zero-zone Leading The Zero-Alcohol Market

Founder and CEO of State of Play Brewing, Grant Caulter, shared that his first real job was at DB Breweries, which he started in December 1996, which was the start of a 25year career that has landed Caulter his dream job as the global director for a craft and variety at Heinkein based in Amsterdam.

Here, Caulter oversaw an annual five billion euro global portfolio.

“I have always loved working in the beer industry, the people are a special breed, and I searched the world for great beers in amazing places wrapped up in very cool stories.”

Caulter shared that the beer quickly plays out in real-time with product innovation and marketing to mirror the social mood and trends. The CEO stated that New Zealand leads the way for craft beer, with retailers and hospitality in New Zealand quick to showcase the latest trends for a public interested in trying new and exciting things. While Caulter was at Heineken HQ, he carried his experiences in crafts to the company’s most prominent beer markets, where he was tasked with expanding Lagunita into 45 different countries, forecasting growth in new-to-craft markets, and streamlining the craft model, balancing the demand for innovation, in conjunction with developing core brands scalable into retail as well as on-premise.

Caulter shared that all was well until March 16th 2020, when he received an email explaining that due to COVID-19, he was in lockdown and would not be able to come into the office, or travel, with no people contact. He shared that he did not return to the office for the last 18 months of his employment with Heineken.

Lockdown was difficult for Caulter

“Already 145 kgs, unfit with sleep apnea, and constant hangxiety, I was coping like a lot of other people with daily happy hour, that got earlier and earlier.”

Calculator shared that when outdoor bar terraces opened again, he felt that things were out of control with the number of times he went out to enjoy double IPAs. Therefore, on the 3rd of July 2020, Caulter and his wife Nicky stopped drinking alcohol to retake control and commit to change, sharing that alcohol was at the centre of both of the couple’s bad habits.

The zero scene in Europe was already expansive, with 10 percent of the beer market being non-alcoholic. Within 45 weeks, he was 45 kilograms lighter, no longer using a sleep apnea machine and had a resting heart rate of 20 beats per minute less than before.

After finishing his assignment with Heineken, Caulter returned to New Zealand in September of 2021. After two weeks in MIQ and another lockdown, Caulter enjoyed a zero-percent beer.

However, New Zealand did not have many zero options outside of imported products. With extensive experience, Caulter wanted to expand New Zealand’s zero-percent choices to include full flavour, naturally brewed, alcohol-free beer.

At the beginning of March 2022, Caulter began State Of Play Brewing, New Zealand’s only zero-alcohol brewery.

Caulter launched an IPA, followed by a dry-hopped Pale Ale in November, and later this month, he will launch a world-first fusion brew of Sunbreaker Ale with ginger, lime, and honey.

The latest supermarket data has revealed that State OF Play Brewing has had a significant year, its volume growth to the craft category in the past six months, placing the company as the 6th most considerable volume growth contributor of all craft brands. Nationwide, State Of Play Brewing has 30 percent distributions, and with the upcoming ‘dry-July’ month, State of Play Brewing’s zero-percent beers are well positioned.

The zero-alcohol category in New Zealand has exceeded two percent of total beer, with growth at 65 percent, with the market first propelled by major brands such as Heineken. The growth and popularisation of zeroalcohol beer have opened up opportunities for independent brand growth as consumers move away from alcohol-removed pilsners to new, fuller, flavourful brews.

“This is the shift from drinkers needing a zero (functional requirement) to want a zero (emotional and social benefit). It’s no longer shameful taking a craft zero to a BBQ.”

Caulter shared that the increased quality of zero-alcohol beers has directly caused a decline in mid-strength beers. The CEO predicted that in 18 months, the zero-alcohol market would get closer to a four percent market share. With consumers demanding high quality, Caulter stated that alcohol removal does not provide the same experience of the taste of an IPA or Hazy, which is where State oOf Play Brewing has decided to brew with a new yeast strain that ferments by converting only simple sugars, ensuring a