Non-alcoholic (NA) craft maker RationAle Brewing has added 70,000 barrels of production capacity via a yet-to-be-named new strategic partnership. The San Diego-based brewery also unveiled refreshed branding and packaging.
“We are not just reinforcing our brand positioning; we are redefining the non-alcoholic beer landscape and what the consumer expects of it,” EVP of sales and co-founder Wendy Pickett said in a press release.
RationAle, which CEO Jamie Fay and Pickett launched in 2021, is the fifth-largest craft brand in the country, according to data the company cited from SPINS, which tracks the natural products industry.
Although the NA beer segment is small at just 0.78% of all beer category dollars spent at multi-outlet grocery and convenience stores year-to-date (YTD) through September 10, according to market research firm Circana, it has recorded the largest gains in the category.
NA beer sales have increased +30.2% in dollars and +18.9% in volume (measured in case sales) YTD through September 10, according to Circana. Eight brand families dominate the segment and account for 78% of its volume, according to analysis of NIQ data by financial services firm Bernstein:
- Anheuser-Busch InBev’s Bud Zero 18%;
- Heineken 0.0 17%;
- A-B’s Busch NA 13%;
- Athletic Brewing 11%;
- A-B’s O’Doul’s 9%;
- Molson Coors’ Coors Edge 3%;
- Lagunitas Brewing 3%;
- And Pabst’s Old Milwaukee NA 2%.
Athletic is the largest player in the craft NA segment, and RationAle “is revved up and ready to secure the No. 2 spot in the rapidly growing craft non-alcoholic market,” according to the release.
In 2022, its second year in operation, RationAle produced 1,200 barrels, according to the Brewers Association’s (BA) May/June issue of the New Brewer. The brand is tracking toward 5,000 barrels in 2023, Fay told Brewbound.
With the new packaging and reformulated recipes rolled out this week, RationAle has introduced a new brand positioning as the NA craft offering for “mavericks.”
“This brand refresh goes far beyond a mere facelift; it’s a bold reinforcement of our identity, a reflection of our growth, and a renewed commitment to our community of beer enthusiasts, the mavericks: Those independent thinkers and drinkers who uniquely define the way they brew, and are in constant pursuit of an unparalleled craft taste,” Fay said in the release.
RationAle’s new cartons feature a can of each product (Hazy IPA, Mexican Cerveza and West Coast IPA) in stark contrast against a black background.
“The introduction of our new slate black cartons is a game-changer, designed to disrupt a shelf landscape cluttered with pastel hues, putting the spotlight firmly on the can and branding as the hero of our narrative,” Pickett said in the release.
RationAle is available at retail in Arizona, California, Colorado, Nevada, Oregon, Massachusetts and Rhode Island with a suggested retail price of $13.99 per 12 oz. can 6-pack. The company has signed a new fulfillment partner for direct-to-consumer sales and is accepting pre-orders online.
Insiders can watch Fay’s presentation during the Brewbound Pitch Slam Finals at last year’s Brewbound Live business conference.