Big Drop, the UK alcohol-free beer business, has changed brewer in its domestic market and is working on a new licensing deal in the US.

North Yorkshire-based Black Sheep Brewery is producing for Big Drop’s customers in the UK and continental Europe.

UK beer group In Good Company had been Big Drop’s brewer but Rob Fink, Big Drop’s CEO and co-founder, said the businesses had “mutually agreed to trigger a break clause in the contract”.

Across the Atlantic, Big Drop’s production deal with Illinois-based contract brewer Destihl has expired. Fink said his company is nearing an agreement with a new partner.

“We expect to have heads of terms by the end of the year,” he said. “[It] would give us 50 state coverage and access to an owned domestic brewery, so could be very interesting.”

Black Sheep Brewery’s deal to handle brewing for Big Drop in the UK and continental Europe is the first licence secured by its owner Keystone Brewing Group. The business, which bought Black Sheep Brewery in May last year, was formed in February to house a series of acquisitions made by investor Breal Group. Keystone Brewing Group's portfolio also includes UK firms Brick Brewery, Brew By Numbers and Purity Brewing Co.

Speaking to Just Drinks in February, Mark Williams, Keystone Brewing Group’s CEO, indicated the company was looking to enter the alcohol-free category.

In a statement yesterday (4 December) to announce the Big Drop deal, Williams said: “Big Drop is a well-established, pure-play, alcohol-free brand and the perfect fit for our portfolio, particularly with the alcohol-free beer category expected to continue growing. We know its rate of sale is one of the best in the category and by bringing Big Drop’s exceptional range under our umbrella, we aim to maximise its potential, reaching more consumers across the UK.”

Big Drop’s UK customers include Morrisons, Waitrose, Amazon and Dry Drinker. The company had listings in Sainsbury’s and Fink said the business is intending to pitch to the chain next year.

Earlier this year, Big Drop embarked on a crowdfunding push via Seedrs but it was put on hold while production was moved.

At the time, the company had been predicting volume sales worth £3m ($3.8m) in 2024 but Fink, pointing to confidentiality clauses in the deal with Keystone Brewing Group, declined to comment on current forecasts.

Meanwhile, Big Drop has started contract brewing in Singapore and is set to begin production under licence in Australia next month.