Diageo is launching an alcohol-free version of its mainstream rum brand Captain Morgan.

Captain Morgan Spiced Gold 0.0% Alcohol Free Spirit will initially go on sale in the UK next month.

Diageo will launch the product in Estonia, Lithuania and Latvia later this year with a “further roll out across Europe” next year, it said. The next wave of markets is set to include Germany, the Netherlands and Switzerland.

In the UK, retailers including Tesco, Sainsbury’s and Morrisons will stock the new product. It will have an RRP of £15 ($18.99).

During the year to 30 June, Captain Morgan’s net sales in Europe rose 10%, or by 9% on an organic basis. Organic volumes were flat year on year. Globally, net sales were up 11%, or by 5% organically. Volumes fell 2% on an organic basis.

Diageo’s stable of alcohol-free alternatives to its brands includes two gin options – Tanqueray 0.0% and Gordon’s 0.0% – as well as the non-alcoholic stout, Guinness 0.0.

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The spirits giant has sought to increase its presence in the market for alcohol-free spirits through M&A. In 2019, the company bought a majority stake in non-alcoholic spirits brand Seedlip.

Diageo has also invested in fledgling alcohol-free brands, including Ritual Zero Proof, through the incubator it backs, Distill Ventures.

According to GlobalData, Just Drinks’ parent, the global market for non-alcoholic spirits global market was valued at $138m in 2022. The market is forecast to grow at a CAGR of 5% for the next five years.

Last month, Diageo laid out its plans to expand the production capacity Guinness 0.0 with a $27m investment at its St. James’s Gate facility in Dublin.

The company said the project would increase its production capacity for Guinness 0.0 by 300%. The investment is being used to build a two-story building at the site that will include six processing vessels with a total capacity of 500,000 hectolitres.