Sentia Spirits MD talks GABA-powered push to redefine functional alcohol-free drinks

After more than two decades at Anheuser-Busch InBev, where he moved from brewing science to in-house VC and innovation arm ZX Ventures, Jerome Pellaud has joined UK start-up Sentia Spirits.

Sentia sits at what Pellaud foresees as the industry’s “most disruptive beverage transformation” – functional, alcohol-free alternatives designed specifically for social occasions. The company, backed by Professor David Butt’s GABA Labs, is marketing non-alcoholic drinks it says contain GABA‑activating botanicals to deliver a feeling of relaxation and “social ease”.

Pellaud tells Just Drinks why he believes a “true, credible, delicious functional alternative to alcohol” remains largely unsolved, how Sentia is trying to fill that gap and what comes next as the business moves from its DTC niche to, hopefully, a broader on- and off-trade presence.

Dean Best (DB): You say a “true, credible, delicious, functional alternative to alcohol” hasn’t been “properly tackled” yet. Why do you think that is?

Jerome Pellaud (JP): There have been quite a few attempts, mostly from start-ups. The big alcohol companies still monitor [the area] – but they are not necessarily making the decision to jump in. It is not yet absolutely necessary in their mind. From a consumer point of view, it is more urgent. They are asking for alternatives and functional alternatives.

The start-ups face the challenge of the science. Anybody can mix some botanicals and nootropics but that does not mean you recreate that sensation of the first glass of alcohol. Very few people fully understand the role of the GABA receptors – gamma-aminobutyric acid – which is the main neurotransmitter in the brain responsible for social ease and relaxation. It is your ‘chill switch’.

From a consumer point of view, it is more urgent. They are asking for alternatives and functional alternatives

It became clear in the 1980s that the first effect of alcohol on the brain is a non-specific interaction with GABA receptors, which creates this ease, this ‘take the edge off’ feeling, before you get drunk. Unfortunately, alcohol also triggers a lot of other signals in the brain that are much less desirable, such as dopamine leading to addiction.

Who understands that the most is Professor David Nutt, with all his research. Small companies lack that level of research. More often you see people recreating the ‘buzz’ of alcohol with ginger, spices for warmth, or some caffeine and vitamins to have a bit of a kick, plus sugar. You get a bit of a kick but that’s not your GABA system; it is just more energy.

People with R&D labs in the beverage world have not tackled it and the small players who see the opportunity do not have the R&D labs. With GABA Labs and Sentia, we are at this crossroads where we have access to both.

DB: What evidence do you have this business can take off?

JP: We have clear demand for it, including sometimes, unfortunately, being out of stock. Last year, we launched two functional non-alcoholic beers – a stout and a pale ale – to complement the GABA spirit. It was simply to see whether there was also demand for something more in the beer direction and we sold out quite rapidly. That is a good problem to have but still a problem.

Another data point is we have hundreds and hundreds of subscribers in the UK alone. We also have subscribers in the US. We also run surveys. Because we are mostly direct-to-consumer, we have easier access to people. In our latest survey in April–May this year, more than 83% of consumers told us the perceived effect [of the drinks] was meeting or exceeding expectations and more than 50% said it was exceeding.

Meeting expectations with a product like Sentia is already quite a high bar because people come in sceptical. It is not 100% – not everybody feels it the same way after one glass. Some people might feel nothing and some people might say: ‘That’s already a lot for me.’ We do not expect 100% of people to feel it. But it is very encouraging to see the number of monthly subscribers and the percentage of people telling us they feel something – or it is even exceeding what they expected.

DB: How similar is the experience to alcohol?

JP: We are clear it is not the same as alcohol. We act on the GABA receptors, like some of the effect of alcohol on GABA receptors in the first one or two glasses – that creates this social ease.

But because alcohol also stimulates endorphin and dopamine, that creates some other sensations even from the first two glasses – and we do not have that. It is not one-to-one but the social ease is very similar.

DB: Your market presence at the moment is predominantly DTC.

JP: We are still majority DTC. We sell a very nice amount on Amazon and we still sell more on our own web store but Amazon is gaining traction.

We sell in the UK, which is our main market. We also sell in the US, with very good traction on Amazon and our web store. Then we sell on our website only for Europe as well.

We see some traction in Germany and Spain and a little bit in the Netherlands. That is quite logical because Spain and Germany are the most mature markets in terms of non-alcoholic versions of alcoholic beverages.

My plan for growth is definitely to move offline as well. We want to keep growing DTC but expand. We have started in the on-trade. We are also looking to recruit people with a background in beverage sales and ultimately go into retailers.

Off-premise has never really been the focus. A brand like Sentia needs to be able to explain and tell the story, so the on-trade is the appropriate channel but we are in Selfridges, for instance.

DB: When are you looking to move into the off-premise in a significant way?

JP: We are targeting next year. The focus is really the UK. We need to win in our backyard before we look at extra activity.

I have meetings lined up now, with discussions happening between October and the end of November or December for range reviews for spring 2027. Ultimately the goal is to land a national retailer next year.

We are also bringing RTDs to market for Sober October for the first time. Sentia is classified as a food supplement because some botanicals are fully approved as food supplements but not yet approved as food. For the RTDs, we took the approach they had to be food, not food supplements.

We dug into GABA Labs’ science and the learnings we have from the botanicals in the Sentia GABA spirits to design a unique blend for the RTDs, so they are classified as food. We think it is a good way for people to get to know Sentia without necessarily buying a full bottle with 20 servings.

DB: Have you got any listings for the RTDs? It is such a crowded market.

JP: I do not expect it to be easy. We truly believe we have a unique point of differentiation because it is powered by GABA Labs. The discussions with retailers are happening as we speak. I cannot tell you we have landed a listing yet but I am hopeful the discussions will be fruitful.

DB: Are you looking at attracting funding?

JP: Yes, absolutely. There have been a few rounds – mostly before I joined – from angel investors. David Orren and Professor David Nutt, the two co-founders, are looking to raise another round in the coming weeks.

Pending the research progress at GABA Labs and listings of the RTDs in retailers, we will also be looking at a larger fundraising at some point in spring next year.

I do not know the total raised so far off the top of my head but it is several millions for sure. In this near-term round, they are looking to raise more than £1m ($1.3m). I’m looking after the beverage side of the business. This money is not all for Sentia; it is also for the R&D.

DB: How much are you looking to raise for the beverage business?

JP: Big brands, when they do a massive launch, spend tens of millions. We are not going to start by doing TV campaigns and huge sponsorships – we are still a start-up. For us, it is going to be much more about connecting with our loyal consumers, expanding that base using user-generated content. You still need more than £1m for that. I would say probably between £1-2m for 12 months of proper activation and brand growth.

DB: Does the GABA Labs part of the business work with other companies, or is it focused on Sentia?

JP: I would say it is specifically focused on [identifying] the right botanicals. Sentia is the vehicle to bring that science to consumers in a way they can feel.

Today it is Sentia only. GABA Labs has the ambition to become a supplier of these proprietary neurobotanicals. Sentia is the pioneer and we have direct access to the latest research but in the future there could be other non-alcoholic beverages powered by GABA Labs.

DB: Who is the typical consumer for your spirits?

JP: It is a fairly broad demographic but if I simplify based on our data from online, the majority are 45+ years old, with a skew towards women – maybe 57–58% women. Slightly more than 55% are 45 and above. We do have consumers and even subscribers who are 30 but for now it is mainly what I would call ‘wellness optimisers’.

These are people at a stage where they have a lot going on – kids, work – and they say they are not 20 anymore. They are looking for alternatives. They want to take the edge off but in a healthier way.

We also have younger people who might say: ‘I do not want to drink today but I am happy to drink at the weekend. I do not want to drink tonight because tomorrow I want to be sharp but I still want to socialise.’

That’s probably going to become more the case: slightly younger audiences for performance – wanting social ease but needing to be at their best tomorrow – and slightly older audiences using it more as a ritual, an everyday type of drink replacing alcohol.

DB: The non-alcoholic market is crowded – zero-alcohol beer, alcohol-free spirits, adult soft drinks, adaptogenic and functional beverages. How do you think about your place among all of those products?

JP: From a beverage professional point of view – whether manufacturer or retailer – we have our understanding of categories but we are always surprised by how consumers actually define them.

Twenty years ago, it was not unusual for someone to say ‘I am a beer drinker’ or ‘I am a wine drinker.’ For the young generation today, that is irrelevant. It depends on their mood, who they are with and where they are. They are looking for a repertoire.

You need to do two things right. Branding – the emotional aspect of the brand – is super important. Then there is functionality, which is a spectrum.

Energy drinks have an advantage because if you load them with caffeine, taurine and sugar you feel the kick. But more than 40% of people drinking caffeinated products – energy drinks or coffee – are trying to reduce their intake.

If you need a pick-me-up or that social moment, what do you have? Yes, it is crowded but we have the opportunity to bring brand clarity and emotional connection. You will see with the RTDs the positioning is being sharpened.

Consumers told us: ‘We love it but it took me a while to understand what it was.’ We needed to bring the proposition in a much clearer way, especially for RTDs. People are not going to spend five minutes reading the can.

DB: How have you tweaked the way you talk about the science?

JP: If you look at the brand evolution, we now use ‘social drinking reimagined’. The Sentia logotype is smoother and more connected because we are all about connection.

We still have on the GABA spirits three dots, which signify a ‘third way’: you have alcoholic, non-alcoholic and then this third way. We have connected the dots because, if we are about social connection, it makes sense. These are some of the cues we bring through the packaging.

Communicating the science is still a challenge

We also explain in a very simple sentence alcohol is the most widely used product to stimulate your GABA system for social ease – and Sentia does the same. We are not saying alcohol is the enemy. We are saying: this is what people have used for millennia to activate their GABA, among other things. We provide the same science without the negative effects.

We have realised when people understand that alcohol also stimulates GABA, it is not so important to explain GABA in full detail. Communicating the science is still a challenge. Japan is probably the only country where there is widespread awareness of what GABA is and what it does. Everywhere else is not yet at that level.

DB: We spoke about the target consumer. It may be less about who they are and more about the occasions and why they are looking to drink. What kind of occasions is the brand looking to be the hero of?

JP: For us, it is really about social drinking. Social ease is best when you actually use it to connect with people in the real world.

We have just got some studies back. We are not the first to see this data but pub visits are in decline and not only because people do not want to drink. There are other reasons, of course – phones, streaming, Netflix.

But a significant number of people do not go to the pub because they decide not to drink and are not sure what they will do there. They might worry about social anxiety: ‘If I do not drink and go to the pub, I might be tempted, or I might be embarrassed to connect with others.’

That is where we want to anchor Sentia. There is no reason not to go out and no reason not to feel socially at ease and you now have options even without alcohol. We want to be rooted in that moment – probably after 6pm, all the way through your evening.

We are not trying to go after people who want a huge party and to dance on tables. Sentia brings social ease but it does not make you lose control. We are not targeting nightclubs and big party places – that is not who we are.

DB: What is your sales target for 2027?

JP: That’s not something I can share. It is going to be a slightly different business because we will move from 95% DTC to a full omni-channel model.

I can say the increase in revenue is definitely more than doubling because we are adding channels while we keep growing DTC. It is ambitious but we have a very detailed plan – number of venues, rate of sale per venue per month over the next 12 months – so we think it is achievable.