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