A new Chicago startup making non-alcoholic gin and whiskey spirits just landed an investment from one of the world's largest beverage companies.
Ritual Zero Proof announced Monday that it received an undisclosed investment from Distill Ventures, the venture and startup accelerator arm of Diageo, the London-based owner of Johnnie Walker, Smirnoff, Captain Morgan, Don Julio and other alcohol brands. The investment gives Diageo a minority stake in Ritual and the startup's founders will still have majority ownership.
Ritual says the financing will help it enter retailers across the U.S. and give it access to Distill Ventures' dedicated non-alcoholic drinks practice. Ritual is the first non-alcoholic brand from the U.S. to join Distill’s growing portfolio of international non-alcoholic brands, which make up about 25 percent of the entire portfolio.
Ritual’s gin and whiskey spirits are made with all-natural, individually-distilled botanicals that simulate the taste, smell and burning sensation of liquor. Its gin features English cucumber and juniper berry notes, along with mint and basil, while the whiskey has notes of oak, sugar floss and vanilla.
Ritual got its start back in 2018 experimenting with recipes and launched to consumers in September. In just five weeks, Ritual says it sold out of its six-month supply. Currently, Ritual's products, which are manufactured in Louisville, can be purchased on its website, Amazon, Binny’s, Second City, and at select local wine and liquor stores.
Ritual is entering the beverage market as a growing sober movement is taking hold among drinkers, particularly among millennials. And there’s data to back the argument that people across the globe are drinking less alcohol. According to a 2019 Distill Ventures data study, 58 percent of consumers are drinking more no-and low-abv drinks than in 2018.
"This is a movement," said Marcus Sakey, the founding partner and chief brand officer of Ritual Zero Proof, in a statement. "Just like almond milk and veggie burgers, spirit alternatives are changing the landscape. In 18 months, we predict non-alcoholic options will be on every menu and the shelves of every grocery store.”
