Wine Giant Buys Phony Negroni in Landmark Non-Alc Deal

RIPON, CA – April 29, 2026 – In a move that sends a powerful signal across the global beverage industry, The Wine Group (TWG) announced today it has acquired the popular Phony Negroni® non-alcoholic cocktail line from Brooklyn-based innovator St. Agrestis. The financial terms of the deal were not disclosed.

The acquisition places one of the world's largest wine producers in control of the top-selling non-alcoholic bottled Negroni, a move that underscores the mainstreaming of the "sober curious" movement and the strategic imperative for traditional alcohol companies to diversify into the booming non-alcoholic sector. For The Wine Group, whose portfolio includes household names like Cupcake, Franzia, and Meiomi, the deal is a significant bet on a future where consumer choice reigns supreme, whether the glass contains alcohol or not.

The Non-Alcoholic Tipping Point

This acquisition is not happening in a vacuum. It arrives as the non-alcoholic beverage market transforms from a niche category into a global economic force. The market, valued at over $1.4 trillion in 2023, is projected to surge past $2 trillion by 2030. This explosive growth is fueled by a profound cultural shift, particularly among Millennials and Gen Z, who are drinking less alcohol than previous generations and actively seeking sophisticated alternatives.

The trend, often dubbed "mindful drinking" or the "sober curious" movement, is driven by a heightened focus on health and wellness. Consumers are no longer satisfied with sugary sodas or juice as a substitute for alcohol. They demand complex, adult flavors and the ritual of a well-crafted cocktail, without the alcohol. Phony Negroni, and brands like it, have successfully met this demand, creating a new premium category.

“At TWG, we remain focused on investing in the future through strategic business transactions and in-house innovation because today’s consumers continue to redefine how, where, and why they enjoy beverages,” said John Sutton, CEO at TWG, in a statement. “St. Agrestis successfully targeted the non-alcohol trend with their popular Phony Negroni non-alc cocktails.”

The Brooklyn Brand That Redefined 'Phony'

Launched just over four years ago in January 2022, Phony Negroni quickly became a category-defining brand. Born in the St. Agrestis distillery in Greenpoint, Brooklyn, the product was the result of a three-year quest by its founders—Steven DeAngelo, Louie Catizone, and Matt Catizone—to create a non-alcoholic Negroni that was anything but a pale imitation.

Their success was rooted in an obsessive commitment to authenticity. Using a complex blend of 30 non-GMO organic botanicals, citrus, and a touch of carbonation to mimic the "bite" of alcohol, they crafted a ready-to-serve beverage that captured the classic Negroni’s signature bitterness and aromatic complexity. The market responded with fervor. The brand sold over a million bottles in 2023 and is already available in over 4,000 bars, restaurants, and retailers across the United States. Its success earned it the title of the #1 non-alcoholic 200mL bottled ready-to-serve cocktail.

“As a small but dynamic team, we defied the odds by establishing Phony Negroni as a clear leader in the growing adult non-alcoholic beverage category,” said Steven DeAngelo, Principal and Founder of St. Agrestis. “We are very excited to see The Wine Group's long-term vision for the brand come to fruition and feel that their impressive track record of growing large, world-class brands will catapult the Phony Negroni to new heights in its next chapter."

The portfolio acquired by TWG includes the original Phony Negroni as well as innovative line extensions like Phony Mezcal Negroni, Phony Espresso Negroni, and Amaro Falso, showcasing the brand's creative depth.

A Strategic Pour for The Wine Group

For The Wine Group, this acquisition is a masterclass in strategic portfolio expansion. It provides an immediate and powerful entry into one of the fastest-growing segments of the beverage industry, hedging against potential long-term declines in traditional alcohol consumption. This isn't TWG's first step into the non-alcoholic space—the company previously launched a non-alcoholic wine under its Cupcake Vineyards brand—but the Phony Negroni deal represents its most significant investment to date.

The synergy is clear: Phony Negroni brings craft credibility, a loyal following, and a proven, high-quality product. The Wine Group brings scale. With its vast distribution network, deep relationships with national retailers, and massive marketing muscle, TWG is poised to take Phony Negroni from a darling of the craft scene to a household name.

“Phony Negroni has strong appeal among younger adult consumers, positioned at the intersection of craft and convenience,” noted Helen Kurtz, TWG’s Chief Marketing Officer. “We’re excited to scale the brand to reach more consumers while preserving what makes it special.”

The Challenge of Scaling Craft

The road ahead, however, presents a classic challenge for the modern consumer goods landscape: can a craft brand's soul survive a corporate acquisition? The history of the food and beverage industry is filled with examples of beloved small brands that lost their authenticity—and their core customers—after being absorbed by a giant.

Maintaining the quality and intricate flavor profile of Phony Negroni during a massive production scale-up will be the first major test. The brand's success was built on a complex recipe and a refusal to compromise on ingredients. TWG will need to resist the temptation to simplify processes or substitute ingredients for the sake of efficiency and cost savings.

Preserving the brand’s edgy, Brooklyn-born identity will be equally crucial. Phony Negroni's appeal is tied to its story of innovation and its connection to a modern, urban, and discerning consumer. Integrating it into a corporate portfolio that includes mass-market brands like Franzia requires a delicate touch.

To help navigate this transition, St. Agrestis’s founders will remain involved with the business for the near term. This move is often seen as a way to ensure a smooth transfer of brand knowledge and production know-how, and to reassure loyal customers that the product they love is in good hands. The path is well-trodden in the non-alcoholic space, with industry pioneers like Seedlip and Ritual Zero Proof also finding homes within larger beverage conglomerates like Diageo. The success of this acquisition will be a key case study for the future of the entire non-alcoholic category, proving whether craft innovation and corporate scale can truly mix.