Diageo North America has acquired Ritual Zero Proof Non-Alcoholic Spirits (Ritual). Since its launch in Chicago, Illinois, in 2019, Ritual has grown rapidly and is now the number one non-alcohol spirit brand in the United States. This deal aligns with Diageo’s Growth Ambition to deliver the company’s next phase of sustainable growth.
Ritual was created to give consumers a simple and accessible way to enjoy their favorite cocktails, from an Old Fashioned to a Negroni or Margarita, without alcohol. Ritual’s founders, David Crooch, Marcus Sakey, and GG Sakey, experimented with hundreds of recipes and consulted with bartenders, chefs, and beverage professionals to recreate spirits’ flavor, aroma, and complexity.
The brand’s portfolio contains alternatives to whiskey, tequila, gin, rum, and aperitif, which can all be substituted one-to-one with traditional spirits to create non-alcohol versions of well-known recipes. This enables the brand to participate credibly in top cocktail serves and occasions.
Diageo is well prepared to build on Ritual’s already strong position and significant presence in the non-alcohol category. As the number one non-alcohol spirits player globally, Diageo holds the leading market share position in the three largest non-alcohol markets globally, including the US, and owns three of the five largest non-alcohol brands globally by value.
In 2020, Diageo acquired a minority stake in Ritual through Distill Ventures. And Distill Ventures, the world’s first accelerator for founder-led drinks brands, receives funding from Diageo and works in partnership with the company to support founders as they launch, grow and scale the iconic drinks brands of the future.
Co-founder David Crooch will remain actively involved with the brand and work with the Diageo team to build on Ritual’s success. David has been named General Manager, Diageo Non Alcohol, to lead the expansion of Diageo North America’s non-alc business unit.
KEY QUOTES:
“Ritual Zero Proof is the number one brand in the fastest growing adult beverage category, and meets growing consumer demand for a flavorful and sophisticated, yet accessible spirits alternative. We are delighted to welcome it into our broader portfolio, where it will beautifully complement both our non-alc offerings, as well as those with alcohol, and serve to present consumers with even more choice and variety.”
- Sally Grimes, CEO, Diageo North America
“From day one, we’ve set out to create an iconic brand in the drinks industry, specifically designed to meet the needs of the modern consumer. Ritual brings this mission to life, and Diageo understood that from the get-go. With the continued and widespread growth of the category, there is significant market presence and consumer demand. Ritual has the ability to meet consumer desires and tastes, seamlessly offering traditional spirit alternatives ounce-for-ounce.”
- David Crooch, Co-founder, Ritual Zero Proof
“This acquisition is proof of the mainstream potential of the category, and our shared ambition to make sure a non-alc cocktail is available on every menu and on every grocery and liquor store shelf, providing sophisticated choices to today’s consumer.”
- Marcus Sakey, Co-founder, Ritual Zero Proof
“When we first invested in Ritual, the non-alcoholic landscape in the US was nascent, but our insights told us the consumer was there and ready. Our belief in the category, the vision of innovative founders, and our world class venture partnership with Diageo has helped position Ritual to become the #1 non-alc spirit brand in the U.S.”
- Heidi Dillon, CEO, Distill Ventures
