In Europe, 41% of people who don't drink alcohol are under 35 but what does this mean for the drinks industry? Founder of the UK’s largest independently owned soft drinks brand, Trip, discusses the changing consumer demands for alcohol-free beverages.
ADVERTISEMENT“We're on a mission to create these moments of calm in everyday chaos and it’s going to change the world,” is what Olivia Ferdi and her newly-wed husband, Daniel Khoury told their families in late 2018.
Fast forward 7 years and their functional drinks brand Trip is the fastest growing food and beverages brand in the UK of the last 16 years.
Trip produces a variety of drinks, supplements and gummies containing CDB, magnesium and other natural botanicals associated as being traditional remedies for stress.
In this episode of The Big Question, Hannah Brown sits down with Olivia, co-founder of Trip, to discuss Europe’s growing non-alcoholic drinks market and why younger generations could dramatically change the future of the alcohol industry.
What is a functional drink?
Functional drinks are a subsection of the soft drinks market which serve a purpose and show immediate, rather than long-term effects. Energy drinks are probably the best example and most established in this category.
Trip, having first launched in the UK in 2019 and more recently in Europe, is the market leader in the ‘calm’ or ‘relaxation’ functionality.
So far in their short life span, Trip has seen record breaking growth and Olivia is confident it’s not going to stop anytime soon.
“Show me someone in your life who isn't experiencing a moment of stress every day. And sadly, whether it is your mum, your friend, your colleague, the bus driver, we all have these feelings of tightening, of overwhelm, unfortunately.
“I think the way the world is continuing to evolve, the scary landscape that we're looking at on a macro level, it's always going to be there. So there's always going to be that need, I think, for this sort of exceptional product,” she added.
A growing trend away from alcohol consumption
A whopping 17 million people are projected to have taken part in Dry January this year across Europe. That’s roughly 6% of all adults across the continent.
But according to Olivia, it’s not just a trend for January. It’s translating into customer behaviour all year round.
A particular driver in this sector is the younger generations. 37% of Gen-Z are teetotal and with this they bring new trends for socialising and relaxing.
“They didn't grow up going to the pub looking for a gin and tonic so they're not looking for an alcohol-free gin and tonic. They're looking for something completely different,” Olivia explained.
“It's got to be the most delicious drink you've ever had, not the most delicious functional drink, not the most delicious healthy drink, not the most delicious low sugar drink, the best tasting thing you've ever had.”
Olivia also cited feelings of anxiety on the night or the morning after drinking (also known as ‘hangxiety’), over-connectedness and permanent screen time as contributors to stress and the reasons more and more people are choosing not to drink alcohol.
ADVERTISEMENT“So for us, it's the ability to innovate and create products that can bring in exciting ingredients that are trending and have proven impact for alleviating things like stress and anxiety, but always making it incredibly delicious and convenient. It's got to be fun and help you connect with people in the way that normal drinks do.”
Whilst Gen-Z are the most vocal in this new customer trend, Olivia suggests other generations are seeking to reduce their alcohol consumption and the access to a greater offering of non-alcoholic drinks is having significant effects on the retail and hospitality sector.
The Big Questionis a series from Euronews Business where we sit down with industry leaders and experts to discuss some of the most important topics on today’s agenda.
Watch the video above for the full conversation with Olivia Ferdi, co-founder of Trip.
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