Fernet-Branca owner invests in ‘alcohol-removal’ tech
Why does this matter?
Major spirits company invests in beverage tech startup Altr, whose alcohol-removal technology addresses the fast-growing low/no-alcohol trend expected to add $4B in value by 2028—directly relevant to BevTech founders exploring innovation opportunities in this space.
Highlights
Italian spirits group Branca International has made a strategic investment in Altr, a ‘flavour-first alcohol-removal’ technology company. Altr uses a technology called the Velvet Blade, which it claims can remove or reduce ethanol at a molecular level while retaining the aromatic profile and sensory identity of a beverage. The technology is said to give producers 'precise control’ over alcohol content and can be used across wines, spirits and other alcoholic beverages. The terms of the deal were not disclosed. Branca International’s portfolio includes its flagship bitter Italian liqueur Fernet-Branca and espresso liqueur Caffè Borghetti. Its president, Niccolò Branca, said: “Our role is to closely observe how the sector evolves and to invest in solutions that can support its development over time. “The future of the sector will not be defined by a choice between alcoholic and non-alcoholic products, but by a broader spectrum of options within the same drinking culture. “Altr represents a compelling technology because it expands the possibilities available to both producers and consumers, without calling into question the value, quality, or identity of the products themselves. It is an investment that looks to the future, approached with an open and industrial mindset.” Branca said the partnership does not change its business strategy, but instead reflects how the industry is evolving in the long term. The technology will allow full-strength and low-ABV premium options to ‘coexist within the same brand universe’. Branca’s infrastructure and scope, combined with Altr’s technology, are expected to create new opportunities for product innovation and market development for both companies. “We are proud to have Branca be part of our journey,” added Richard Schatzberger, CEO and founder of Altr. “Branca’s ‘novare serbando’ [‘innovate while preserving’] philosophy captures exactly what we believe in: honouring heritage while innovating for modern life. Together, we are creating exceptional beverages that preserve craft, elevate quality, and give people true choice in how alcohol fits into their social experiences.” IWSR forecasts global volumes of no-alcohol alternatives will grow by 36% between 2024 and 2029. Overall, the low-and-no category is expected to grow by US$4 billion in value by 2028, according to IWSR, with Gen Z influencing the category.
The Spirits Business
