Welcome back to the BevNET spirits newsletter. This week we’re taking a look at the state of adult non-alc (ANA) so far this year, and why the playbook is splitting among brands.

What insiders are reading: Keeping up with THC drinks regulation is a full-time job, but we got you and high-ABVs are on the rise, but they're more than buzz for your buck.

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-BevNET spirits editor, Ferron Salniker

Adult Non-Alc (ANA) beverage sales passed $1.08 billion in U.S. sales in 2026, according to NIQ, with the real number likely higher when counting on-premise and alternative channel sales. 

But more than halfway through 2026, that growth is slowing as the category matures, splitting into competing brand strategies and drawing in different buyers from the industry's early assumptions.

The major headlines so far this year:

• It’s getting moody: Mood support is now the fastest-growing benefit across all functional beverages, up 42.2% year-over-year (YoY) and nearly three times protein's growth rate. Roughly 4% of non-alc wine, beer and spirits now carry functional ingredients, up 142.5% YoY, led by adaptogens and botanicals.

• Brands ditch the wellness pitch: At the same time, 2026 has seen brands move away from wellness and moderation-centered branding – see Free Spirits’ mid-year turn to cocktail culture, and Botivo’s success focusing on pleasure.

• Chasing on-prem: Dollar growth for NA beer, wine and spirits is accelerating faster on-premise (+44.3%) than off (+18%). If 2025 was the year of NA brands charging after retail, the rest of 2026 and into 2027 may now be the time when brands cozy up to the bar. 

What else to watch this year? Read the full article

KEG 1 River City (K1RC) has signed a letter of intent (LOI) to acquire Republic National Distributing Company's (RNDC) Kentucky assets, the companies announced today. The deal follows news late last week that Breakthru Beverage Group was pulling out of its deals for RNDC’s Kentucky and Indiana operations.

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The price of a drink at a bar or restaurant has gotten more expensive more quickly than most other things, according to the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics.

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Diageo CEO Dave Lewis unveiled a $1 billion cost-cutting plan for the struggling drinks giant, alongside a broader push into ready-to-drink (RTD) cocktails and more accessible formats. 

Unlock the full story with BevNET & Nosh Insider

The road to winning over Gen Z may be paved in shaved ice. Or at least ready-to-drink (RTD) brand -196 hopes so. 

Read the full analysis with Insider access

The vodka business is shrinking, but suppliers can pivot to new formats and styles to recruit the next generation of buyers, according to a new report from NIQ.
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Have a tip to share? Reach out to Ferron Salniker, spirits editor at fsalniker@bevnet.com

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