A Global Shift: an open letter to the non-alc beverage industry
Chalu Diaries pt.4
Something profound is happening in the world of drinks.
Last week, Gallup reported that alcohol consumption in the U.S. has dropped to its lowest level since tracking began. But this shift isn’t confined to North America. Globally, a quiet revolution is underway — and it’s changing the shape of bar menus, grocery shelves, and drinking culture at large.
For many, especially Gen Z, this is more than a change in preference. It’s a redefinition of ritual. A move away from autopilot consumption toward intentional choices rooted in health, identity, and community. Alcohol, once central to celebration and social bonding, is being replaced — not with compromise, but with curiosity.
At Chalu, we saw this early. When the Chinese spirits market never really returned to it’s pre-Covid glory, we realized this wasn’t a temporary dip. Spirits weren’t just cooling off — the entire conversation around drinking was shifting. What once defined modernity and progress began to feel dated. More people were choosing clarity over blur, balance over bravado.
So we pivoted — not away from alcohol out of rejection, but toward something entirely new out of opportunity.
Our sparkling teas don’t aim to echo alcoholic counterparts. We’re not creating replacements — we’re crafting originals. Beverages rooted in place, layered with complexity, and designed for the same moments of celebration and ritual as a fine wine or spirit. Every bottle is built from cold-brewed Yunnan tea, aged on oak, balanced with native botanicals, and brought to life — without a single drop of alcohol.
And we’re not alone. The non-alcoholic category is bursting with innovation. Athletic Brewing Co. . recently surpassed $90M in sales, redefining what beer can mean in a post-alc world. Sylva , based in the UK and launched by Seedlip founder Ben Branson , is crafting non-alc distillates from trees and grains — not as proxies for whisky or rum, but as a new category altogether. Partake Brewing continues to grow its footprint in Canada with a line of crisp, low-cal, non-alc craft beer alternatives. These brands are paving the way forward.
Yet despite all the progress, the road ahead remains uncertain.
In China, we see enormous opportunity. According to Mintel, more than 40% of urban Chinese consumers say they plan to reduce or eliminate alcohol consumption entirely. But while consumption is shifting, industry mindsets are slower to evolve. On the macro level, many legacy players still treat non-alc as a compliance exercise — something to tick off a list, rather than an invitation to innovate.
That’s where I believe the future lies — in creation, not replication.
Non-alc beverages shouldn’t be a repetition of something else. They deserve their own craft, terroir, and cultural language. That’s the approach we take at Chalu. We don’t make sparkling tea to fill a gap. We make it because we believe it belongs — on a bar shelf, at a dinner party, in a gift box, on the table of tomorrow.
And that table is changing.
In the US, non-alc cocktails are being crafted with the same reverence as their spirited counterparts, complete with complex garnishes, storytelling, and sensory nuance. In China, where tea already holds deep cultural weight, and now outsells soda, there’s a growing appetite for new forms of tea-based indulgence — especially those that connect back to health, nature, and heritage. This intersection of tradition and innovation is where Chalu lives.
Our mission is simple: to craft drinks that feel good, taste exceptional, and offer a genuine alternative for a new generation of consumers.
And we do it from one of the most remarkable regions on Earth. Yunnan is a place of wild biodiversity – and by utilizing both the historical significance of our tea’s providence, and its present-day reputation as some of China’s best - with each bottle, we’re telling the story of a place, a moment & a movement.
Because what people are looking for now isn’t just “alcohol-free.” They want something that belongs. Belongs in the hand. Belongs in the ritual. Belongs in the culture of tomorrow.
The take-away is simple - let’s build that future — together
