The famously teetotaling Hayes has become Athletic’s “Chief Fancy Officer,” with the two partnering on a limited-time brew called Fancy Like. The product is named after his chart-topping 2021 single that went viral, setting off a TikTok craze and juicing business at name-dropped Applebee’s. Fancy Like, the beer, had a cameo in a recent Hayes music video and will be sold at his concerts while supplies last.
Athletic’s marketing onslaught happens as non-alcoholic beer sales at bars and clubs have jumped nearly 33% in 2024 and increased 35.5% in groceries, according to NielsenIQ. At the same time, traditional beer sales dipped to their lowest levels in a generation—beer shipments fell below 200 million barrels for the first time since 1999, per Beer Marketer’s Insights—as drinkers turned to canned cocktails and seltzers, tequilas and other spirits.
The zero-proof category is still niche and nascent, with New England Consulting Group managing partner Gary Stibel recommending a break with the pack.
“Athletic occupies an infinitesimally small share of bladder, yet the brand is capable of being much larger,” Stibel said. “The next step? Get rid the NA piece of the marketing and become a major beverage player.”
Yet booze-free booze and “sober curious” are trending topics. As the modern temperance movement rages on—45% of Generation Z has never had alcohol, while 41% of imbibers say they are trying to drink less, per Nielsen—Katz spoke to ADWEEK about cozying up to boldface names, choosing the right media channels and competing in a jam-packed category.
ADWEEK: There’s been a surge in booze-free products over the past few years, so is the category too crowded now?
Andrew Katz: There are over 100 entrants into the NA beer space, so from a consumer perspective, there are just so many things to try, some good, some not so good. And the big brands like Corona, Heineken and Budweiser all have their NA component. I liken this to what I observed in the energy drink, coconut water and kombucha categories. This is not a new phenomenon: People see something with a lot of heat around it and they want to participate.
The challenge for most brands is that they don’t really have a brand—they’re dabblers. They can’t raise capital, they can’t get distribution. Ultimately what happens is a shakeout. The winners will continue to win, and the fly-by-night competitors will be gone. Athletic has a tremendous head start—of the top 15 brands, we’re the only one in the category that only produces non-alcoholic beer.
