2026-07-09
Drink Dry, a Dubai-based retailer, importer and distributor of alcohol-free beverages, says zero-ABV spirits alternatives could become one of the fastest-growing drinks segments in the Middle East after a sharp rise in sales over the past year.
The company, which operates across about 700 distribution points in the region’s on- and off-trade channels, reported overall growth of 92% in 2024 and a further 63% increase in the most recent year, according to comments from founder Erika Doyle published by The Spirits Business on Tuesday. Within that business, sales of non-alcoholic spirits rose by 242% over the last year, outpacing beer alternatives, which still account for the largest share of Drink Dry’s sales at about 60%.
Drink Dry began trading in 2021 and has built its portfolio around alcohol-free versions of established brands as well as smaller specialist labels. Its range includes Diageo’s Gordon’s 0.0% and Tanqueray 0.0%, along with Lyre’s, Crossip, Sea Arch and Caleño. Doyle said spirits alternatives stand out because they offer familiar flavor profiles for bars, restaurants and other licensed venues, making them easier to use in recognizable mixed drinks.
That shift matters beyond the niche alcohol-free category. If zero-ABV spirits continue to gain ground in Gulf markets, beverage companies may need to adjust portfolios, shelf space and distribution agreements as demand spreads across categories that have long been led by beer alternatives or traditional imported spirits.
Doyle told the trade publication that large international brands entered the market more visibly last year after Drink Dry initially helped develop smaller craft labels in the region. She said major names were likely to take market share but argued that demand was broad enough to support several players. She pointed to Crossip as one example of early traction, saying Drink Dry accounted for 93% of the British brand’s total revenue after working with it since 2022.
The company is also expanding access through mainstream retail and travel channels. In recent months, Drink Dry has placed Diageo’s non-alcoholic products in supermarket chains including Waitrose and Spinneys. Earlier this year, it also secured a listing for Tanqueray 0.0% with Emirates on the airline’s U.K. routes. Doyle said the product is being served in cocktails such as a Basil Smash and a Breakfast Martini for business- and first-class passengers.
The company expects more launches to follow. Doyle said Pernod Ricard’s Beefeater 0.0% is due to enter the Middle East by the third quarter, while Ceder’s has been discontinued in the market. She also said Drink Dry is working to bring Almave, the alcohol-free agave brand backed by Pernod Ricard and founded by Lewis Hamilton, into the region this year.
The United Arab Emirates remains the center of that strategy. Doyle described the UAE as the main entry point for brands seeking to establish themselves in the broader Middle East. Drink Dry’s strongest position is in the UAE, though it also distributes across the Gulf Cooperation Council, including Bahrain, Kuwait, Oman, Qatar and Saudi Arabia.
Those markets do not all operate under the same conditions. Doyle said Saudi Arabia and Kuwait present particular challenges because of what she described as a no-alcohol culture. Even so, that environment may also create room for alcohol-free products that can fit local norms more easily than conventional spirits.
Recent geopolitical instability has complicated that growth story. Doyle said conflict in the Middle East caused Drink Dry to lose 40% of its sales at one stage, hitting higher-end hospitality especially hard, including fine-dining restaurants. She said the company, which employs about 20 people, responded by cutting marketing spending rather than reducing salaries or placing staff on unpaid leave.
According to Doyle, business has started to recover but may not fully rebound until the fourth quarter. She said local residents helped support restaurants and bars during the downturn by continuing to spend domestically, suggesting that demand in the UAE proved more resilient than many operators had expected.
For global drinks groups such as Diageo and Pernod Ricard, that resilience offers another signal that alcohol-free products are becoming a more serious commercial category in the Gulf. For airlines, supermarkets and hospitality operators, it also points to a broader change in how beverage menus are being built for consumers who want adult-style drinks without alcohol.