By Nicole Di Tomasso
As the calendar rolls over to a new year, bar and restaurant operators are continuing to focus on creating well-rounded adult beverage menus that meet the changing needs of consumers across all categories. Whether consumers are avid drinks, sober, sober-curious or simply want to reduce their alcohol intake, they’re still eager to socialize, celebrate and share experiences. As a result, operators are stirring up experiences to ensure everyone feels welcome and seen at their establishments.
No- and Low-ABV Beer/Spirits
The no- and low-alcohol category value surpassed USD$11 billion in 2022, up from USD$8 billion in 2018, according to IWSR Drinks Market Analysis, which examined markets in Australia, Brazil, Canada, France, Germany, Japan, South Africa, Spain, the U.K. and the U.S. The pace of growth is expected to surpass that of the last four years, forecasting volumes to grow at a compound annual growth rate (CAGR) of seven per cent in 2022-26, compared to five per cent in 2018-22.
Non-alcohol products are spearheading overall category growth, according to IWSR’s data. Specifically, no-alcohol beer/cider is expected to contribute nearly 70 per cent of the overall no/low-alcohol growth between 2022 and 2026.
In September 2023, Guinness 0 non-alcoholic draught touched down in Canada. “We recognize that [consumers] want to enjoy the distinctive taste of Guinness that’s non-alcoholic,” says Nadia Niccoli, head of Marketing, Canada, Guinness (Diageo Canada). “Guinness 0 provides them with a solution that delivers all the flavour and character they expect, making it a great choice for those seeking non-alcoholic alternatives,” adding that the alcohol is removed through a “cold filtration process, which allows the alcohol to be filtered out without presenting thermal stress to the beer to ensure it retains its taste and quality.”
With the exception of beer, spirit producers are catching up to the pace of innovation. Seedlip products, which has claimed to be the world’s first distilled non-alcoholic spirits brand, “[are] made primarily from herbal distillates and doesn’t contain mood-lifting adaptogens or other derivatives,” says Niccoli.
Currently, Seedlip cocktails are available on menus at Earls, Moxies and Rec Room, as well as a number of premium establishments such as Fairmont properties, Eataly, Terroni, BarChef, A Toi and Atwater Cocktail Club.
ZERO Cocktail Bar, Toronto’s first sober bar founded by Gail Lynch, soft launched in 2021 as a pop-up and its brick-and-mortar location opened in 2023. The base of many cocktails are non-alcoholic spirits and botanicals by Lyre’s Solbru, Sobrii-0, SexyAF, Drink Monday and many more. Fruits, vegetables and spices are sourced locally from fruit markets and many of the herbs used, such as mint, parsley and basil, are grown in Lynch’s garden or community gardens, according ZERO’s website.
On the west coast, husband-and-wife duo Racquel Foran and Jim O’Connor opened B.C.’s first booze-free beverage room and bottle shop, Beeves. The store and lounge offers more than 300 types of non-alcoholic products, including beer, wine, spirits, liquors and pre-mixed mocktails.
As part of the larger health and wellness movement, Generation Z and Millennial consumers are continuing to propel this trend forward.
The Sweet Alliance
Sweet and creamy cocktails make a great way to cap off a great meal or any time someone wants to satisfy their sweet tooth. And, while infusing alcohol with desserts isn’t a new concept, consumer desire for creative cocktails, combined with an Instagram-fuelled fascination for food, has promoted a range of new spiked sweets.
Reign Dessert Cafe in Markham, Ont. specializes in alcohol infused ice cream made fresh in-house, including Too Fire, made with Fireball, dulce de leche and cinnamon; Hennything For You, infused with Hennesey, dulce de leche and gold flakes; and Rum Forest Rum, made with matcha, sweetened condensed milk and rum.
“Even though consumers have become more health conscious and consider no- and low-ABV (alcohol by volume) drinks, they still want to indulge in dessert,” says Brian Loukmas, VP of Innovation at Monin — a company that manufactures and distributes a wide range of syrups, fruit purées, liqueurs and sauces, which are used to flavour food and drinks in restaurants, bars and cafés. “They crave bolder and sweeter flavours. If an espresso martini is performing well at a bar or restaurant, the operator might want to revamp their offering with a s’mores or chocolate martini, for example.”
Additionally, Perth, Ont.-based Top Shelf Distillers launched its Taste of Canada Dessert Liquor Line, featuring some of the country’s favourite sweet treats as spirits. The lineup includes 16 products, such as the Butter Tart Cream Liquor, Peanut Butter Chocolate Liquor and White Chocolate Raspberry Cream Liquor to name a few.
Similarly, Forty Creek launched its Butter Tart Cream Liquor last year following the successful launch of Forty Creek Nanaimo Bar Cream in 2020.
“Often, the dessert appeal leans into the nostalgic piece because it reminds consumers of a nice memory or experience,” says Stasha Johnston, SVP of Marketing at Monin. “Operators should capitalize on the experience and nostalgia in their dessert drinks. Global flavours, such as Asian and Mediterranean, are also dripping into desserts with flavours such as ube, yuzu and hibiscus.”
Novel/Quirky Presentations
To grab consumers’ attention and boost the bottom line, operators are capitalizing on eye-catching garnishes and presentations to elevate their beverage offerings. From edible flowers and dried fruits to smoked ice cubes and colourful bands of liquors, a cocktail’s looks have become almost as important as its taste.
Usual and novelty glassware, such as fishbowls at Jack Astor’s, light-up LED glasses at Selva Toronto and tiki mugs at The Shameful Tiki Room Vancouver, adds another layer of fun and excitement to any speciality beverage.
Brian Loukmas, VP of Innovation at Monin says colour is an important element that anchors this trend and acts as a clue to flavour.
“A bright fuchsia works extremely well, so operators don’t have to worry as much about [glassware] or fancy garnishes,” he says. “It’s all about the colour of the drink. Consumers can easily spot it and say ‘I want that.’”
“The novel/quirky appeal is heavily driven by a few things, including social media, nostalgia and non-traditional ingredients,” says Stasha Johnston, SVP of Marketing at Monin. “We’ve seen [operators] latch on to Barbie-inspired pink drinks; more consumers are drawn to new foods, flavours and beverages because they fear missing out, and the nostalgia piece plays a role in that; and items that used to be on a plate are now making their way into the beverage space, such as savory notes of mushroom, tomato or basil. It’s all about bringing garden to glass.”
Sustainability in Brewing and Distilling
Energy consumption, wastewater, waste by-products and air emissions are key issues when it comes to the environmental impact of breweries and distilleries. However, as industries begin to consider their environmental impacts – partly because consumers are increasingly favouring brands with a commitment to sustainability – a growing number of brewers and distillers are aiming to reduce their impact at every stage.
Toronto’s Karbon Brewing Co., co-founded during the pandemic by Stephen Tyson, Yves St Amand, Teddy Fedoryn and Bernardo Zamora, aims to be Canada’s first carbon-negative brewery by 2024 by sourcing local ingredients and harnessing renewable energy. Karbon entered the market with three flagship brands – Helios Helles Lager, One World Wit and J.E.D.I. (Justice. Equity. Diversity. Inclusion.) IPA – which are currently available at a number of bars and restaurants, including Pizzeria Defina Roncesvalles (Toronto) Boehmer (Toronto), Mulberry Coffeehouse (Hamilton, Ont.), The Huron Club (Collingwood, Ont.) and Brickhouse Brewpub (Woodstock, Ont.) and more.
On a larger scale, Molson Coors recently invested $10 million in its brewery in St. John’s, Nfld. to upgrade a bottle washer to reduce water and electrical consumption, as well as improve production efficiency and reduce maintenance costs, according to a press release. Since 2007, the company has invested more than $33 million in the brewery. In addition to the new bottle washer, the brewer has also invested in a new wet mill, bottle and can fillers, tunnel and flash pasteurizers and a can packer that eliminates the need for plastic packaging.
“Generally, all breweries, distilleries and manufacturers know there’s a way to produce now that has less impact on the environment whether it’s through water use, ingredient sourcing or sustainable packaging,” says Stasha Johnston, SVP of Marketing at Monin. “We can all make a conscious effort to be more sustainable and follow a similar formula.”
Seasonal Releases
Seasonal menus are a great way to engage guests, keep up with trends and test new products, providing a foundation for increased profit margins. While fall and winter menus offer cozy cocktails and trendy shrubs such as cinnamon-spiced old fashioneds and rosemary-cranberry spritz, spring and summer menus are fresh and fruit-forward with floral notes of hibiscus and refreshing watermelon.
“Seasonal releases create anticipation and excitement. There’s truly no downside to it,” says Stasha Johnston, SVP of Marketing at Monin. “It’s an opportunity to create another touchpoint with customers and shows that a brand is innovative and on trend.”
In November, Bel Café, chef David Hawksworth’s downtown Vancouver coffee shop, launched its 2023 holiday menu featuring several drinks, including the Apple Cider Mimosa, Vegan-nog Latte, Gingerbread Latte and Irish Cream Hot Chocolate.
Similarly, Moxies’ festive drink menu included the Old Fashioned Christmas, Gingerbread Dream and Peppermint Mocha Martini.
“Consumers don’t want to feel left out because it’s a limited-time offer,” says Brian Loukmas, VP of Innovation at Monin. “If they see it advertised on social media, they feel like they have to have it.”
