The Gin Report by Caroline Childerley

from Drinks Trade | Sep/Oct 2019

We celebrate the life of iconic Sydney publican of the Hollywood Hotel, Doris Goddard-Bishop

From Sipsmith to Four Pillars Gin is still the tonic

THE GIN BOOM – OR ‘GINAISSANCE’ – HAS BEEN GIVEN MANY COLUMN INCHES IN THE DECADE SINCE SIPSMITH LAUNCHED. FAIRFAX HALL, SAM GALSWORTHY AND JARED BROWN WERE PIONEERS WHEN THEY OPENED LONDON’S FIRST DISTILLERY IN 200 YEARS AND MANY AGREE THEIR ARRIVAL ON THE SPIRIT SCENE WAS INSTRUMENTAL IN THE REVIVAL OF GIN’S FORTUNES.

Words Caroline Childerley - The Gin Queen

Sean Baxter at Never Never Distillery with Triple Juniper Gin

Ten years on and the category shows no signs of slowing down. Recent statistics from the International Wine and Spirits shows global consumption of gin rose 8% from 2017-2018. In Australia, gin is second only to ‘Contemporary Beer’ in actual dollar growth, growing from 22% in 2017-2018 to 33% this year, with 1.4m units sold across retail liquor.

PREMIUMISATION Around the world consumers are sipping on their gin and tonics and negroni at unprecedented levels. Overall growth is being driven by ‘premium’ gin – those priced at $67 and above. Consumers have increased knowledge of the category and are interested in what’s new.

Marcus Motteram owner of the the award-winning gin bar Hains & Co. in Adelaide, says he sees the same trend.“Consumers have certainly become more knowledgeable. We’re seeing them brand-calling the gin they want in their gin and tonic. Most don’t blink an eye at a gin and tonic with premium paired tonic and garnish being $16.”

Customers at Scott Fitzsimmons’ Sydney store, The Oak Barrel, also want a topend gin experience. “Overall we’re still seeing growth in the premium end. People are still fascinated to learn and spending closer to the three-figure mark is becoming acceptable, so long as the flavour and narrative are worthy.” LOCAL BRANDS MAKING THEIR MARK

Four Pillars

Five years on from their humble beginnings in a small space at the back of Rob Dolan’s warehouse, Four Pillars is the number one local gin brand. Sure-footed from the beginning, they invested heavily, opting for the world’s best still-maker when choosing their premium Carl still, and by employing Samuel Ng, former bar manager at top bar Black Pearl, as their first Brand Ambassador, they achieved what many local brands struggle with - a strong showing on back bars, without losing their consumer focus.

Never Never Distilling Co.

Never Never Distilling Co. burst onto the Australian gin scene in 2017 with their Triple Juniper gin. It was ranked in Drinks International’s prestigious Top 10 trending gin brands list in 2018, alongside Tanqueray, Hendrick’s, Bombay Sapphire and Sipsmith – the only Australian gin brand ever to do so.

What makes Never Never’s rise to the top so interesting is that their gin is juniper-forward, eschewing the trend for ‘contemporary’, native lead gins available in Australia. In 2018 they decided to launch ‘Juniper Freak’ at their Junipalooza debut. Brand Director, Sean Baxter said, “I worried that we had maybe misjudged our audience with that one. It’s a beast of a gin, brimming with oily, resinous, juniper character and we weren’t sure that consumers were ready for that kind of intensity.”

They were wrong. “We sold out in two days. It’s now a seasonal mainstay of our range, released as a celebration of the yearly juniper harvest.”

Off the back of this accolade and several gold medals in the major spirits competitions, Never Never received a $200,000 grant from local government in order to expand their distillery to increase production and house a cellar door. They have handed distribution to Proof & Company and are now available in

Overall growth is being driven by ‘premium’ gin – those priced at $67 and above. Consumers have increased knowledge of the category and are interested in what’s new.

Australia, New Zealand, Hong Kong, and Singapore, with a firm eye on Japan and the UK.

Manly Spirits Company

Manly Spirits husband and wife team Vanessa and David opened up their distillery a stone’s throw from the beach they love, setting out to create a gin that reflected essence of the area.

They quickly recruited Tim Stones, former Brand Ambassador at Beefeater Gin with experience working alongside distilling legend Desmond Payne, to the role of Head Distiller.

Foraging expert and local chef, Elijah Holland, came on board to help with research into local botanicals, and settled on sea lettuce as one of their hero botanicals. That connection to Australian beach life with images of deep blue sea, aqua skies and ripped surfers has set them apart, and they have recently launched in the UK via the Craft Gin Club, a subscription service that boasts 600,000 members.

TRENDS

Pink Gin

I recently asked Mikey Enright owner of Sydney gin bar, The Barbershop, whether he thought we had reached peak gin. It seems not. “I thought the UK was almost at capacity,” he says, “but then Pink Gin was born, so the boom continues.”

Pink gin is appealing to Millennials and non-gin drinkers. It’s had a huge impact on brands, driving 50% of gin growth in the UK in the past 12 months. In Australia, Gordon’s Pink gin added $10 million to their sales.

This trend shows no sign of slowing. We are now seeing further twists on the category with the introduction of products like Squealing Pig Rosé gin, a gin that gets its pink hue from rosé wine. In February, Echo Falls released a rosé wine and gin infusion targeting wine lovers and those new to gin. Expect to see more of these crossover products coming to market.

Pre-mix

RTDs are another area reaping the reward of the gin craze. The convenience and availability of well-known brands in this format has engaged consumers heavily. In Australia, gin-based premixes accounted for 26% of all category dollar growth in the past 12 months (of just a 2% dollar share).

Premixes can be a difficult balancing act, often losing ABV (and the gin flavour) in the process. Done right, however, they are the perfect way to enjoy your G&T on the go.

Tanqueray have already entered the

fray with their 5.9% ready to drink gin and tonic, with Bombay Sapphire expected to follow in September.

Meanwhile, Fever-Tree has created its own range of premixed gin and tonics: Premium Indian Gin & Tonic, Refreshingly Light Gin & Tonic, and Elderflower Gin & Tonic (all available in 275ml). They worked with renowned distiller, Charles Maxwell of Thames Distillers, who created different gins to match each tonic.

The UK has seen a large number of distilleries produce canned gin and tonics, including Sipsmith, Portobello Road gin, and Manchester gin.

ENGAGING WITH CONSUMERS: GIN AS TOURISM Consumers have traditionally sought out vineyards and foodie trails as part of their leisure or holiday activities. Now gin distilleries are becoming a large part of the tourism business.

Scotland has long been home to two of the world’s gin heavyweights – Tanqueray and Hendrick’s – but the new gin wave is positioning it as a serious gin tourism destination. It now boasts over 70 gin distilleries, and in 2016 the Wine and Spirit Trade Association launched the ‘Scotland Gin Trail’ to reflect the rise in Scottish Craft Gin.

Elsewhere in the UK, Cotswold Distillery, which launched in 2014, attracts 300,000 visitors per year. This year CEO Daniel Szor raised £2 million through crowdfunding to expand the site to accommodate more visitors.

Bombay Sapphire’s Laverstoke Mill Distillery opened to huge fanfare in 2014 and within two years was awarded a Gold medal in the Small Visitor Attraction of the Year category at the prestigious Visit England Awards for Excellence.

Locally, Four Pillars gin achieved 90,000 visitors this year and is now the No. 1 tourist attraction in the Yarra Valley – ahead of Healesville Wildlife Sanctuary!

REGIONALITY – IS THERE TERROIR IN GIN? How do you make your gin stand out when there is a bewildering array of bottles on the shelf for you to compete with?

Distillers are adept at experimenting with different botanicals to create a unique flavour profile, but more and more are

Distillers are adept at experimenting with different botanicals to create a unique flavour profile, but more and more are seeking out local ingredients to assert a point of difference.

seeking out local ingredients to assert a point of difference.

By using local (and often hyper-local) ingredients, gin distillers are producing gins with a real connection to where they are.

Nowhere is this more evident than in Australia where, according to Professor Tim Enwisle, Director of the Royal Botanical Gardens, at least 20,000 of Australia’s total plant species don’t grow anywhere else in the world.

To bring them to the world stage, Australian’s number one local gin, Four Pillars, uses Tasmanian Pepper berry, local oranges and lemon myrtle in its recipe. Now in 25 markets and experiencing a 70% growth in sales, Four Pillars are the flagbearers for the unique flavours Australian flora can provide. NEW MARKETS Cementing its reputation as the birthplace of gin and the starting point of the boom, England has recorded the highest number of distillery openings in the world since Sipsmith launched in 2009. However, other countries not normally associated with gin are now turning their attention to the category.

Japan

Although Diageo’s Japanese-inspired Jinzu gin has been around since 2014, it’s only in the past few years that Japan itself has emerged as a serious gin-producing nation.

Several prominent whisky distilleries, including Nikka (Coffey Gin) and Suntory (Roku gin) have followed the trend and released gins, with more set to follow their lead.

The real standout from Japan is Internationally-acclaimed Ki No Bi gin from Kyoto Distillery. It’s the first gin to be distilled there and uses rice spirit as the base in a nod to the country’s heritage of sake production.

India

India is better recognized as a whisky and rum loving nation, and their gin sales reflect that, recording only around 1% of total spirit consumption in India. This seems incredible when you consider that India is the birthplace of the gin and tonic!

However, several local gins brands have now emerged, utilizing the citrus and spices that India is known for to great effect.

Nao Spirits have created Great Than gin, the first London Dry to be produced in India, and Hapusā Himalaya gin. Third

Wherever You Are

Available Now

Eye Distillery in Goa produces Stranger and Sons Indian gin that launched into the UK in June.

Jaisalmer Indian Craft Gin, produced by master distiller Anup Barik at the Rampur Distillery, in the foothills of the Himalayas, is currently only available in export markets.

JUST THE TONIC! One of the obvious results of the gin boom is the impact on the world of tonics and mixers.

According to Gin Foundry’s recent survey 59% of consumer rate a G&T as their favourite gin cocktail, and capitalising on this, and the increase in the variety of gins – flavoured and contemporary, we have seen new tonic brands emerge, all vying to create the perfect pairing.

However, Fever-Tree continues to dominate, recording a 40% revenue growth to £237.4m in 2018, boosted by the UK market. In response to demand they have broadened their range to include Elderflower, Lemon and Aromatic (pink again!) tonics.

General Manager Fever-Tree Australia, Andy Gaunt says “Less bitter, natural, softer flavours, which are designed to complement today’s new gin styles are key to recruiting new drinkers into the gin and tonic category”.

To that end, Fever-Tree are holding a G&T Festival in Sydney in September aiming to give people an opportunity to learn more and discover new gins, new G&T pairings and different ways of enjoying the humble G&T. MOVING FORWARD WE NEED TAXATION REFORM For Australian gin distilling to even come close the thriving industry England enjoys, there must be support for this growing industry from federal government.

Australia has the highest taxes on alcohol in the world and this threatens to stifle the innovation coming from our gin distillers. Ridiculously, it’s cheaper to buy a bottle of Four Pillars in the US than it is from an Australian retailer.

The Australian Distiller’s Association has worked hard to raise this issue and has successfully achieved rebates for distillers in 2017 and 2018. However, these rebates are tiny in comparison to other alcohol sectors, most notably wine.