Welcome back to the BevNET spirits newsletter. This week I chatted with a co-founder of non-alc spirit The Pathfinder on how scaling like a spirit brand worked… and didn’t work.

What insiders are reading: Check out the buzz in spirits marketing and how spirits sales fared over July 4th.

Thanks for reading.

-BevNET spirits editor, Ferron Salniker

In some cases it works to sell adult non-alc like its alcoholic counterparts. In other cases, not so much. 

Just off closing a $3.6 million raise led by the Stoli Group, I spoke to one of The Pathfinder’s co-founders, Chris Abbott, about how the NA spirit is beginning to scale. The Pathfinder, a fermented and distilled non-alcoholic amaro, was founded in 2021, and was first backed by Stoli in 2023. 

One of the brand’s founders includes Steven Grasse, creator of Hendrick’s Gin and Sailor Jerry Rum, among other labels. Taking a page out of Grasse’s Hendrick’s Gin playbook, the company initially set out to build its business by slowly taking one SKU wide, something that has worked incredibly well for some spirit brands. 

But the ANA space is shaping up to resemble other CPG categories as brands move into grocery, where major retailers need to see multiple SKUs in order to put a brand on the shelf. Not only that, but the ready-to-drink trends transferring over to adult non-alc (ANA) forced the brand’s hand to get on board with canned cocktails, and offer a Negroni and a Spritz. 

One channel strategy adopted from the booze world that has proven to be effective is going after bartenders in the hopes that they “will lend their credibility to what you're doing,” who will lead the consumer to adopt the brand, said Abbott. That’s going to be easier for ANA brands like The Pathfinder, who are showing up with activations at booze events like Tales of the Cocktail and have fun, story-rich brands – something I think is missing in the NA spirit space. 

As The Pathfinder leans into Stoli’s distribution network, it’s now at the crossroads any brand across CPG can relate to:  the chicken-or-the-egg dilemma. To attract a national account one must have national distribution, but to get national distribution one must land a national account. It’s audacious to now go into 30+ states at once, admits Abbott, but with tests at Total Wine and Sprouts, and retailers insisting it's time to take the leap, the team is finding themselves at a “powerful place.” 

Insiders can read more about how groups like Stoli are betting on ANA and how The Pathfinder is preparing for the national transition. 

A centuries-old spirit with deep cultural roots is getting a New York makeover. SAG is a new craft spirits brand founded by four Iranian friends, and it may be the first U.S.-based arak label to nail a modern take. Insiders can read the full story. 

Bev-alc sales continued to decline in the two-week period ending July 12, although mixers and spirits got an Independence Day boost, according to analysis of NIQ data from Goldman Sachs Equity Research. Despite ready-to-drink beverages showing growth in the period, sales velocity for major brands still continue to cool (some even to celsius sparkling blue razz temps😆). Get all the data.

E-commerce beverage-alcohol platform Provi and Republic National Distributing Company (RNDC) have reached a “mutually satisfactory resolution” of their yearslong legal battle, which has ended with a settlement, the companies announced. As part of that resolution, the companies have forged a nationwide services agreement that will allow RNDC’s retail customers to place orders using Provi’s marketplace. Get all the details.

Rumors that have long-circled major tequila companies – that their 100% tequila is not really tequila – have finally migrated from the cantina to the American court system. This story is a deeper dive into my column last newsletter about the possible outcome of the cases: at least one of the charges will be tough to prove, but if the case does get past Diageo’s motion to dismiss, you can bet more class action lawyers will smell blood in the water – or in this case, cane sugar in their tequila. We also chat with a crisis and reputation expert on how Diageo may go on the offensive – and what moves would be a major blow to its reputation. Insiders can read the full story. 

Reyes Beverage Group (RBG) has scooped up even more major spirit brands in California. Four Roses Bourbon and Fuji Japanese Whisky are the latest to join the total beverage distributor in the leadup to Republic National Distributing (RNDC) exiting the state. The newcomers join the distributor’s growing spirits book including new additions Kōloa Rum Company and Infinium Spirits, LALO Tequila, Fernet Branca USA, and two of the largest global spirit companies. Talk about a summer glow-up for Reyes. Read more.

Convenience and quality don’t always go hand in hand, but Tip Top Cocktails is changing that perception, one perfectly crafted drink at a time. Taste Radio’s Ray Latif chats with Neal Cohen and Yoni Reisman of Tip Top Cocktails. Listen. 

More big players are getting in on the adult non-alc action. Rémy Cointreau has acquired a minority stake in JNPR, a French non-alcoholic spirits brand founded in 2020. The investment aims to accelerate JNPR's growth in France and select international markets. Get the scoop.

Hiyo went from national to… more national at Whole Foods? What is for sure is that we're looking forward to trying the new flavor. Read more.

Canadian cannabis giant and U.S. craft beer platform Tilray Brands is at it again. The company’s Colorado-based Breckenridge Distillery announced the launch of Mock One, a collection of NA spirits. Mock One, a line of whiskey, gin, tequila and rum replacements, enters an increasingly crowded segment, armed with labels that look somewhat similar to competitor Drink Monday. Wonder if we’ll hear more about that in the ANA LinkedIn threads! Check it out.

The NYT updated its top canned cocktails list, featuring familiar names like Tip Top and St. Agrestis Negroni, as well as soju cocktail Jumo. See for yourself, and let me know if you have any faves this year.

Congrats to Bertha González Nieves, co-founder and CEO of Casa Dragones, and Laura Taylor, founder of Mingle Mocktails, for making the Forbes 50 Over 50.