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12 n e w h a v e n B I Z | F e b r u a r y 2 0 2 3 | n e w h a v e n b i z . c o m Dry Power Better Rhodes' growth fueled by boom in alcohol-free adult beverages By Liese Klein B efore you pour out your first shot of nonalcoholic whiskey, Andrew Chartier has some advice. Don't drink it straight or on the rocks. Add more of the "whiskey alternative" to a cocktail recipe than you would with the hard stuff. And be sure to sip slowly, enjoying the complex mix of flavors. "ese alcohol-free spirits that we're currently selling and what's out in the market right now really are designed to be made into a mixed drink," Chartier said, holding up a bottle of Mashville, a whiskey alternative made by Wil- ton-based Seir Hill. Sure enough, the Mashville holds its own in an Old Fashioned, the strong smoky flavor perfuming the glass and cutting right through the maple syrup used as a sweetener. Chartier, customer experience manag- er at nonalcoholic beverage distributor Better Rhodes in Madison, aims to help customers appreciate the wide range of "whiskey alternatives," mocktails and alcohol-free beers in stock at the company's showroom. He also helps make sampler packs and cocktail kits for Better Rhodes' 50,000 customers nationwide. at customer list is getting longer by the day: Better Rhodes' sales doubled in the last year and have consistently grown 10% to 20% month over month, said company founder Chris Becker. e company, which declined to disclose annual revenues, launched a wholesale business in late 2022 that is rapidly expanding, with grocery chains, hospitality groups and restaurants turning to Better Rhodes to curate nonalcoholic offerings. "We are really seen as kind of an expert in the space who knows what types of products and solutions to bring," Becker said. "In this last six months, I would say things have kind of really started to take off at a different velocity." Proven model Better Rhodes has grown from Beck- er alone in his Madison home office in 2019, to 15 employees in several locations, with an eye on a West Coast expansion sometime soon. e company's operations are cen- tered in Madison, with the showroom, warehouse and shipping department occupying adjacent units in a business park at 175 Fort Path Road, just south of Interstate 95. "We're getting out of what I call our bootstrap phase — we're looking at a seed round and accelerating our growth," Becker said. "We've kind of proven out the model and we're excited to see where else we can connect into the Connecticut infrastructure." e nonalcoholic adult beverage category — which includes beer, wine, spirits and pre-mixed cocktails — is just emerging into public consciousness as more people move away from booze for health and lifestyle reasons. Although its share has increased annually for the past five years, sales of booze-free products accounted for only 0.47% of total adult beverage sales in the U.S., accord- ing to NielsenIQ. Within that small per- centage, however, sales are booming, with sales of nonalcoholic beer up 19.5% in August 2022 compared to the year before; nonalcoholic wine is up 23.2% and nonalcoholic spirits up 88.4%, Niel- senIQ found. Alcohol-free beer maker Athletic Brewing, founded in Stratford and now with a major Milford presence, reported more than 100% growth in sales in 2022, capturing 55% of the market share of cra nonalcoholic beer in the U.S., and distributing its products in all 50 states. Becker said Better Rhodes provides a crucial service in introducing people to a category that is still in its infancy. "I guess most people still don't even know that these products exist," Becker said, gesturing at shelves full of cans and bottles from across the globe. Better Rhodes wants to educate and sell to drinkers looking for new options. e company's sweet spot is acting as a taster and curator of the dozens of new alcohol-free adult beverages that come online every month and helping fledgling brewers and distillers find a customer base. "Adult beverages" in this context mean quaffs with complex flavors that incorporate the bitterness, smokiness and sourness found in alcoholic drinks. Brewers, distillers and winemakers have jumped into the market with an array of products of varying quality. Some makers like Athletic and Seedlip have made it as far as supermarket shelves, but many others are entering the space. "What we try to focus on is the next generation of alcohol-free products," Becker said. "So, if you're coming to us, it's usually because it's something hope- fully new or it's curated." Better Rhodes accomplishes that cu- ration mainly through its website, which offers a full e-commerce store stocked with rare and new items, along with sample and combination packs. Customers can also shop and com- ment on beverages via an app and learn about new products through a podcast — or by stopping by the Madison show- room for tasting and advice. Startup mindset Becker brings to Better Rhodes a back- ground in soware startups and technol- ogy consulting; he moved to Madison with his family aer success in New York. Better Rhodes was born in 2019 aer he started looking for nonalcoholic drink alternatives while on vacation. PHOTOS | COURTESY A t A G l a n c e Company: Better Rhodes Industry: Nonalcoholic drinks distributor Top Executives: Chris Becker, Founder; Daniel Stiller, CEO & Co- Founder HQ: 175 Fort Path Road, Madison Website: https://www.betterrhodes. com/ Contact: 203-421-2574 Better Rhodes founder Chris Becker stands in front of the Madison company's curated range of nonalcoholic wines, which it offers online to both retail and wholesale customers.

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