Winnipeg Free Press (Newspaper) - October 3, 2025, Winnipeg, Manitoba
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BUSINESS
FRIDAY, OCTOBER 3, 2025
Labatt launches alcohol-free Michelob
as Canadians seek alternatives
S
OMETHING different is increas-
ingly brewing at bars across the
country. The beer pours the same,
smells the same and even tastes the
same.
But there’s one thing missing: the
hangover.
Demand for alcohol-free beverages
has been growing for some time as
Canadians increasingly shy away from
drinking. And longtime brewers want a
piece of the action.
“It’s the growth of the category that
opens the door for us to bring more of
our iconic brands over into non-alco-
hol,” said Doug Port, vice-president of
ready-to-drink and non-alcoholic bever-
ages at Labatt Brewing Co. Ltd.
At a small pub inside Labatt’s down-
town Toronto headquarters, Port sat by
the wide-countered bar featuring two
of its best-known beers — Budweiser
and Labatt 50 — on tap. He has been
spearheading innovation in ready-to-
drink cocktails and non-alcoholic bev-
erages at the company’s brewery in
London, Ont.
The company debuted the non-al-
coholic version of Michelob Ultra on
Thursday, expanding its existing array
of booze-free beverages in Canada. It’s
the latest of the brewer’s non-alcohol-
ic offering as it hopes to capitalize on
shifting consumer tastes.
Non-alcoholic beverages have seen
double-digit growth in Canada over
the years, according to a 2024 report
by marketing agency NIQ. And non-al-
coholic beers dominate that share, ac-
counting for 76 per cent of total non-al-
coholic beverages sold.
While growth for non-alcoholic
drinks is still in the early stages, Port
said it now represents about four per
cent of Labatt’s beer category by vol-
ume.
He thinks there’s much more room to
grow.
“We know that in markets like Eur-
ope, non-alcoholic beer represents 10
per cent of the beer industry,” he said.
“We can more than double the size of
the category here in Canada, which
opens the door for us to bring more
choices to Canadians.”
Sales of beer dropped 4.5 per cent be-
tween 2023 and 2024, Statistics Canada
data shows. It’s the eighth consecutive
and largest sales volume decline since
the agency started tracking alcohol
sales in 1949.
“Simply put, consumers are looking
to drink less,” said Candace Baldas-
sarre, senior research analyst at Min-
tel.
“That therefore means that these
breweries are facing competition from
other non-alcoholic brands, so they
need to pivot and innovate if they want
to still remain competitive,” she said.
Large breweries have an advantage
though: they already have a strong cus-
tomer base.
Baldassarre said consumers are like-
ly to pick a non-alcoholic version from
the brewer they’ve loved for years be-
cause they know the taste.
“It has to be quality, because con-
sumers aren’t just looking for any
non-alcoholic beer,” she said. “They
want something that tastes and feels as
comparable as possible.”
At Labatt, it takes months to match
the flavour profile of the original beer.
On average, Port said a beer launch
like Michelob Ultra Zero takes roughly
18 months to ensure the taste sits right
with customers.
Generally, a non-alcoholic beer starts
the same brewing and fermentation
journey as its boozy counterpart, but
with an extra, complex step of separat-
ing out the alcohol. Labatt uses low-tem-
perature de-alcoholization methods,
such as vacuum distillation, which re-
moves the alcohol but preserves its fla-
vour and aroma.
And just like any new product, it goes
through several rounds of testing with
focus groups and taste experts.
“The bar is high,” Port said.
That’s because this isn’t a new prod-
uct but an iteration of a beer with ex-
isting fans who are expecting that the
brewery would deliver on the flavour
and feel.
Labatt installed a $5 million rectifi-
cation system to better separate alcohol
from its beers at its London, Ont., brew-
ery in 2016.
“With this technology, it’s a process in
which it really ensures we match very
closely that of the existing beer brand’s
taste characteristics,” Port said.
Other major breweries have also
realized that’s where the demand is
headed. Molson Coors, for example, has
a range of alcohol-free beers such as
Coors Edge that aim to mimic the taste
of its originals.
Labatt first ventured into the alco-
hol-free space in 2016 with Budweiser
Prohibition Brew, then Corona Cero a
few years later.
However, the brewery doesn’t ne-
cessarily see the non-alcohol category
operating like other big growth cat-
egories seen over the last 10 years,
such as in craft, where brewers need to
launch many brands, Port said.
Zero-proof drinks are more popular
among young Canadians. A 2023 Statis-
tics Canada survey found 67 per cent of
Canadians aged 18 to 22 reported not
drinking any alcoholic beverages in
the previous week, while an average of
53 per cent abstained in the other age
groups.
Port said young Canadians are a
big source of growth for the brewer’s
non-alcoholic beers.
“Perhaps they’re the designated driv-
er, they’re a group of friends on a social
occasion, maybe they have a big exam
the next day,” he said. “Whatever their
reasons might be, it is a big pocket of
growth behind the non-alcoholic beer
category.”
Baldassarre agrees. She said the shift
is going to continue as more health- and
budget-conscious young Canadians
gain more importance in the markets,
she said.
“We’re really seeing a shift in how
people consume, and how people care
about their health,” she said.
The trend picked up after the Can-
adian Centre on Substance Use and Ad-
diction updated guidelines on alcohol
use in 2023, saying that anything over
two standard drinks a week raises the
likelihood of health consequences, in-
cluding cancer. Health Canada funded
the research that resulted in the up-
dated guidelines, but has not endorsed
them.
Even as momentum for non-alcohol-
ic drinks has continued, Baldassarre
thinks the growth isn’t necessarily go-
ing to accelerate.
“There will be gradual increase and
steady increase, but this isn’t a run-
away train,” she said.
— The Canadian Press
RITIKA DUBEY
SAMMY KOGAN / THE CANADIAN PRESS
Budweiser Zero, Corona Cero and Michelob Ultra Zero non-alcoholic beers are shown at Labatt’s office in Toronto last week.
Superior Court
authorizes class
action against
Horne smelter
MONTREAL — A Quebec Su-
perior Court judge has author-
ized a class-action lawsuit on
behalf of citizens who claim to
have been affected by emissions
from Glencore’s Horne smelter in
Rouyn-Noranda, Que.
In a 50-page decision released
Wednesday, Superior Court Judge
Daniel Dumais authorized the
lawsuit against the copper smelter
and the Quebec government.
The plaintiffs had wanted to
claim damages dating back to
1991, but the judge limited that to
2020 due to a statute of limitations.
The Swiss-owned smelter has
come under fire in recent years
for arsenic emissions that Que-
bec had allowed to be 33 times the
provincewide standard.
In 2022, the province said it would
permit the smelter to emit arsenic
levels five times the norm, but the
company had only succeeded in
getting its annual average down to
15 times the standard in 2023.
Justice Daniel Dumais wrote
in his decision that the plaintiffs’
claims of damage were based on
abundant evidence of contamin-
ants that exceed the norm.
He also noted a 2022 report by
Quebec’s public health institute
that indicated that past and cur-
rent exposure to arsenic and cad-
mium concentrations from the
smelter could put residents at a
higher risk of cancer.
The allegations contained in the
lawsuit have not been tested in
court.
A spokesperson for Glencore
Canada said it would not comment
on matters before the court.
However, Fabrice de Dongo
added: “We are confident that
the Horne smelter’s operations
are safe for the population. They
were safe 20 years ago when ar-
senic concentrations in the air
were much higher, and they are
safe today when approximately
99 per cent of the urban area of
Rouyn-Noranda has 15 ng/m³ or
less of arsenic in the ambient air
(annual average).”
The class action also targets the
Quebec government over “the in-
adequacy of government and min-
isterial actions since 1979, and of
the remediation authorizations
issued since 2007.”
The plaintiffs are claiming dam-
ages that could reach or exceed
$315,000 for each member of the
class action.
— The Canadian Press
;