Vera Spirits, sober alternative to alcohol
Vera Gino. Photo: Vera Spirits
Zero-proof beverages are a major global hit and the Slovenian company Vera Spirits has made a name for itself in the alcohol-free spirits market, exporting overseas to countries such as the US and Canada.
The company was founded by Luka Nagode and Urška Dvoraček in Ljubljana in 2019, initially as a distillery to make gin and rum, but soon switched to innovative production of exclusively non-alcoholic spirits.
They rolled out their first product in 2020 and have since established themselves internationally. Today, "we are reaping the fruits of our own development, betting on organic growth", Nagode says.
Their range includes a non-alcoholic alternative to gin, mainly intended for mixing with other drinks, a non-alcoholic drink mainly meant to enjoy on its own, and a bottled non-alcoholic cocktail.
"At first we had a more extensive range of products, but over time we have focused on the drinks that customers love best," Nagode says.
Production is based on two methods, steam extraction and maceration. In the former, herbs and spices are exposed to steam, which picks out their flavours, while maceration involves soaking and boiling the botanicals in water.
The steam distillation is thought to produce a more fresh and delicate drink than that produced by maceration, which is used to obtain softer botanicals and their juices.
Demand for non-alcoholic spirits is quite widespread abroad, and is also growing in Slovenia. Nagode believes this is mainly because of the increased public awareness of the harmful effects of alcohol.
"Given the fast everyday tempo, people are also finding it harder to afford to be less productive as a result of alcohol consumption, but they are not willing to give up socialising and enjoying adult beverages without compromising on the taste and presentation," he says.
"Such drinks are well-known in more educated markets, but competition is already quite strong. In emerging markets, educating the public entails substantial investment in marketing. As a young company we cannot afford this so our customers mainly come from abroad."
Apart from the US and Canada, their most important markets are Australia, Chile, Portugal, the Netherlands and Poland. "We are growing together with small distributors, who like us are in early stages of their journey."
In Slovenia, they sell their beverages through their website, distributor Evino and some retail chains.
Overall, they sold almost 15,000 bottles last year, which Nagode says is a bit fewer than the year before, but they remain upbeat.
"We are obviously facing challenges. We were initially financed by external investors. We used up the funds, we wanted to gain market share at a loss, and in the meantime we needed a recapitalisation, which wasn't successful. We were undercapitalised and on the verge of bankruptcy, but somehow we pulled through. We are now back on an eventful path of growth," the entrepreneur explains.
Outsourcing production was an important milestone, allowing them to focus more on development and marketing.
Nagode is proud that they made the initial steps, including development and testing, themselves. "At that time, we didn't have any other option. Today there are agencies on the market that can help you develop such products, but back then we had to do everything ourselves."
The development and production team included experts such as those on food technology and certification. The latter is crucial, being that large customers demand above-standard certifications.
The awards they have won for their products have helped them make a name for themselves. Major ones include two in a row from The Spirits Business magazine as well as their success in the London competition, which is considered the most influential in the field. "Of course, you have to be able to monetise all these awards," Nagode points out.
