12 minute read
PREMIUM GIN: SPIRITED SURGE
Spirited surge
As the gin category continues to experience record growth and fierce competition, Molly Nicholas uncovers the contemporary trends driving the gin renaissance.
A true powerhouse in the Australian spirits market, gin has enjoyed tremendous growth as the category continues to evolve and consumer preferences diversify.
With one in three Australian consumers drinking gin every four weeks, and a global growth rate of 11 per cent in value last year, retailers have the chance to tap into a significant pool of drinkers. Nationally, we have seen consumers lean into experimental expressions, sustainability trends and impactful branding, creating a competitive landscape.
“The gin landscape reflects an everadapting blend of heritage and contemporary, capturing the essence of modern consumer desires,” explained Vikki Brown, Chief Distillery Strategist at Rainfall Distillery.
“Crafted with a thirst for authenticity, [consumers] seek out artisanal and locally sourced gins, often valuing sustainability. Embracing both tradition and innovation, consumers explore classic styles and creatively flavoured options.”
As with most spirits categories, consumers aren’t afraid to pay the price for premium products with a compelling narrative. Gin has been no stranger to the trend of premiumisation, with distillers worldwide capitalising on the desire for elevated experiences. Chris O’Shea, Head of Category for Gin Mare, commented on the growing demand for high-end products.
“The Gin category has seen the largest long term share increase of any glass spirit in Australia. As Australian consumer preferences are evolving, consumers are more than ever looking for super premium gins.
“Gin products priced at $80 and above are growing at +10 per cent, significantly ahead of total glass spirits and the total gin category. Gin Mare is the world’s number one ultra premium gin and the world’s first Mediterranean gin, which is in-line with consumer preferences.”
While consumers are elevating their at-home drinking experience with higher quality gins, retailers have the opportunity to immerse them in a more sophisticated shopping experience. The uniqueness of Gin Mare comes from its Mediterranean ingredients, Brand Manager Ashleigh Wheeler explains how dialling up the styling of a display with suitable mixers and garnishes can really tap into this element.
“Make it easier for consumers to make the signature Gin Mare drink at home, by positioning Gin Mare with Mediterranean gin drinking experience. Cameron Syme, Founder and Head Distiller at Great Southern Distilling Company, commented on the growing popularity of soda over the tried and tested tonic.
“To me gin is perfume for your soul, so quality is paramount. We believe that many people are looking for something different to the G&T and cocktails of old.
“We are seeing an increase in consumers exploring soda with their gin. Soda works brilliantly with our gins; we hand select our botanicals and when mixed with soda all the beautiful botanical flavours shine as the distiller intended.
“Help consumers to discover news ways to experience their gin – work with distillers to provide in-store tastings, cocktail ideas, access to Australian mixers and easy garnish ideas. We all know the importance and difference of quality produce.”
An age of exploration
While consumers experiment with their favourite gin serves, the once traditional tipple has embraced the native botanicals and terroir of Australia, celebrating the essence of the nation and resulting in some unique expressions.
Consumers have shown a growing interest in playful flavours, with the IWSR reporting a 54 per cent growth in the category. Cameron Mackenzie, Co-Founder and Head Distiller at Four Pillars, explained how the fusion of tradition and innovation has created a new demand for experimental gins. “High quality flavoured gins are certainly having their day. Unlike some of the synthetic flavours of other spirits, there are some great flavoured tonic, which is a perfect pairing. By adding ice, a sprig of rosemary and twist of an orange, consumers can transfer to the Med at home.”
Creative merchandising can have an impact on consumer purchasing decisions and provides an opportunity for retailers to attract ‘discovery consumers’ who are interested in trying new and different products. Beyond the spirits on your shelves, help your customers to reimagine the classic G&T by offering a diverse selection of mixers, decorative accompaniments, and even glassware.
“As consumers become more choiceful with their spend, gin brands have an opportunity to inspire athome consumption with simple classic twists,” says Erin Kerr, Marketing Manager at Bombay Sapphire. “[Retailers] must work harder than ever to add theatre and delight consumers.”
Embracing the spirit as a versatile base for a wide range of concoctions is an integral part of the modern gins, especially those flavoured with grapes. This is an area Australia can own given the high quality and reputation of our wine industry.
“We launched Bloody Shiraz Gin in 2015 and we have unwittingly created a category, so much so there is now a separate category at the Australian Distilled Spirits Awards.
“Customers are always interested in the latest, trendiest gin on the shelf, and of course will always come back for the classics. If you can supplement the timeless gins, with experimental or limited-edition products, you get the balance between driving hype with the new and maintaining consistency with the old.”
Staking a claim in the field of experimental gins, Hendricks first launched its ongoing series of limited releases, known as the Cabinet of Curiosities, in 2019. Inspired by Master Distiller Lesley Gracie’s fascination with different botanicals and unusual flavours, the range has capitalised on the growing demand for imaginative flavour profiles.
“[Experimental releases] are a super important category driver,” said Yosheen Naidoo, Hendricks Brand Manager. “Gin drinkers tend to explore and often have over seven gins in their repertoire. Having limited releases ensures we are catering to our promiscuous gin drinkers as well as recruiting new drinkers and keeping them in the category.
“Consumers have responded well to our Cabinet of Curiosities limited release range as it offers consumers taste differentiation, meaning each variant appeals to varying consumer tastes. Hendrick’s Lunar Gin has warm baked spice notes, compared to our Hendrick’s Neptunia Gin that offers a more citrus profile with a blend of sea kelp, coastal thyme and lime. We have clear consumer segments that love a particular variant, and it works.”
The art of identity
When it comes to the gin category, it’s not just the liquid within that captivates consumers. Over the years, the extra layer of allure added by artwork and bottle design has become an integral part of the gin experience. Using bottles as vibrant canvases, gin producers are maximising their share of shelf and standing out in a booming category.
“Bottle design is very important to the consumer, given it is the first touchpoint that attracts a shopper at the point of purchase,” said Naidoo. “Based on our market research, it is one of the primary reasons why [Hendricks is] chosen, along with premium taste and refreshment.
“We track our bottle and logo DBA’s annually, and we have seen huge uplifts in brand attribution year on year of both our Hendrick’s bottle and logo in terms of design and uniqueness.
“For a super-premium, well known and profitable gin like Hendrick’s, having a distinct bottle on shelf with strong brand attribution and awareness scores like ours, means that shoppers will have a stronger propensity to purchase. It can offer huge benefits to a retailer, distinctive and differentiated brands within a category stand out on shelf and it is often why we are chosen.”
Gone are the days of mundane bottle designs, explains Natalie Smith, Co-Founder at Taylor & Smith Distilling Co. Bursting into the market with its curved blue bottles, contrasting hand waxed caps and bold typography, the small-batch distillery takes consumers on a visual journey with its mesmerising bottle and high shelf impact.
“Colour is so important to us. We come from creative backgrounds, Ben is a painter with a Masters in Fine Art and I am a cultural geographer/writer,” said Smith. “The appearance of an object shapes how you feel about it, and ultimately, we were looking for something meaningful.
“The colours represent us. There wasn’t much variation back in 2017, we are happy that we followed a path that was original and true to ourselves. Retailers can benefit by including something bold on the shelf. Their shelves look visually more interesting, and every bottle tells a story. Eye-catching bottles lead to happy, satisfied customers.”
Empowering sustainable choices
The modern gin landscape is filled with producers who embrace eco-friendly practices and social responsibility. By curating your gin selection to spotlight brands that align themselves with sustainability practices, liquor retailers can resonate with conscious consumers.
Situated in the Peerabeelup region of Western Australia, Rainfall Distillery commits itself to sustainability through established partnerships with regional farmers and its use of natural rainwater.
“Sustainability is a crucial aspect of the gin category because it aligns with growing consumer demand for ethical and environmentally responsible products,” said Rob Brown, Master Distiller. “By prioritising sustainable practices, gin producers can reduce their carbon footprint, minimise waste and support local communities.
“This resonates with customers who value transparency, ecofriendliness and social responsibility, leading to a greater brand loyalty and a positive impact on both the environment and society.”
Vikki Brown added: “Retailers aren’t just turning over a new leaf, they’re reaping rewards. By embracing sustainable brands, retailers cultivate a distinctive brand identity. They become beacons for conscious commerce, attracting a dedicated following of environmentally aware consumers.
“By strategically curating sustainable products in-store, employing engaging displays, crafting irresistible promotions, engaging customers with educational events and leveraging social media to attract an eco-conscious clientele, liquor retailers can tap into the rising tide of environmentally conscious consumers, building a reputation as both a responsible business and a go-to destination for eco-friendly indulgences.”
As Australia’s first carbon neutral gin distillery, Four Pillars is another of Australia’s leading gin producers well-versed in the need to preserve Australia’s diverse and delicate ecosystems.
“There are the topics of sustainability and the climate crisis, meaning as a brand, innovation plays an integral role in assuring our gin treads carefully on the planet,” explained Mackenzie. “We always strive to be ethical and generous and good citizens of the gin world who others look to with respect. From the very first day we distilled gin we have tried to recycle, re-use and replenish our environment and give back to the community.”
Storytelling with each sip
As sustainability becomes a guiding principle for earth conscious consumers, gin producers have identified an unwavering support for local distilleries and Australian-made gin. The emergence of locally made gin has become a source of pride and distinction for many consumers, representing more than just a product.
Michael Hickinbotham, Founder of Australian Distilling Co., explains how the award-winning spirits producer has engaged consumers around the country with its growing network of localised distilleries.
“Australian gin consumers are becoming more discerning and aware of quality, craftmanship and supporting local. They are looking for authentic brands with engaging stories that they can go on a journey with.
“At the heart of our portfolio are our destination gins, each with a unique flavour profile that is reflective of their namesake place. We have invested a great deal of infrastructure, setting up stills throughout Australia to ensure our gins are crafted at a very local level. Our consumers love this about our portfolio, and not surprisingly, there is always a lot of patriotism towards their cities’ gin.”
While consumers favour products that are closer to home, Australian gin producers are well placed to support retailers with in-store activations that can bring their product to life.
“We see our relationship with our retailers as a true partnership and are very committed to supporting our retail partnerships through a proactive sales strategy and team that are always looking at ways to activate our portfolio at a store level,” added Hickinbotham.
“Retailers should look to work with brands that can provide highly polished and creative point-of-sale material, like shelf talkers, swing tags and posters, in order to inform and engage consumers.
“Staff and consumer tastings continue to be an effective sales tool, with evidence to suggest that sales are substantially stronger off the back of in-store tasting events.”
Beyond events, liquor retailers hold a unique platform for educating consumers about the merits of Australian-made gin. Curating collections of local gins and advocating for the culture and community that they represent, can help to shape the understanding and preferences of consumers.
“If retailers can get to know the stories, they can share them with customers,” explains Smith. “Taylor & Smith are from Tasmania and make a base spirit from Tassie Pink Lady apples, people love to know that. With smaller craft distilleries, many of them produce a whole range of products. That’s an opportunity to display a distillery’s full range of offerings together, and people are captivated by the thread that runs through the range.”
Bringing a sense of locality to the industry is key for Syme, who encourages retailers to support the authenticity of small-batch distillers.
“Continue to support local Australian-made brands, particularly those that have invested in building their brands and have strong consumer support. Give them a pride of place in-store and an additional push at gift giving times, you will get good margins and dollars in the till from these products.”
With the rise of sustainability and storytelling becoming integral parts of the gin experience, Australian gin is well positioned to bring depth to the global stage. As the category continues to flourish, its international counterparts complement the strong sense of innovation unfolding in liquor stores around the country.
The gin category’s growth trajectory shows no signs of slowing down, with consumers eagerly seeking out new expressions and investing in high quality, artisanal gins. In a journey that deviates from traditional to modern, global to local, savvy retailers play an integral role in supporting the exploration of curious consumers.
