanted to cut back but still be able to enjoy a beer socially that actually tastes good,” the 37-year-old explains. “We didn’t want to make a brand that was overly preachy around sobriety — none of us are actually sober — but instead focus on giving people a really good choice out there in the market.” Despite their rapid growth, Heaps Normal won’t branch out into alcoholic beers, according to Holdstock. “We just want to focus on that mission (to drive) positive change to the drinking culture here in Australia”. SMASHING STEREOTYPES Aboriginal-owned Queensland company Sobah Non-Alcoholic Beverages began with a desire to break down the stigma of socialising sober and smash negative stereotypes of Aboriginal and Torres Strait Islander people. After pouring their home brewed beers infused with Indigenous ingredients, such as pepperberry, finger limes and wattleseed in their food truck, husband and wife team Clinton and Lozen Schultz (both non-drinkers) launched commercially in 2017. While they “fumbled in the dark” with the business side of production and distribution, Clinton Schultz (a psychologist and academic by profession) said consumer demand for their intriguing blends of “bush tucker” and alcohol-free beer has made Sobah a success. “People drink our beer because it’s packed full of flavour and there isn’t anything else on the market to compare it with,” Schultz says. “We certainly don’t do ‘normal’.” While brands such as Carlton Zero and Heineken 0.0 have been on the scene for years, AF beers are relatively new to the craft market. WHAT’S THE POINT? “What’s the point?” That’s the question the Heaps Normal team hear most from craft beer lovers. However, Holdstock adds, once they try Quiet XPA many have to admit they actually like it. Advertised as “less than 0.5 per cent”, Quiet XPA sits at around 0.4 per cent. Holdstock explains that he uses a special yeast that creates a “restricted fermentation” that produces less alcohol. “We don’t take anything out,” he says. “We’re not filtering, we’re not heating and it still tastes like a real, normal beer.” The most common complaint about non-alcoholic beer is the lack of mouthfeel. “Getting the balance right, the body and mouthfeel right without the alcohol is probably the biggest challenge,” Holdstock agrees. “You can easily make it too thin or go too far the other and make it too sweet. That’s a challenge for sure.” THE RISE OF BIG DROP Another fast-growing alcohol-free brewing company in London-based Big Drop gets around that challenge by adding lactose to their range. “You cannot get away from the fact alcohol gives you body and mouthfeel in a drink,” founder and CEO Rob Fink explains from his home in Ipswich, England. “You either compensate for that in some way, or you don’t and what you’re left with doesn’t have (good texture).” The former lawyer has a familiar tale of why he got into booze-free beer. Six years ago, he became a father for the first time and decided to take a break from drinking. Catching up with mates down the pub meant sipping on soft drinks or orange juice, while alcohol-free macro lagers such as Becks Blue did not appeal. So, in 2016, with an old mate from his cover band days around Ipswich, Fink launched Big Drop with a simple mission. “There’s always been non-alcoholic beer, it’s just never been very good,” he says. “We’re going to make it good. “We’re going to do for non-alcoholic beer what craft beer did for beer. We’re going to make it interesting, give you some choice and make it flavoursome.” Big Drop uses different types of grain to make their brews more interesting. The hop-driven Paradiso IPA is on track to replace the Pine Trail Pale Ale as the biggest seller in a relatively diverse portfolio ranging from lager to stout. The company contract brews out of Chicago, Toronto and, since August last year, Melbourne. “Big Drop seems to work in markets where there’s been a craft beer revolution, and that’s why we looked to Australia,” Fink says, adding that he expects to crack “seven-figure revenue” on a 12-month basis in Australia by the end of the year. ON THE BANDWAGON That’s incredible growth, no wonder big independent brewers are leaping on the bandwagon. Melbourne’s Dainton Brewery launched their 0.9 per cent New Age IPA, Sydney’s Modus Operandi is doing well with their Nort Refreshing Ale (less than 0.5 per cent) and Adelaide-based Pirate Life has Point Nine cans. Pirate Life brewer Lewis Maschmedt worked on the 0.9 per cent beer for two years to get the right balance of flavour and product stability. Given the South Australian brewery was launched by three West Aussies in 2013 with a big, hoppy double IPA at 8.8 per cent, epitomises the shift in drinking habits. “In the past with craft beer, we’ve been trying to put more and more alcohol into our beers,” Maschmedt says from Pirate Life’s Port Adelaide brewery. “That’s been the challenge … now, it’s going the other way. “If you have three of these beers, you’re not even going to feel like you’ve had one pale ale. “It’s sort of channelling those soft drink companies that have ‘lower sugar’ rather than ‘no sugar’,” he adds, “because we still want to get the flavour, you still want to get the experience of having something you enjoy drinking.” With around half the calories of their equivalent styles, alcohol-free beers also appeal to drinkers watching their weight. “People are more conscious,” Fink says. “That doesn’t mean you don’t eat meat sometimes. It doesn’t mean you don’t lay on the sofa and watch Netflix all day. “But on other days, you’re a bit more mindful. We’re plugging into that.” SIMON COLLINS’ VERDICT... When they said alcohol-free beer, I misheard and thought they were giving it away. Once that was cleared up, I asked myself, “what’s the point of a less than 0.5 per cent beer?” Previous dalliances down the low or no-booze end of the spectrum had left me wanting (specifically, a proper beer) so I had hopes lower than the ABV on these tinnies. Turns out, I was pleasantly surprised and even discovered a handful I’d crack if I ever decide to stop treating my body like the party scenes of Animal House. BIG DROP PARADISO IPA Wow. Big aromas from a quintet of hops made this an instant hit, then the tropical taste sealed the deal. Big Drop uses lactose to boost mouthfeel yet this still lacks texture. That said, the flavour is spot-on enough to make this the booze-free beverage for IPA lovers. SOBAH PEPPERBERRY IPA While the promised “hot and spicy” kick from the fruit of native pepperberry trees was more an earthy warmth, this ale offered vibrant flavours and aromas. Bold, tasty and more-ish, and definitely a beer. PIRATE LIFE POINT NINE Still only 0.3 of a standard drink, Pirate Life’s foray into ultra-lights is a dry, crisp ale with decent hop profile but still that tell-tale lack of mouthfeel. Driving? Drink this. HEAPS NORMAL QUIET XPA Citrus aromas and a cloudy visage fooled my brain into thinking this market-leader was a wheat beer. Decent bitterness, which shifted towards sweeter flavours as the brew settled. One to drink very cold on a hot day. ALCOHOL-FREE ONLINE STORE FREE SPIRIT’S BEST-SELLING BEERS (freespiritdrinkco.com.au)