Branca's Big Bet: Heritage Spirits Giant Backs Future of Drinking Tech

MILAN, Italy and NAPA VALLEY, CA – March 23, 2026 – In a landmark move bridging centuries of tradition with cutting-edge science, Branca International, the venerable Italian spirits group founded in 1845, has announced a strategic investment in ALTR, a Napa Valley-based beverage technology startup. The partnership pairs Branca's storied legacy with ALTR's revolutionary molecular-level ethanol management, signaling a profound shift in how the global beverage industry views the future of drinking.

The investment is not a pivot away from Branca's iconic portfolio, which includes brands like Fernet-Branca, but a calculated foray into the burgeoning market for high-quality, low- and no-alcohol beverages. It underscores a shared vision to expand consumer choice and create a more flexible drinking culture, one where the integrity of taste, aroma, and ritual is paramount, regardless of alcohol content.

Beyond De-Alcoholization: The Quest for Flavor Integrity

At the heart of the partnership lies ALTR's proprietary 'Velvet Blade' technology, a system that promises to solve the most persistent problem in the low/no-alcohol space: the loss of flavor. For years, producers have relied on methods like vacuum distillation or spinning cone columns, which often use heat that strips away the delicate volatile compounds responsible for a beverage's character, resulting in products often described as thin, sweet, or lacking complexity.

ALTR's patent-pending technology, which originated from research at the French state research center CNRS, takes a fundamentally different, "Flavor-First" approach. It employs an advanced, closed-loop membrane system that operates at a molecular level without heat. A primary "flavor shield" membrane allows water and ethanol to pass through while carefully retaining the vast majority of the beverage's crucial aromatic and structural components. The separated ethanol is then isolated, and the original, flavor-rich base is gently recombined. The process is notable for its precision and efficiency, using minimal energy and creating little waste.

This technological leap allows producers to precisely reduce or remove alcohol without compromising the sensory identity—the structure, mouthfeel, and aromatic profile—that defines a premium wine or spirit. It moves the category beyond simple dealcoholization into the realm of sophisticated alcohol management.

Innovating to Preserve: A Legacy Brand Future-Proofs Itself

For Branca International, the investment is a modern embodiment of its long-standing motto, "Novare Serbando"—innovating while preserving tradition. Rather than seeing the rise of mindful drinking as a threat, the 179-year-old company views it as an opportunity to lead the sector's evolution.

"Our role is to closely observe how the sector evolves and to invest in solutions that can support its development over time," said Niccolò Branca, President of Branca International, in a statement. He emphasized that this move is about expanding the drinking culture, not replacing it. "The future of the sector will not be defined by a choice between alcoholic and non-alcoholic products, but by a broader spectrum of options within the same drinking culture. ALTR represents a compelling technology because it expands the possibilities available to both producers and consumers, without calling into question the value, quality, or identity of the products themselves."

This strategic play allows the legacy brand to participate in a rapidly growing market segment without diluting its core identity. It's a forward-thinking move to ensure relevance for the next generation of consumers, whose preferences are increasingly diverse.

Tapping into a Multi-Billion Dollar Thirst

The Branca-ALTR partnership is landing in a market ripe for disruption. The global low- and no-alcohol (LoNo) beverage market, valued at over $25 billion in 2024, is projected to surge to nearly $47 billion by 2034, according to recent market analysis. The no-alcohol segment is leading this charge, with a predicted 7% compound annual growth rate through 2028.

This explosive growth is fueled by a confluence of powerful social and cultural trends. A rising tide of health and wellness consciousness, particularly among Millennials and Gen Z, has given rise to the "sober curious" movement. These consumers are not necessarily abstaining from alcohol entirely but are seeking to moderate their intake, demanding sophisticated, high-quality alternatives for social occasions. For this demographic, taste is the single most important factor, and they have historically been let down by lackluster offerings. The partnership aims directly at this quality gap, promising premium experiences without compromise.

Navigating a Competitive and Regulated Landscape

Branca and ALTR are entering a dynamic but complex arena. The dealcoholization technology space is heating up, with several companies like BevZero (with its GoLo technology) and Solos Technology vying to offer the best solution for preserving flavor. This competition highlights the massive commercial potential recognized by industry players.

Simultaneously, the regulatory environment is struggling to keep pace with innovation. Both the European Union and the United States' Alcohol and Tobacco Tax and Trade Bureau (TTB) are in the process of clarifying labeling standards for terms like "alcohol free," "non-alcoholic," and "low-alcohol." Just this month, the TTB released new guidance clarifying that beverages under 0.5% ABV are largely regulated as food products, while the EU is debating proposals for what can be labeled "low-alcohol wine." The precision offered by ALTR's technology, which can dial in alcohol content to a specific percentage, will be a critical asset for producers navigating this patchwork of rules, but it also raises the stakes for creating clear and transparent consumer-facing labels.

By combining Branca's global reach and industrial heritage with ALTR's technological prowess, the partnership is poised to set a new benchmark for quality and innovation. "Branca's Novare Serbando philosophy captures exactly what we believe in: honoring heritage while innovating for modern life," stated Richard Schatzberger, CEO and Founder of ALTR. "Together, we are creating exceptional beverages that preserve craft, elevate quality, and give people true choice in how alcohol fits into their social experiences."