The Big Question: Will CBD drinks be the new way to relax and socialise?

euronews (in English)

In Europe, 41% of people who don't drink alcohol are under 35 but what does this mean for the drinks industry? Founder of the UK’s largest independently owned soft drinks brand, Trip, discusses the changing consumer demands for alcohol-free beverages.

Transcript

00:0037% of Gen Z are teetotal.

00:03Show me someone in your life who isn't experiencing a moment of stress every day.

00:06We're the fastest-growing food and beverage company in the UK in the last 16 years.

00:16Welcome to The Big Question,

00:18the series from Euronews where we delve deep into the world of business.

00:22Today, I'm joined by Olivia Ferdie, the co-founder of Trip,

00:25the UK's largest independently-owned soft drinks brand.

00:28Thank you very much for joining me today.

00:30For those who aren't familiar with it, can you explain what Trip is?

00:33Trip is a wellness brand.

00:34We have a range of functional drinks with lots of powerful plant-based ingredients,

00:38as well as supplements, gummies, powders.

00:41So, your drinks kind of sit broadly in the non-alcoholic, alcohol-free category.

00:44Exactly. How big is this market in Europe?

00:46Huge. So, functional drinks, as they call them.

00:49In Europe, it is a 32 billion euro market, which is very exciting.

00:54It's a huge market and we're seeing massive trends and shifts in preferences

00:58around people seeking specific alcohol alternative products.

01:02Interesting. Okay.

01:03And this, as you called it, functional drinks market,

01:06you said it's worth 32 billion euros.

01:09How has that developed over the last five years

01:11and what's the projection going forward?

01:12So, that represents part of the broader soft drinks category

01:16and some of the longer-standing segments within that

01:20that you might be familiar with, things like energy,

01:22drinks that have benefits.

01:23So, something that has an added ingredient to help your mind or body function

01:28in the way that you want it to.

01:29So, energy is probably one of the more familiar categories,

01:32but in soft drinks more generally,

01:34those functional categories that Trip is leading,

01:36for example, calm or relaxation, is incredibly new.

01:41Trip is only five years old.

01:42Our work in Europe specifically is less than that even.

01:45So, it's very much early days,

01:46but indicated as a key driver in the overall growth of soft drinks.

01:50So, then looking a little bit at your personal story,

01:58you founded Trip back in 2019.

02:00Yeah.

02:01And then you've seen some kind of phenomenal growth over the past two years.

02:04Can you tell me a little bit more about that?

02:05I'm on a mission to create these moments of calm and everyday chaos.

02:09It's been going five and a bit years now.

02:11We've grown incredibly quickly.

02:12That comes with its own challenges, but it's been an incredible journey.

02:16We sell in over 30,000 stores across Europe, the UK, the USA.

02:20We're the fastest growing food and beverage company in the UK in the last 16 years.

02:24We've topped the Sunday Times 100 twice, which is unheard of.

02:28So, you can imagine the kind of hecticness that comes with that,

02:31but we've raised over 25 million euros of funding.

02:35We are the largest privately owned soft drinks company in the UK

02:38with big ambitions across the US and Europe.

02:40So, very excited.

02:42What do you think has really driven your success?

02:45I would say everything about the product we are obsessed about.

02:48It's got to be the most delicious drink you've ever had.

02:51Not the most delicious functional drink.

02:52Not the most delicious healthy drink.

02:54Not the most delicious low sugar drink.

02:56The best tasting thing you've ever had.

02:58Same with the brand.

02:59Every touch point needs to tell you a story,

03:01because we could never make health claims.

03:02We could never explain a lot to customers

03:05about this entirely new category and the benefits it had.

03:08We had to use everything about the brand to translate that,

03:11whether it's the calming pastel aesthetic,

03:13it's the shape of the can, the feel of it,

03:16the size of the bubbles, everything about it.

03:18We thought, is this a calming bubble?

03:20Or literally product obsessed.

03:22But that all comes down to making sure we can help

03:25the most number of people with their daily chaos.

03:28Do you think there is a movement away from alcohol consumption?

03:31Yeah, I think it's helpful to also break it down by demographics.

03:34So, there is a general trend in January, the start of the year,

03:37particularly supported by the work that the Dry January campaign has done

03:41to facilitate people looking for options.

03:44It's easier than ever to find something alcohol alternative.

03:46There are many people projected to have participated in 2025.

03:50In Europe, it's 17 million participants.

03:53But beyond January, I think as we all know,

03:55there is a greater shift towards moderating alcohol intake

03:58or assessing different ways to drink more healthily.

04:01Gen Z in particular, when we're talking about alcohol,

04:0537% of Gen Z are teetotal.

04:09Wow.

04:09In Europe, 41% of people who don't drink alcohol under 35.

04:14It's definitely a younger demographic.

04:17I don't want to say trend.

04:18It's factual.

04:19It's customer behavior.

04:20And actually, even above that,

04:22while some of the older generations have a longer history or culture of drinking,

04:26we're seeing that moderated within those demographics as well.

04:30So, it's not just something for January,

04:32but the younger generation, particularly Gen Z,

04:34are very excited about alcohol alternatives

04:37and actually are a big proponent in choosing

04:40where the group might spend their evening or their weekend.

04:43So, it has a big impact in the retail and hospitality sector as well.

04:46And how do you see this market continuing to develop?

04:49The Gen Z trend that I mentioned,

04:51that customer shift where they're looking for alcohol alternatives,

04:54they didn't grow up going to the pub looking for a gin and tonic.

04:57So, they're not looking for a 0% gin and tonic

04:59or an alcohol-free gin and tonic.

05:00They're looking for something completely different.

05:02And that is exciting because that's where Tripp comes in

05:04and where we can cater to this really evolving need.

05:07With the functional drinks market being so deeply linked to this change in market

05:11of people moving away from alcohol consumption for socialising or relaxing,

05:15we've seen other drink trends where there's a point where coconut water was everywhere

05:19or hard seltzers were going to be the next best thing

05:22and they kind of boom and then they disappear.

05:24Do you think the functional drink space has potential to be not justified?

05:28Definitely. I think if we zoom out from functional,

05:30there's a broader conversation about health.

05:32For me personally, I've noticed a lot of narratives and engagement since COVID

05:36and the understanding that what you consume directly impacts your mental health

05:40and your physical health.

05:42That goes beyond January and that goes beyond fads and trends.

05:45I say to myself, show me someone in your life

05:47who isn't experiencing a moment of stress every day.

05:51And sadly, whether it is your mum, your friend, your colleague, the bus driver,

05:56we all have these feelings of tightening, of overwhelm, unfortunately.

06:00And you can't control the outside world.

06:03Unfortunately, I think the way the world is continuing to evolve,

06:07the scary landscape that we're looking at on a macro level, it's always going to be there.

06:10So there's always going to be that need, I think, for this sort of exceptional product.

06:15Thinking about expanding into new markets, are there any difficulties,

06:19particularly with maybe restrictions around CBD, for example?

06:22Yeah. Well, every market has different regulations with that specific ingredient,

06:27but that is one of about seven functional ingredients we have in our products.

06:32And each one actually does often have a nuance from a regulatory perspective.

06:36CBD specifically is quite challenging when you're looking at an international framework.

06:40It's essentially a patchwork of regulation.

06:43Obviously, with a background in law, it's helpful to break that down,

06:45but it definitely is more challenging, I think, than the typical food and drink sector.

06:49I think the US versus UK is a good example where it's quite different laws.

06:54I wouldn't say it inhibits growth, but it's definitely costly

06:57to not be able to consolidate your operations and your supply.

07:01But I think the opportunity in those markets is so great, we don't really see it as a challenge.

07:07And finally, what advice would you have for those who want to start a company

07:12or who want to grow their business?

07:14I would say double down in what you care about.

07:16Why are you doing the thing that you want to launch?

07:18Because there are so many people that tell you it's not possible.

07:21Right at the start, I had no idea how hard things could be,

07:25all the challenges that you have to go through.

07:27And I think some of that naivety is important to retain your energy

07:31and your passion, to be honest.

07:32But staying true to why you want to do what you do,

07:35because there will be days where it feels quite tough.

07:38So being able to hold on to your reason,

07:41that is bigger than the moment, bigger than the day or bigger than the problem,

07:44I'd say is pretty important.

07:46Okay, brilliant. Well, thank you so much for sharing your story with me today.

07:49And thank you for joining me on The Big Question.

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