UK independent spirits industry hits £2bn turnoverBy Nicola Carruthers
The independent spirits industry in the UK has reported a record year for turnover, breaking the £2 billion (US$2.6bn) barrier for the first time in 2018.
According to private equity firm Growthdeck, turnover reached £2.14bn (US$2.78bn) in 2017/18, up from £1.98bn (US$2.57bn) in 2016/17.
The figures exclude independent UK distillers that only produce whisky, which account for around £160 million (US$208m) in turnover.
The equity firm attributed the growth to independent producers charging premium prices for their products.
Growthdeck also said that the “distilling of spirits can be altered quickly to match changing consumer tastes, which means products do not get left behind”.
In particular, gin producers have extended their lines to include pink and flavoured variants “to meet demand”.
Recent figures from the Wine & Spirit Trade Association (WSTA) show 73m bottles of gin were consumed in the UK last year. The value of the UK’s flavoured gin market increased by a staggering 751% in 2018.
Gary Robins, head of business development at Growthdeck says: “Growth amongst independent spirits businesses shows little sign of slowing.
“Successful spirits businesses have proved to be innovative in bringing new products to market quickly. This is often done through capitalising on the relatively quick production process of spirits, such as gin and rum.”
“The increased spending power amongst ‘millennials’, which is a key market for boutique drinks brands, means the sector’s growth has legs.”
Last month, Horse Guards gin owner Innovatus Drinks launched a £1.2m (US$1.5m) fundraising drive through Growthdeck to fund its “ambitious” expansion plans.