Grant Caunter was a big beer drinker. It was pretty hard not to be when you’re the global director of craft and variety beer for Heineken based in Amsterdam. However, although he loved beer, he wasn’t that keen on its alcohol content, as it was having a negative impact on his health.
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When he couldn’t find any great tasting zero alcohol beers, he decided to take on the challenge himself and today he is the owner of New Zealand’s most successful independent non-alc beer brands – State of Play. Grant brews his thirst quenching zero beers in Napier.
What’s your background?
I’m a beer tragic!. 25 years working for DB Breweries (Heineken) in lots of great roles across sales, marketing, insights and innovation. It is such a consumer centric industry that evolves at a fast pace and innovation a key driver for success. I worked in New Zealand, Australia and finally in Heineken HQ in Amsterdam. This is where I had my dream job as the Global Director of Craft and Variety Beer – a segment worth a staggering 5 Billion Euros a year to Heineken globally. It was my job to support all the different Heineken operating companies develop a craft beer program as good as the one here in New Zealand.
How did you come up with the idea of brewing 0% beer?
While I still love beer, I fell out of loveof alcohol. Three months in the covid lockdown in Amsterdam all my bad habits were under the spotlight and 30+ years of beers and wines and happy hours meant I was 145kgs, a high resting heartrate, sleep apnea machine, in a constant fog and all just a bit aimless and not in control. So at a time when there was uncertainty (we didn’t even know how to get the family back to NZ).
I committed to take back control and started Dry July in 2020, got walking 10kms every day and went on a calorie deficit. That next year I dropped 45 kgs, got my heart rate into the high 40s, stopped using the sleep apnea machine and… Grant 2.0! In Europe zero beers are already very popular so I could still enjoy a beer. No-one cared what you were drinking, it was more important to be together enjoying the company. That was also the end of corporate life and we returned to NZ. It was a good time to do something for myself. My need for a good beer and entrepreneurial itch combined for the launch of State of Play Brewing co – New Zealand’s only dedicated alcohol-free brewery. There are quite a few breweries that have a non-alc in their range – State of Play is the only one that has the total focus to give Kiwis the choice of good beer regardless of the alcohol content. The business model I have used is to contract brew at BStudio in Napier and invest in different experts to support the company as it enters each growth stage. It has been fast paced approach as this is a high volume and low margin segment. No prizes being small in beer.
After two years State of Play has three flavours (and one more on the way) across 500 retail venues plus bars and restaurants. The website also handles a quarter of our sales to some amazing true fans. We are currently producing about half a million cans of beer a year and we are growing +76% year on year.
What’s your brewing background?
Actually none. Not my area of strength. I am a very good taster of beer and I know what I want out of a recipe. I love the design and innovation side plus the joy & drama of sales & marketing (they are basically the same thing). So best I support the brewing team with all the innovation coming into the category to continue to improve the quality of the beers and the drinker experience.
What were some of the challenges you faced in creating 0% beer?
I was launching a brand no-one trusted, in the most traditional categories, via the least profitable channel in a segment most people believed was going to be totally shit! The challenge was to share my belief and launch first. The growth of zero beer follows the same pattern in every market – New Zealand has been the last to exit covid and with it all the global trends of wellness, moderation and personal care/responsibility. We just needed to catch up. Fast forward two years and I believe New Zealand has the best zero beers on the planet. The small batch genius of the brewers and the most glorious new world hops from Motueka create amazing tasting brews. State of Play has recently been awarded three medals from three beers at the Australian International beer awards – the most of any brewery. That’s very cool, and a big well done to the brew team in Napier.
How did you set about convincing consumers and retail partners of the beer?
From the beginning we have focused on 1000 true fans. Built from face-to-face interactions at tastings, festivals, events. Stories shared online and through the weekly State of Play newsletter. Awareness from far reaching slots on Seven Sharp and Kia Ora magazine. Really good tasting beer, from a brewery with a clear purpose. Now these fans are the promoting engine, sharing with their friends and family. Pulling beer off the supermarket shelves and pushing the stores to range. In the beginning we gave away more than we sold – as nothing beats beer on the lips. Now the numbers do the talking and State of Play is New Zealand’s fastest growing brewery – and all we do is non-alc – how good!
Do you have any new products on the horizon? Last summer we launched a mix pack with two cans of each flavour – it has been a real hit. More than a trial pack drinkers will buy each week so they have the choice of a hoppy pale ale, refreshing summer ale of big body IPA. The next release will be great for the endless summer of bbqs, beaches and booze free.
What else has changed personally for you as you’ve developed State of Play?
My Dry July is now into the fifth year. Those first couple of years I enjoyed the personal transformation with the fog lifting, losing weight and committing
to be and do better. Then the thrill of doing lots of things for the first time as a beerpreneur. Recently I have enjoyed the wider community of beer fans enjoying moderation and alcohol free and with the brand more visible I get a buzz from seeing New Zealanders change their attitude to drinking, to be closer to those experiences I had in Europe.
What’s the growth opportunities of low alc beverage market?
New Zealand Zero alc share of beer is just over 2%. In Europe it is over 10% so we have a lot of upside for the category. For sure the big international brands will start to get busy in this market when the size of the prize is worth more. So State of Play needs to be on the podium of brands when more and more beer drinkers try non-alc and are converted to enjoying a zero regularly.
