Two of Europe’s popular adult non-alc (ANA) brands – UNDONE, a global pioneer in non-alc aperitifs, wines and spirits, and Thomas Henry, a premium mixer company – have landed on U.S. shores, each with a unique value proposition and a lengthy track record.
The brands – who share a majority shareholder as of January 2024 – began distribution this month in ten states with ambition to reach up to ten more by the end of the year and go national in 2026. To power that footprint, they’ll be leveraging a joint salesforce betting on a window of opportunity following their competitor’s acquisition and a price advantage in non-alc spirits.
Thomas Henry enters the U.S. as the number two global premium mixer brand after 15 years on the international market, and has largely been championed by bartenders for its bar-focused ethos.
UNDONE is one of the few adult non-alc beverage companies that starts with distilled, fermented and infused liquid, then removes alcohol using a patented process that preserves some of the aroma, texture, and complexity of the original spirit. Launched by André Stork and Mehmet Ünlü in 2019 at Bar Convent Brooklyn, UNDONE returns to a much more developed stateside ANA landscape with eight premium spirits and aperitifs, two sparkling wines, and three ready-to-drink (RTD) cocktails.
A Moment in Mixers
Born in 2010 out of the Berlin bar scene, Thomas Henry offers a portfolio of tonics, ginger mixers, and sodas built with industry professionals in mind. Distinctive flavors like Pink Grapefruit and Cherry Blossom Tonic are part of what has propelled the brand to become staple at some of the top bars in 60 countries worldwide.
That on-premise-focused strategy and ethos is part of what Sean O’Rourke, U.S. partner and head of growth for Thomas Henry, is betting on as the brand aims to compete with the top-selling mixer, Fever Tree.
Molson Coors Beverage Company formed a strategic partnership with Fever-Tree in February, taking an 8.5% minority stake in the business and granting the alcohol giant exclusive U.S. commercialization rights to the premium brand. As Fever Tree continues to scale, O’Rourke argues the brand has optimized for “Amazon and Walmart,” leaving room for Thomas Henry to focus on restaurants and bars with its dedicated team.
“Taking their [Fever Tree’s] eyes off the prize isn’t a fair statement, it’s just they don’t have the team that’s dedicated to the on-premise like they did for a decade, which did an incredible job,” O’Rouke said. “So with us bringing that playbook from Europe here, I’ve already seen early-on that bartenders are loving that support.”
With a major beer house now putting its might behind a mixer brand, O’Rourke expects that could create more excitement around the mixer category for other distributors. He began his career working with an independent distributor, and Thomas Henry opening in a mix of mostly independent distributors in each state is a reflection of that.
“’I’m looking for who takes the category seriously? Who wants to be a pacemaker and creators in the category? And then honestly, do they love the product?” he said.
The Value Play
UNDONE has a different opportunity as it looks to compete in an increasingly saturated ANA category. With Europe’s ANA market more developed, UNDONE’s portfolio sits at the higher end of the price segment abroad, but comes into the U.S. as a value player.
“I think we’re priced where the consumer wants the product to be, and for folks who are interested in non-alc but haven’t brought their wallet over because it’s been too expensive,” said O’Rourke, who also serves as head of growth for UNDONE.
The suggested retail price for the brand’s spirits – which include gin, mezcal, rum and whiskey replacements – falls at $24.99, at least $5-$10 below leading brands such as Seedlip and Ritual. UNDONE wines also come in more on the value end at $14.99, and the RTDs – Piña Colada, Italian Spritz and Smokey Paloma – are $15.99 for a 4-pack, again about $5 under competitors. That’s been an advantage in discussions with distributors, according to O’Rourke, with pricing cited by industry experts as an obstacle for wider consumer adoption, particularly with NA spirits.
The value proposition, lack of functional ingredients, and options for mixing UNDONE’s portfolio, are part of what makes the brand “inclusive,” added O’Rourke.
But that low-pricing doesn’t necessarily mean UNDONE is making a race for the well spot. Armed with its aperitifs and sparkling wines, the company is aiming for its portfolio to provide the on-premise with suite of low-priced options for sessionable low- and no-alc cocktails – which O’Rourke sees as the next likely moderation wave over low-ABV spirits. For low-alc, that may look like a bar using UNDONE sparkling wine with a full-proof aperitif or UNDONE’s apertifs planted into a wine-based spritz.
“We’re in the right spot, because ultimately what I think is going to happen is we’re going to be the premium player at $24.99, and over time you’ll see people come under us – and hopefully we’ll be able to hold our price,” he said.