Mocktail Club, maker of a line of non-alcoholic canned cocktails, announced today it has received an investment from spirits industry capital and brand building firm Pronghorn, aimed at helping the Arlington, Va.-based business expand across the country.
Though financial details of the deal were not disclosed, the investment marks the first by Pronghorn in a non-alcoholic brand, which focuses on supporting Black-owned spirits and other alcohol brands with a portfolio including Hella Cocktail Co., Abisola Whiskey and Los Hermanos Tequila, among others.
“Pronghorn’s mission is simple – to create a template to diversify any industry,” Pronghorn co-founder Dia Simms said in a press release. “We recognize that the non-alcoholic sector is growing at an incredibly fast pace, which is why we are thrilled to support a Black Woman-owned brand like Mocktail Club that is set to disrupt the non-alcoholic sector through its distinct flavors.”
Launched in 2019 by founder and CEO Pauline Idogho, Mocktail Club’s line of sparkling drinks aim to provide more complex flavor profiles to the NA adult beverage occasion, and rather than simply replicate classic cocktails without the spirits, the portfolio features original flavors like Manhattan Berry, Bombay Fire, Capri Spritz and Havana Twist made with spices, botanicals, fruit flavors and more. The line is sold in 12 oz. cans in over 1,200 stores across the country.
Speaking to BevNET, Idogho said that Mocktail Club has primarily found distribution in the Mid-Atlantic region and on the West Coast in California.
“We’ve played in the mid Atlantic, we’ve got strong velocities, a lot of repeat customers, we’ve won here and we really believe that we can win nationally,’ Idogho said. “In addition, the category has grown dramatically, so it’s the right time to continue to grow our platform and our brand.”
According to Idogho, Mocktail Club has benefitted from what she called the “Tuesday drinker” – flexitarian consumers who are not cutting out alcohol entirely from their diets but are seeking more sophisticated adult beverages during non-drinking occasions. She estimated that about 93% of the NA consumer base fits that bill.
In developing its own flavor profiles, akin to a craft cocktail bar developing a unique menu of libations, Idogho said Mocktail Club has been able to “remove the anchor of expectation” from the brand; rather than simply making zero-proof versions of margaritas or “No-jitos,” Mocktail Club doesn’t have to worry that consumers will be negatively comparing its drinks to their full-bodied alcoholic counterparts, or to other NA brands with their own competing versions.
“That’s how we stand apart from competition,” she said. “Instead of being compared to the three or four other similar type non-alcoholic alternatives to a specific cocktail, we’re creating this new flavor profile that stands by itself.”
The brand’s current lineup has drawn from Idogho’s own experiences traveling to different countries, employing various international ingredients like chili peppers in Bombay Fire and cardamom in Havana Twist. Mocktail Club is now preparing to launch a fifth variety next month, around the July 4th holiday, with Idogho teasing that it will be “travel-inspired” invoking “a great vacation place.”
In both CPG and on-premise, non-alcoholic alternative beverages have grown significantly in recent years, surpassing $11 billion in sales in 2022 and the category has continued to grow since then as more consumers report drinking less alcohol.
The space has also seen some new competition from a different type of intoxicant, as Delta-9 THC drinks have rapidly expanded nationwide in mainstream retailers like Total Wine and More. However, as those drinks face an uncertain regulatory future as many state legislatures begin to scrutinize the open sale of THC.
“I think [retailers are] in that sort of understanding phase where they are trying out different sets, what is performing and what grows,” she said. “So, I think it’s quite early, actually, in terms of sets, but I’m glad that retailers are creating them.”