A new beverage for a new generation

Dry January has become a familiar ritual for many Americans, but for a growing number of young adults, drinking less alcohol is a long-term shift and not a one-month reset.

Generation Z is consuming alcohol at significantly lower rates than previous generations, a change driven by health concerns, mental well-being and a desire to stay present. For Josephine Miller and Della Daml, that shift became the foundation for Charm, a new non-alcoholic social tonic they are launching across the Twin Cities in the coming months.

Charm is designed as an approachable alternative to alcohol “for the nights you’ll want to remember,” according to their website.

“Charm is a non-alcoholic, sparkling seltzer that is made with adaptogens, which are herbal supplements that help to reduce stress and boost mood,” says Miller, a senior majoring in entrepreneurial management with minors in biology and neuroscience.

The founders didn’t arrive at the idea by accident. As college students, they noticed a disconnect between how people their age socialize and what’s available to drink. 

“We loved going out with our friends, but we didn’t always want to drink,” says Daml, who graduated from the Carlson School of Management in December 2024 with degrees in marketing and entrepreneurial management. “The options just weren’t great. Mocktails were sugary and expensive, and sparkling water felt boring. We felt like there was a real gap in the market.”

That gap, they believe, reflects a larger cultural shift. Among Generation Z, drinking less, or not at all, has become increasingly common. Miller and Daml say people still want to feel included in social activities without alcohol being the centerpiece.

“[Charm] really just fits in at social environments,” Miller says. “This is a great alternative to alcohol if you want to still be involved in a social atmosphere while also prioritizing your well-being.”

Charm’s first beverage is a lemon-ginger tonic packed with an adaptogen blend of schisandra, lion’s mane, L-theanine, and lemon balm, designed to ease anxiety, reduce stress, improve mood, and boost energy and focus, among other benefits.

Rather than rushing into national distribution, the founders are taking a deliberate, community-first approach. Over the coming months, Charm will roll out in a mix of Twin Cities liquor stores, cafes, restaurants, breweries and event spaces, alongside online sales, to see where consumers might gravitate toward the beverage since it does not fit neatly into one category.

Beginning in the classroom

The idea for Charm took shape in Minnesota Carlson’s Entrepreneurship in Action course, run through the Gary S. Holmes Center for Entrepreneurship. This one-plus-semester course guides students through launching a startup company. Students develop, evaluate and test potential business opportunities, select the businesses they will operate, determine the resources required and develop a plan to launch their business. Throughout the course, students gain hands-on experience with all aspects of the business and are encouraged to take risks, learn from their mistakes and continue to improve and refine their businesses. 

The class has helped launch more than 70 startups.

“The Entrepreneurship in Action course really emphasizes starting with a problem, not a solution,” Daml says. “That completely shaped how we approached this.”

For Miller, the problem was also personal after she became interested in health and wellness after overcoming her own health challenges. 

Her experience working alongside naturopathic doctors helped ground Charm’s use of adaptogens, which are commonly used in integrative medicine to support mood, stress regulation and energy. Daml came to the business from a different path. Internships through Minnesota Carlson pulled her toward startups where she could work across every part of a company. 

Faculty support helped turn their shared insight into a tangible product. A professor connected them with a Twin Cities-based kombucha producer, founded by another Minnesota Carlson alumni, who helped them navigate commercial formulation. 

That same ecosystem carried Charm into MN Cup, the state’s largest startup competition. Encouraged by their professors, the founders entered without expectations. 

“We honestly didn’t even know if we were going to keep going with the business after graduation,” Daml says.

MN Cup forced them to clarify their vision, sharpen their financials and articulate why Gen Z needs a product like Charm. At the competition, Charm won the Student Division and took home the crowd favorite award. 

“That was such a full-circle moment,” Miller says. “A year before, we had gone to MN Cup, just walking around. A year later, we were on stage, presenting and eventually winning. It was surreal.”

The prize money is now funding Charm’s first production run as it prepares to hit shelves later this winter. Even as the company grows beyond campus, both founders are finding ways to give back to the University of Minnesota by participating in the Carlson Ventures Enterprise, hiring student interns and speaking to classes. 

“The support [from the University] didn’t stop when the class ended,” Miller says. “We still email our professors for advice, so it’s only right that we give back in that same way.”

As Dry January comes to an end and Gen Z continues to redefine social drinking, Charm is stepping into the space between participation and restraint. 

“It’s wild to think this started as a class project,” Daml says. “Minnesota Carlson didn’t just teach us entrepreneurship. They gave us the tools and confidence to actually do it.”