As health concerns drive down the demand for alcohol nationwide, some distillers and vintners are turning to ultra-low-alcohol products to meet the market’s shifting preferences. In December, Brooklyn’s St. Agrestis introduced the Phony 1 Proof Negroni, a ready-to-drink cocktail containing just 0.5% alcohol.
This version contrasts sharply with the typical Negroni, which is 24% alcohol by volume. The company had previously launched a zero-alcohol Phony Negroni in 2022, which became a top seller but faced distribution limitations due to state laws restricting the sale of zero-alcohol drinks in many locations, including New York.
New York is one of approximately 15 states that do not permit liquor stores to sell non-alcoholic beer, wine, or spirits. This restriction has posed challenges for retailers and producers like St. Agrestis, who were eager to meet the growing demand for non-alcoholic options. To work around these regulations, New York liquor stores have looked for a legal loophole that emerged in 2019.
That year, the State Liquor Authority clarified the definition of alcoholic beverages, marking those with less than 0.5% alcohol as non-alcoholic. This allowed St. Agrestis to introduce its 1 Proof Phony Negroni, which contains just a fraction of the alcohol found in traditional spirits.
Pilot Program for Low-Alcohol Drinks
To test the market, St. Agrestis rolled out the Phony 1 Proof Negroni in a select group of 10 New York liquor stores. The product debuted ahead of “Dry January,” a month when many consumers opt to abstain from alcohol. Louis Catizone, co-founder of St. Agrestis, noted the uncertainty surrounding demand for ultra-low-alcohol drinks.
While retailers are hopeful, it’s too early to determine how well the Phony 1 Proof Negroni will perform. Nonetheless, the move represents an effort to provide a legal and innovative solution to meet the growing consumer interest in low-alcohol options.
The alcohol industry has seen stagnation in sales since the pandemic surge, with overall alcohol sales totaling $112.9 billion in 2024. In contrast, the demand for non-alcoholic beverages—beer, wine, and spirits—grew by 27% in the same year. This shift toward lower-alcohol and non-alcoholic options reflects a broader cultural trend towards wellness and moderation.
For example, Michael Correra, owner of Michael-Towne Wines & Spirits, added the Phony 1 Proof Negroni to his shelves in response to requests from customers seeking low-alcohol alternatives, particularly during the slow January sales.
Exploring New Low-Alcohol Options
Other companies are following suit by introducing ultra-low-alcohol drinks to cater to this evolving market. Italian prosecco maker Mionetto recently launched Mionetto ONE, a sparkling wine with just 0.7% alcohol, to appeal to the New York market. Additionally, New York-based vintner Rachel Martin introduced a 3.5% ABV Syrah under her Oceano wine label.
Martin initially considered creating a 1% proof wine but opted for a higher alcohol content to ensure the wine’s taste met her standards. Such products are positioned to bridge the gap between non-alcoholic and traditional alcoholic beverages, offering a flavorful option for those looking to reduce their alcohol intake.
The growing popularity of ultra-low-alcohol products in New York could eventually influence changes in state law. Last year, state Senator Michelle Hinchey introduced a bill aimed at allowing the sale of non-alcoholic versions of alcoholic beverages in liquor stores.
This bill has faced opposition from supermarkets and convenience stores but has sparked ongoing discussions about revising alcohol regulations. In the meantime, producers like St. Agrestis and Giesen are expanding their offerings to cater to a market where reduced alcohol content is increasingly seen as a desirable alternative.