Raising a Toast to Non- Alcoholic Beverages
Our social, summery months are when alcohol-free drinks really have the chance to shine.
There’s plenty of re-stocking movement on the supermarket shelves dedicated to the expansive, and ever-growing, range of alcohol-free beverages. What’s becoming increasingly clear is that this is far from a fad, or something enjoyed by simply some, or even just a seasonal wonder. As succinctly put in a recent article in Beverage Daily “the alcohol-free category has made its way from niche alternative to mainstream superstar”.
The NZ Beverage Council includes a variety of members who are embracing this “superstar”. At beverage manufacturers Pure Bottling and Fresh Dynamics, for example, customers in the non-alcoholic beverage world are a key part of business.
Take NZ premium mixer brand Alchemy & Tonic, for example, which is bottled at Tauranga’s Pure Bottling enterprise. Alchemy & Tonic’s Marketing Manager Jenna Lee says the demand for mixers that are genuinely delicious has never been higher in New Zealand and Australia.
Sure, they shine with any spirit, but they are enjoyed on their own as an alcohol-free alternative too. They’re top quality, tasty, and award-winning so it’s little wonder increasing numbers of consumers are choosing such alcohol-free drinks, she says.
One of the company’s new to market offerings – Pineapple & Jalapeño Soda – won gold at last year’s NZ Artisan Awards, proving, Jenna says, that “bold, balanced, and exciting flavours are chosen because they taste great, are genuinely enjoyable, and bring a touch of magic to every sip,” and that’s with, or without, alcohol.
When Alchemy & Tonic, for example, was launched in 2020 its predominant purpose was to be a mixer consumed with alcohol. Its role as a “sophisticated soft drink” on its own existed, but to a much lesser extent. That gap is closing, says a company representative. Non-alcoholic beverages, as drinks in their own merit, are more front of mind.
“It’s a movement that is more prevalent with our Australia retail partners, and it is emerging in New Zealand.
“This change has meant that we are continuing to craft our flavours and the sensory experience you get when having our drink.”
There’s a definite, growing demand for such interesting and high-quality non-alcoholic drinks, says Kyle Osborne, the CEO of Penrose-based Fresh Dynamics. About 80 per cent, or more, of the Auckland company’s current volume is non-alcoholic and that’s steadily increasing.
“While we’re new as a brand, the business has been built very deliberately around where we see demand heading, rather than where it has been.
“Non-alcoholic beverages are a big part of that thinking. We’ve noted solid growth in non-alcoholic production over the last couple of years and that’s been central to our strategy from day one.
“Our decision to enter the non-alcoholic space was driven by both market demand and the opportunity to offer clients a modern, high-quality option for non-alcoholic product development. The category is evolving fast, and we wanted to be part of that.
“What we’re seeing, and what our customers are telling us, is a structural shift in consumer behaviour rather than a short-term trend. People still want something premium, social and great-tasting in their hand, but without the alcohol. That’s especially noticeable over summer, where moderation, wellness and choice are front of mind,” Kyle says.
Fresh Dynamics’ confidence in the current and future state of the non-alcoholic beverage market is driving big investment decisions, with the company installing two large-scale retorts, set to give Fresh Dynamics the largest retort processing capacity in Australasia. That investment will enable the company to safely produce shelf-stable non-alcoholic beverages across dairy, plant-based and protein-based formats.
“These categories are seeing particularly strong interest from both established brands and new market entrants. That capability is increasingly important as brands look to deliver more complex, high-quality alcohol-free products without compromising on taste, nutrition, or shelf life,” Kyle says.
From a manufacturing standpoint more broadly, he says what’s being noticed is brands are either launching non-alcoholic SKUs alongside existing ranges or entering the market exclusively with alcohol-free offerings. This includes functional, prebotic and probiotic drinks, adult soft drinks and non-alcoholic cocktails.
In many cases, the technical complexity of these products is increasing, he says, which is where specialist contract manufacturers like Fresh Dynamics come in.
Predictions for 2026
Continued growth in the non-alcoholic beverage category can be expected, Kyle predicts, based on three things:
• Consumer demand for better-tasting, health conscious, higher-quality non-alcoholic options
• More social occasions where alcohol-free choices are expected, not niche
• Brands investing properly in formulation, processing, and packaging, rather than treating non-alcoholic as an afterthought.
Being noticed
It’s near impossible to miss the growing noise around the popularity of non-alcoholic beverages. Jump on an Air NZ flight, for example, and the drinks menu now includes cans of ALBA’s Non-Alcoholic Coconut Margarita.
Some Kiwi companies are doing an especially good job of driving awareness, a case in point being wellness company Moodie, which last year ran a major marketing campaign involving a Range Rover Evoque giveaway. The campaign – with the car painted up to feature Moodi product – amassed massive interest.
It appears NZ companies already working within the non-beverage space can feel they’re well positioned. Watch this space as word within the industry is that others are moving to join this growth sector - this mainstream superstar that’s muscling in on supermarket shelf space with no intention of slowing down.
By Monique Balvert OConnor
(Supermarket News - February 2026)