As alcohol consumption declines, cannabis-infused drinks are entering the mainstream and displacing traditional alcohol sales. In markets like Minnesota, these new beverages already account for over 15% of total alcohol sales, signaling a massive shift in consumer preference.

When De Soi launched, retailers and investors dismissed the non-alcoholic category. CEO Scout Brisson adopted a "not if, it's when" mindset, maintaining belief despite widespread skepticism. This conviction was essential for persevering until the market and major players like Target inevitably came around.

Entrepreneurs often chase trending markets. However, even a market in slight decline, like craft beer, can be enormous ($28 billion). Capturing a tiny fraction (e.g., 0.05%) of such a market can still result in a nine-figure business, making it a viable opportunity.

Despite narratives of decline in the West, the global alcohol industry is thriving. This resilience comes from two key trends: consumers "drinking less, but better" by choosing more expensive, premium beverages, and the rapid growth of alcohol consumption in large emerging markets, especially among young people and women.

Athletic Brewing's success comes from rejecting the standard industrial process for non-alcoholic beer. They took a capital-intensive path, building their own breweries to develop a proprietary method that creates a product on par with top craft beers, fundamentally changing category perceptions.

Contrary to headlines, Gen Z's drinking habits are nuanced, not absent. Consumption is delayed by later workforce entry. In-the-workforce Gen Z drinks similarly to prior generations but practices 'zebra striping'—alternating alcoholic and non-alcoholic drinks for more conscious consumption.

The beer industry is a powerful training ground for marketers. With functionally identical products, success hinges purely on branding, teaching marketers how emotion, advertising, and sponsorships drive consumer choice when product differentiation is nonexistent.

Major beverage companies are turning the teetotalism trend into a high-margin opportunity. They market non-alcoholic beers at prices comparable to their alcoholic counterparts. Because these products are not subject to alcohol taxes, companies can achieve significantly higher profit margins, effectively monetizing sobriety.

To land major retailers like Target, Waterboy focused on incrementality. They showed how their strong social presence and differentiated product would attract a new, younger Gen Z demographic to the store, increasing the retailer's overall category sales, not just replacing an existing product.