Music festival season is in full swing, and this year it’s seeing more than just psychedelic costumes and light shows.
The music industry is nothing if not eager to tap into youth trends; in this case, it’s the rising popularity of non-alcoholic beverages from across categories that’s manifesting at concert venues nationwide. Live Nation made headlines by investing in Liquid Death in 2021, but more activity followed: Goldenvoice, the promoter behind influencer-laden festival Coachella, has partnered with Los Angeles-based non-alcoholic (NA) retailer New Bar for two years in a row and has shown the revenue potential of innovative NA options in these settings.
Those types of partnerships represent an opportunity for functional and THC drinks to not only gain recognition but recontextualize the overall festival experience while giving promoters an opportunity to increase concession sales. Attendees are also asking for NA, said Insomniac head of new ventures Keary Millard.
“[Non-alc] picked up quite a bit of steam and there’s no denying it,” said Millard. “Beer is declining but non-alc is up.”
Among legal-drinking age consumers, 75% of Gen Z and 70% of Millennials were moderating their alcohol consumption in 2023, according to IWSR analysis.
Functional non-alc brand Hiyo kicked off the summer music scene with a new five-year partnership with electronic music event promotion company Insomniac. The functional social tonic will sponsor all Insomniac events and be sold at all event bars. The non-alc RTD maker is also hosting its own Hiyo House zero-proof lounge activation at each festival.
The partnership — Insomniac’s first long term deal with a functional NA brand — represents its commitment to the category, said Hiyo co-founder George Youmans.
Excluding Insomniac’s Hard Fest, which happened this weekend, Hiyo has sold over 40,000 cans over the course of the partnership, Youmans said. The Insomniac deal has led to not only other live event opportunities including an activation at this past weekend’s Pretty Lights show at Red Rocks but also increased retail distribution in conventional chains aiming to offer more next-gen options.
“A lot of these retailers call themselves “uncool” and they want to bring more New Age customers in. We offer that,” Youmans said.
Some hemp-based THC drinks are also seeing the potential lift from aligning with live events. Elevado was at Redondo Beach, Calif.’s BeachLife Festival and this week Magic Cactus is sponsoring the Elements Music Festival in Pennsylvania.
For Magic Cactus, the deal started by seeding products in green rooms and VIP lounges at the promoter’s SolFest in Florida in May and grew into a full activation this week with over 15,000 cans on sale at all Elements Festival concessionaires.
The hemp-derived THC maker will also be sampling and educating attendees at its own Cactus Club tent where it will be mixing cocktails and offering interactive experiences.
“We’re following a similar trend of this cultural, generational shift in consumption behavior and going deep into the music and entertainment space,” said Magic Cactus founder Jonny Locarni. “We’re just really trying to dip our toes in while hopefully building relationships to be at some of these mainstream festivals in the future.”
Though there’s clear pockets of momentum, promoters like Insomniac appear to be taking a step-by-step approach to NA alternatives while keeping cannabis products on the sidelines at live events. If hemp-friendly states like Pennsylvania and Illinois – where cannabis operator Green Thumb Industries Inc. is hosting its second year of The Miracle at Mundelein in partnership with promoter Dayglo – can make it work, it may inspire others to follow suit.
“Every state is different, every city is different, every venue can be different. So you have some obstacles that I think are still being vetted,” said Millard. “It’s here. I think just more work needs to be done from a regulatory standpoint, and understanding what can actually happen and making sure that it’s safe for all involved.”