In 2019, Katie and Scott Mitic were both approaching a milestone birthday and decided to moderate their drinking. When they looked for nonalcoholic beverages that they could imbibe during their favorite rituals like cooking dinner together, they found the alternatives disappointing at best.

"We wanted a complex, sophisticated beverage that played well with food and tickled our senses. We just couldn't find that wine replacement, so we decided to create one," said Katie Mitic. Not long after, the Mitics met with Scott Baird, founder of iconic San Francisco bar Trick Dog, who touted verjus' merits and explained how its acidic 'bite' is a bartender's best friend when crafting nonalcoholic drinks (verjus is the juice of unripened wine grapes).

As pioneers in the tech industry (with stints at Yahoo!, HP, Facebook, Sitch and TrustedID), the Mitics were accustomed to creating problem-solving products, so they got to work on building an elevated beverage that would appeal to anyone looking to reduce or remove their alcohol consumption. The couple was excited about the challenge, tackling a category (food and drink) that they knew nothing about.

"We were at a point in our career where everything felt a little too familiar," Katie Mitic said. "We love being on a new learning curve with this."

Today, Kally is carving out a new lane in the nonalcoholic "wine" category, mainly because it's made from one of ancient Rome's favorite elixirs and isn't de-alcoholized through reverse osmosis like many of the zero-proof "wines" on the market today and isn't fermented.

Instead, the Portola Valley-based brand is made from the juice of unripened grapes. Though this direction wasn't clear when Katie and Scott Mitic first approached creating a wine alternative, it's now one of the primary points that sets them apart from other brands in the category.

At first glance, Kally looks like many popular small-producer, low-alcohol and minimal-intervention wines on the market. With a colorful, abstract label, Kally could easily sit beside these brands, yet you won't find it next to them. Instead, you'll find it residing with other alcohol-free alternatives.

With a modern aesthetic (heavy glass bottle, thoughtful messaging and beautiful label), Kally's goal is to attract anyone who enjoys a "wine-like" experience, regardless of one's relationship with alcohol.

Katie Mitic addressed the "Can you appeal to everyone" question and said, "The interesting thing about the nonalcoholic market is that approximately 85% to 95% of the consumers buying nonalcoholic products also buy alcoholic products, according to research. This is a market of moderation and our target customer is the moderating drinker. These are people who are changing their relationship with alcohol and choosing to drink less. It's happening across all age groups and is fundamentally a wellness movement."

She loves the fact that their alcohol consumption is down by around 80% and admittedly realizes that there are easier ways to reduce one's alcohol intake than creating a nonalcoholic product. And, as longtime wine drinkers, they knew that to create a suitable substitute, they had to understand winemaking fundamentals.

Because Kally starts with grapes, they monitor sugar and pH levels like any other winemaker and harvest about a month before winemakers for more acid. Depending on the product, Kally uses either chardonnay or cabernet sauvignon grapes grown in the Sonoma AVA (American Viticultural Area).

Once the grapes are pressed, they take the verjus and add botanicals, fruit juice, tea and other extracts to create a beverage that has an aroma, mouthfeel and texture similar to wine.

Experimentation for new products takes place in the couple's Portola Valley home kitchen. "We love to explore the canvas of flavor, and wine lovers comment that they love the mouthfeel that Kally brings. We're harvesting our grapes when they have wine characteristics that we can expand on," said Katie Mitic.

To keep up with demand, the Mitics can freeze freshly pressed verjus and use it throughout the year. "Because of its acidity, verjus freezes incredibly well, so unlike winemakers that have to deal with allocations, we're able to produce Kally year-round. It's what we technologists like to do. Launch a product, see how customers react and then adjust, which keeps us close to them and the market," she said.

Seasonality plays a big part in Kally's journey. Currently, the Mitics are playing with fruits with acidity and minerality for their spring 2024 release. "We're macerating lemon verbena and shiso in verjus, which will add great complexity to some of the products we're working on," Katie Mitic said.

The brand is in a growth phase, and she hopes to engage with more local retailers and restaurants in the coming months. Besides being available for purchase on their website and through GoodEggs, the Mitics self-distribute to some of their favorite Peninsula spots like Roberts Market and Bianchini's Market in Portola Valley, Woodside's Village Pub and Menlo Park's Flea Street.

"We love getting to know our customers and building relationships," Katie Mitic said. "We love engaging with our digital customers, but we also want you to be able to find Kally in your local market."

Website: drinkkally.com, Instagram: @drinkkally.