Beverage

“Alcohol-free spirits” sounds like an oxymoron — like “jumbo shrimp” or “working vacation.” While non-alcoholic wine and beer can be appreciated for their flavor, the whole point of liquor is that it packs a punch. 

But non-alcoholic spirits, which bring complexity and depth to craft beverages, are having a moment. Globally, fewer people are drinking. In 2000, 47.6 percent of the world’s population over 15 consumed alcohol, according to the World Health Organization (WHO); now, 43 percent do. Europe has witnessed a 10 percentage point decrease in the drinking population. Is now the time to put alcohol-free spirits behind the bar?

$10 used to be the magic number.

A decade ago, that was a typical price for a craft cocktail. Since then, that number has climbed and climbed — $14 to $16 is normal now, and in cities like New York and Los Angeles, no one blinks at $20.

Why have cocktails gotten so expensive? Restaurant operators cite several reasons: rising rents, the increased demand for quality ingredients, and most importantly, the cost of labor, which includes hiring skilled bartenders and paying for the time required to make elegant, complicated concoctions.

Serving high-end cocktails can do wonders for a restaurant’s bottom line, bringing in a 15-25 percent profit (compared to the 4-6 percent margin most operators see overall). But what if customers start to feel cocktail price fatigue?

It’s not last call for cocktails in the United States yet — far from it. The sale of spirits hit a record high in 2017, claiming nearly 37 percent of the total beverage alcohol market share. That’s good news for bar operators — now, the challenge is continuing to surprise and delight savvy consumers.