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Why nonalcoholic wine is so expensive

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0:00The data is in. More and more Americans
0:02are turning away from alcohol and the
0:04ripple effects are big. Wineries in
0:07California are going out of business.
0:09Alcohol companies are scrambling to make
0:11NA products.
0:12>> How does it affect the businesses though
0:13that rely on selling alcohol?
0:15>> Many are adapting right [music] now.
0:16>> We basically have modified our entire
0:18beverage program to accommodate more
0:20[music] non-alcoholic drinkers.
0:22>> Heineken made history in 2023
0:24advertising alcohol-free beer in the
0:27Super Bowl for the first time. [music]
0:28But this decline has also led to the
0:30boom of a whole new industry,
0:31non-alcoholic wines. Though the price
0:33tag on these NA wines can be [music]
0:35pretty steep, often costing even more
0:37than wine with alcohol. But there's a
0:40good reason for that markup.
0:43So, I went to visit my friend Dean, the
0:44co-owner of an NA bottle shop in LA to
0:47get the insider's perspective on why
0:49[music] wine without alcohol is likely
0:51worth the price.
0:56So, funny story. Dean actually used to
0:58work with us here at Box. [music] And it
1:00turns out you can go from making Box
1:02videos to being a small business owner.
1:06>> Hey, Dean.
1:07>> Hey. What's up?
1:08>> Beautiful shop.
1:10>> Thank you. Welcome in.
1:12>> Wow.
1:14Honestly, I don't know if I would be
1:16able to tell that this doesn't have
1:18alcohol.
1:19>> Yeah. I mean, I always tell people it's
1:22like you're not really like losing
1:24anything when you
1:27drink non-alcoholic
1:28>> Yeah.
1:28>> wine. I feel like the only thing you're
1:30losing is kind of the cluster headache
1:33you get later on from alcoholic wine.
1:35>> This tastes like a pool [music] party.
1:38>> The artistry kind of comes in with
1:40reintroducing the flavors and the aroma
1:44and the texture that kind of gets
1:47removed sometimes with the alcohol.
1:49Human beings have been cultivating wine
1:51for [music] thousands of years. And in
1:52those thousands of years, wine has
1:54changed a lot.
1:58[music]
2:03Since we've opened, we've seen a huge
2:05evolution in not only the market, but
2:08the consumer as well. Only about 54% of
2:10people in the US drink alcohol. And of
2:13the people that do drink alcohol, a lot
2:15of them say they want to drink less. So,
2:17I kind of embarked on this journey into
2:19non-alcoholic stuff through uh like
2:22medical reasons, like I had a heart
2:23condition um that I had to get uh
2:26corrective surgery for. So, kind of
2:28overnight I had to just stop drinking.
2:31[music]
2:31>> And Dean's not alone. Alcohol
2:33consumption in the US has been declining
2:34every year since 2022. That cutback is
2:37due to a few factors. One is health
2:39concerns like what Dean experienced and
2:41another is related to mental health and
2:43anxiety. [music]
2:44And a big part of this shift is
2:46spearheaded by younger consumers
2:47choosing to drink less.
2:49>> I think younger people are just not
2:50[music] taking to drinking in the same
2:52way. In terms of market share,
2:54millennials are actually kind of the
2:55highest like adopters of NA. But we're
2:57also seeing a lot of like older
2:59generations and baby boomers coming in
3:01whose doctors are telling them it's time
3:04to like stop drinking those couple
3:05glasses of whiskey at night.
3:07>> With all these shifts, Dean saw an
3:09opportunity. [music] There were a lot of
3:11non-alcoholic options out there, but
3:13they were kind of spread out. You had to
3:14go to like a bunch of different stores
3:15or buy stuff online. I was kind of
3:18missing that independent [snorts] cool
3:20like wine shop experience. And so, we
3:24just decided [music] to open the store
3:25that I wished existed when I kind of
3:28started on this journey into non-elk
3:29[music] in the first place.
3:31>> In fact, US sales of non-alcoholic beer,
3:33wine, [music] and spirits have grown
3:35over 20% every year since 2022.
3:38Researchers estimate that the no alcohol
3:40market will grow to over $4 billion
3:42[music] by 2028. But the price tag is a
3:45problem.
3:46>> Sometimes customers come in and they are
3:48browsing our wine and they're like, you
3:51know, this is the same price as some
3:53alcoholic wine that I see at the store.
3:54Like, why is it the same if there's no
3:56alcohol in it? It's actually much more
3:58expensive to create non-alcoholic wine,
4:00especially good non-alcoholic wine.
4:05I know logically it would seem that any
4:07wine should cost less because you're
4:09removing something rather than adding to
4:11it. But if baking wine is difficult,
4:14making wine without alcohol is like the
4:17next level of challenge.
4:18>> This is Dr. Mania, a food scientist who
4:20is one of the world's leading
4:22researchers of dealcoholized wine. She
4:24also works with Swedish NA wine company
4:27OddBird.
4:27>> Wine has been with us for 8,000 years.
4:30It's been part of our culture of our
4:32celebration of our um scientical
4:36knowledge and discoveries.
4:38>> So how exactly does the science of
4:40removing alcohol work?
4:41>> The first patents of removing alcohol
4:44started in 1890s [music]
4:46and you can do it through different
4:48technologies like vacuum distillation or
4:50reverse osmosis [music] or spinning
4:52cone. The earliest technology was vacuum
4:54distillation, which basically means
4:56increasing pressure to lower the boiling
4:58point of alcohol for evaporation. So
5:00that will allow for the wine to start
5:03boiling at a lower temperature below 30°
5:08and that will allow for the rest of the
5:10compounds in the wine to not evaporate
5:14and stay there and not being like
5:17destroyed. So vacuum distillation uses
5:19maybe higher energy but it's easier
5:22[music]
5:22to preserve the aroma and it's a very
5:25clean technology. To my knowledge right
5:28now the most used is vacuum distillation
5:30[music]
5:31especially for odds birth. This is what
5:33we use because we really work with low
5:35intervention.
5:36>> Then there's reverse osmosis which
5:38involves using very fine membranes to
5:40filter out the hundreds of compounds
5:41[music] in wine including ethanol. And
5:44this different compounds has different
5:47size and this membrane separates by size
5:52of the compounds. So first separates
5:54water, ethanol or alcohol and then comes
5:57the other compounds. You take the
5:59remaining components and recombine them
6:01to recreate the wines. Finally, there's
6:04the spinning cone column. The most
6:06modern and advanced technique. [music]
6:07It basically combines the methods in
6:09vacuum distillation and reverse osmosis
6:12in a staircase of connected [music]
6:13cones.
6:14>> You put a lot of pressure but you also
6:16have a lot of like membranes thin
6:18membranes that are in cone and they
6:21[music] spine. It first capture most of
6:24the volatile aroma. It starts to trap
6:26them in that member [music]
6:28and then remove the ethanol or the
6:31alcohol and there returns all the
6:33aromomas to wine. I would say that there
6:35is no single technologies that it's
6:37simply the best. But the quality of the
6:40final wine depends very much on the
6:44quality of the original wine. So what
6:46you do with your grapes. So doesn't
6:48matter which technology you are going to
6:50choose to use. It's about what what kind
6:53of wine you want to make.
6:55>> So yes, alcohol was removed, but the
6:57product has actually become even more
6:58complex than it was before. A quick word
7:01from the sponsor of this video. This
7:02video is presented by Verizon Business.
7:05Verizon small business days are [music]
7:06happening now. If you're a small
7:07business owner, Verizon business experts
7:09are ready to meet with you oneon-one.
7:11We'll act as extra support to [music]
7:12make sure you've got the best tech, the
7:14best plans, and to give you special
7:15offers to help your business succeed.
7:17[music] Score a meeting with a Verizon
7:19business expert during Small Business
7:20Days from August 17th through August
7:2330th. Go to verizon.com/sallus
7:26to learn more. [music] By the way,
7:27Verizon Small Business has no say in the
7:29editorial content of this video, but
7:31their support does allow us to do
7:33stories that feature cool entrepreneurs
7:35like [music] Dean. And now back to the
7:37video.
7:40For small business owners like Dean,
7:42their space is a lot more than just a
7:44shop. It's a destination to gather, to
7:46build community, which in a lot of ways
7:48has [music] always been the goal of
7:50drinking. We do free tastings every
7:53weekend so that people can kind of
7:55actually experience these things instead
7:58of just kind of hearing about them. But
8:00also, we do a lot of stuff that's not
8:02revolving around beverages. We do like a
8:05book club. We do a monthly poetry
8:07workshop. We do game nights. We do craft
8:09nights. They're just coming to play, but
8:11then they're like, "Oh, this is a cool,
8:12comfortable space, and you know, this
8:14beverage that I tried is really tasty,
8:16and these snacks I got were really
8:17delicious." and then they would want to
8:20come back.
8:20>> What's happening in the wine industry
8:22today is it's facing [music] one of the
8:25biggest transformation actually in its
8:27history. In 2024, global wine
8:30consumption fell to around 214
8:33million hecto liters. So it was like the
8:36lowest level in more than 60 [music]
8:38years. Innovation you know matters in
8:41this situation. This is one when we need
8:45to rethink and get out of the box. And
8:48I'm not saying that the future it's only
8:50wine without alcohol. I think they they
8:52can go hand in [music] hand. And wine
8:54without alcohol can be also the future
8:57lab of the wine industry.
9:01Why not [music] reinvent ourselves?
9:07>> Cheers to you.
9:07>> Cheers. May everyone have the Vox video
9:10to [laughter] small business owner
9:12pipeline dream come true.
9:13>> Hey, no, we're we're living the dream.
9:16[laughter]
9:20>> That is delicious.