• by Erik Oster , April 9, 2024

For larger, established breweries searching for growth, often the best bet comes without alcohol.

Bend, Oregon based Deschutes Brewery – the 21st largest brewer in the U.S., and 11th largest craft brewery, according to the Brewers Association -- has revamped its nonalcoholic beer offerings, including the introduction of a nonalcoholic version of the brewery’s flagship IPA.

Deschutes is launching Fresh Squeezed Nonalcoholic IPA, as well as introducing a redesign for the non-alcoholic and flagship version of its Black Butte Porter. A release from the brewery positions the move as involving five years of research and $5 million in investment, incorporating brewing tech company Sustainable Brewing Technologies’ BrewVo equipment and proprietary brewing method.

“Our non-alc brewing process is unique because of the specialty equipment and proprietary processes we’ve developed, [resulting in] great tasting, full-fidelity non-alcoholic beer,” Deschutes Brewery CEO Peter Skrbek told Marketing Daily.  He claimed the brewery’s ability to retain full control of recipe innovation and quality control, scheduling, and supply management contrast with other breweries who rely on third-party partners for non-alcoholic beer contract brewing, co-packing, and off-site pasteurization.

The brewery also made a concerted decision to focus its non-alcoholic offerings around its two most popular beers, introducing Nonalcoolic Black Butte Porter ahead of the recent IPA launch. Skrbek explained that the decision stemmed from a nationwide survey the brewery conducted finding that 94% of people who drink non-alcoholic beer also drink beer with alcohol.  To promote the effort, Deschutes is marketing around a message of “All For Beer, Beer For All,” which Skrbek said reflected brewing not just for all people, but also for all occasions.

“Our five years of non-alcoholic research and development began in 2018 when we recognized a shift in consumer preferences and acted on the need to develop non-alcoholic beers that didn’t sacrifice flavor, aroma, mouthfeel or appearance. We like technical brewing challenges and this one was very multidimensional,” Skrbek explained. “The team began exploring recipes in partnership with SBT and made a non-alcoholic beer inspired by the dry Irish stout style called Irish Dark. We began with a dark beer because we wanted to start by establishing mastery around how to deliver great malt flavor and body before moving on to the bigger challenge of preserving hop character and aroma through the dealcoholization process.”

This eventually led to the launch of Black Butte Non-Alcoholic in 2022, inspired by the brewery’s porter-- which it says is the most popular version of the style nationally, and the release became the fastest-selling product in the brewery’s portfolio in 2023, according to Skrbek. With that challenge cleared, the company moved onto Fresh Squeezed, and invested in installing SBT’s BrewVo system at its production brewery to scale the product and meet demand.

In the latter half of last year, the brewery worked on packaging and label design for both Black Butte and Fresh Squeezed, across alcoholic and non-alcoholic iterations, to prepare for the launch of Fresh Squeezed Non-Alcoholic IPA.

“While Fresh Squeezed packaging received a light touch clean-up, Black Butte Porter and Black Butte Non-Alcoholic underwent a significant redesign. Introducing non-alcoholic versions of both brands provided an opportunity to create a level of consistency and cultural relevance in the packaging,” Deschutes CMO Julie Galbraith told Marketing Daily, adding that extensive consumer research gave the brewery confidence the new design would resonate with its fans, and that the brewery plans to maintain the designs for the foreseeable future.

For the more extensive redesign across Black Butte and other offerings, Deschutes teamed up with  artist Sam Larson, a first time partner.

“His illustration style perfectly matched the creative direction we envisioned for Black Butte Porter, Black Butte Non-Alcoholic, Obsidian Stout and Mirror Pond Pale Ale. Inspired by the physical landmarks of Central Oregon, these brands hold a special place in Deschutes Brewery’s history. We carefully considered their packaging evolution and drew inspiration from national parks for the redesign.”