Nonalcoholic brews are gaining steam, and with craft brewers facing a stagnant category, diversifying their offerings could help them secure a wider swath of consumers.
Founders Brewing Co., the thirteenth largest craft brewery in the U.S., is introducing Hoppy Mood, a non-alcoholic beverage. It is made by infusing botanical terpenes to bring out the “hoppy” flavor of grapefruit, tropical fruits, and a hint of pine.
The drink was received better than anticipated in a test launch in Michigan, according to Founders, which gave the bat signal that it was a product worth scaling nationally, according to Jeremy Kosmicki, Founders’ head brewmaster. The company is launching the product across the country through its distribution channels this summer.
Kosmicki said the brewer receives samples from vendors of natural essences and extracts, and he found that terpenes, found in plants, played well with the hops he uses to craft full-ABV brews.
“They’re finding ways to pull aromas from a plant that are either pelletized or extracted into oil, and pulling out these attributes that brewers are looking for aromatically,” Kosmicki said. “I’m using hops that throw off a lot of citrus and grapefruit character, and a little bit of terpene enhances that.”
Other “hoppy” nonalcoholic offerings have found a niche audience in recent years, including Hop Wtr, Sierra Nevada’s Sparkling Hop Infused Water and Lagunitas hop water offering. The beverages purport to provide the taste benefits of an IPA while eschewing alcohol, while still being a cut above sparkling water offerings in terms of quality.
Sandy Anaokar, Founders’ chief marketing officer, said the launch aligns with Founders’ foundational strategy which is to enter emerging categories and take their product to another level, which the brewer believes it did by creating a session IPA — containing 5% ABV — with full flavor.
“What Jeremy does really well is when a need in the market is identified, he not only meets it but surpasses it when it comes to taste,” Anaokar.
From a marketing standpoint, Founders believes the new beverage will serve Gen Z and millennial drinkers, which several datasets indicate are drinking less than previous generations. Hoppy Mood is targeting those who are looking for more nonalcohlic beer alternatives, particularly sober-curious consumers who aren’t looking to completely abandon booze.
“The bullseye we’re trying to hit are those consumers who want to add something to their drinking repertoire. They really enjoy the flavor of hops, they enjoy drinking beer, they like what alcohol provides them, but they need to slow down a little bit,” Anaokar said.