English gin will ‘never be as ubiquitous as vodka’

While English gin will “never be as ubiquitous or popular as vodka”, the category is beginning to expand its reach and make inroads in under-developed markets, one expert has claimed.

English gin is becoming increasingly popular in under-developed Western European markets, a Euromonitor analyst has claimed

According to Jeremy Cunnington, senior alcoholic drinks analyst for Euromonitor International, English gin traditional been most popular in the UK, US and Spain, but research shows the spirit is now becoming more popular in under-developed Western European markets.

He said a growing trend of premiumistion across the category is spreading to other markets such as Germany, Belgium, Austria, Switzerland and Italy.

In 2013, the category’s core UK, US and Spanish markets accounted for 66% of global category volume sales, and were the only three regions to exceed volumes of six million litres each.

Cunnington said that burgeoning gin markets have a “greater possibility of strong volume growth” due to a number of inter-related factors.

These include: increased premiumisation across Western Europe boosted by the craft spirits movement; a rising cocktail culture; consumers switching from traditional to “cooler” products; and the fact drinks companies are looking for new sources of growth outside of their core markets.

However, Cunnington adds: “None of these factors are new and nor does it necessarily mean that English Gin will flourish. For example, in Germany, the move away from traditional products, such as beer, korn and brandy, has benefited international spirits categories, such as whiskies and spiced rum.”

While smaller super-premium English gin brands are making inroads into these under-developed markets, Cunnington notes that the majority of growth is still provided by larger brands such as Bombay Sapphire, Beefeater and Tanqueray.

He said this is in part due to the superior distribution of these brands and also “because the smaller brand owners do not want to over stretch their brands’ equities and ruin their super-premium images”.

In terms of other markets, Cunnington identifies France and Scandinavia as holding “huge potential” for gin, but that Africa has the greatest potential for premium and super-premium white spirits.

“While never likely to be as ubiquitous or popular as vodka, English Gin will become a bigger global player,” he concluded.