Stoli Group has invested in The Pathfinder Hemp and Root, a fermented and distilled non-alcoholic amaro.
The global spirits group’s first foray into the zero-proof space comes on the heels of rapid growth for The Pathfinder, which boasts a 10,000-plus person waitlist and has produced a limited-edition collector’s bottle in order to meet consumer demand.
“We are excited about investing in The Pathfinder Hemp and Root and the diversification it brings to the Stoli Group portfolio,” said Damian McKinney, global CEO of the Stoli Group. “The Pathfinder is a true trailblazer in the zero-proof category and as this massive shift in the culture of socialization continues, The Pathfinder and Stoli Group combo creates limitless possibilities.”
Made from fermented and distilled hemp (non-intoxicating), the non-alcoholic spirit sits at the nexus of two rising categories: cannabis drinks and no/low alcohol. The U.S. cannabis industry is approximately a $28 billion industry (medical and recreational), and expected to grow to $46 billion by 2026, according to BDS Analytics at last year’s BevNet Live. Beverage currently accounts for 1% of today’s cannabis sales, but had 64% growth last year and 27% growth quarter over quarter. Now an $11 billion global business, no- and low-alcohol is projected to grow 7% in volume over the next four years, according to IWSR. Naturally low ABV aperitifs and amaro brands have also been using moderation trends to find a niche.
The drink, designed to represent the “golden era” of cannabis in the American West, was founded by Guy Escolme, a brand builder with 22 years of experience at Diageo; Chris Abbott, the founder of cannabis mints Mr. Moxey’s; and Steven Grasse, founder of beverage producer Quaker City Mercantile, creator of Hendrick’s Gin and Sailor Jerry Rum, among other labels.
The elixir, which debuted nationally in 2021, was the top-selling product this year in many non-alcoholic retailers across the country, including Boisson, Los Angeles’ New Bar, Met Market in Seattle, and New York’s Amor Y Amargo, according to the brand. The Pathfinder’s ingredients – including Douglas fir, sage, juniper, saffron, wormwood and angelica root, in addition to hemp – have made the drink an attractive addition to cafes and the back bar, according to the founders.
“The Pathfinder is a pioneering non-alcoholic spirit made from fermented and distilled hemp resulting in a highly unique bitter, sweet, and complex elixir that is remarkable and highly versatile,” said Escolme.
Stoli Group joins other global spirit companies who have brought no/low alcohol brands into their portfolios. Diageo increased its ownership of alcohol-free Seedlip in 2019 and later Diageo-backed Distill Ventures acquired a minority stake in non-alc spirit Ritual. Pernod Ricard purchased a majority stake in non-alcoholic spirit Ceder in 2021. Constellation Brands acquired a minority stake in TÖST, an alcohol-free sparkling beverage brand, last week.