As the consumption of alcohol decreases among Canadians annually, a distillery in Sudbury, Ontario, notes a rising trend in the popularity of non-alcoholic options at its cozy cocktail bar. Statistics Canada’s latest report reveals a 1.6% decline in alcoholic beverage sales to $25.8 billion in the fiscal year 2024-2025, despite a 1.6% price increase during the same period, marking the most significant drop in alcohol sales in two decades.
Shane Prodan, the proprietor of Crosscut Distillery in Sudbury, acknowledges the shifting consumer preferences towards reduced or zero alcohol consumption. Prodan emphasizes catering to this demand by offering an extensive selection of mocktails, boasting one of the largest non-alcoholic cocktail menus in the area. The distillery produces various spirits, including vodka, gin, whiskey, and liqueurs, with a small cocktail bar adjacent to the production facility.
Approximately 20% of the cocktails sold by Prodan are now non-alcoholic, reflecting the changing drinking habits of customers. Prodan highlights that to attract clientele who frequent bars less often, the business focuses on hosting events like run clubs, book exchanges, and cocktail mixing classes to provide experiential offerings beyond just drinks.
Despite the overall decline in alcohol sales, Canadian domestic producers are capturing a larger share of the market. In the 2024-2025 fiscal year, domestic sales accounted for 60.6% of total alcohol sales in Canada, up from 59% the previous year, as per Statistics Canada data. Mireille Morin, co-owner of Rheault Distillery in Hearst, Ontario, attributes her increased sales at LCBOs to the “buy Canadian” movement and LCBO’s removal of American liquor from shelves in March 2025.
Morin notes a shift in consumer preferences, particularly among young adults, towards purchasing locally-made, high-quality products. Rheault Distillery has chosen to enhance its spirits with Canadian ingredients such as spruce needles and Labrador tea, foregoing the production of non-alcoholic beverages in alignment with this trend.