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Feature
World Spirits Report 2023: Gin
Gin had a troublesome start to the year, but it looks to be heading toward modest growth, with particular opportunities for the US.
“Trade in UK food and drink is beginning to stabilise after the challenges of Brexit, a global pandemic and global weather events in recent years, which led to significant supply chain disruption, surging energy prices, and volatile ingredient costs,” says Dominic Goudie, head of international trade at the Food & Drink Federation. While total food and drink exports from the UK rose in the first half of 2023, gin had a more troublesome six months after a strong year of growth in 2022. Gin exports fell by 12.4% in volume and 9.6% in value to £305.3 million (US$378.1m) during the first half of the year.
Looking at the global gin category, however, figures from Euromonitor International paint a more positive picture. The analyst forecasts the category will end the year in growth, up from 105.3 million nine-litre cases in 2022 to 111.03m this year. This growth is forecast to continue in 2024, although at a slower rate, to reach 116.5m cases.
The category is also expected to grow by value, although modestly. Gin sales were worth US$22.8 billion in 2022 and are forecast to reach US$23.97bn in 2023, and US$25.1bn next year (Euromonitor).
While UK exports may be slowing, Pernod Ricard’s Malfy Gin has been on the up since it was bought in 2019, and reached 400,000 cases in the firm’s 2022/23 fiscal results.
Tanqueray and Gordon’s owner Diageo also saw success in its gin portfolio in the year ended 30 June 2023, with organic net sales for gin up by 5% compared with the previous year.
Speaking to The Spirits Business this year, Spiros Malandrakis, Euromonitor International’s head of research – alcoholic drinks, highlighted how gin is advanced in large Western markets, such as the UK and Spain. However, highly coveted markets – most notably the US – hold significant opportunities for growth.
Malandrakis noted momentum in the US in the prestige and ultra-premium segments, which could be key to brands cracking the market.
So what are consumers looking for from gin brands today? With an oversaturation of brands on the market, creating a point of difference remains imperative.
“We’ve pinpointed several growth opportunities, including the rising demand for craft spirits, the expanding market for botanical-infused varieties and the increasing popularity of premium and exotic ingredients,” notes Dominique Makatita, co-owner and founder of Dutch brand Sir Edmond Gin.
Combine intriguing ingredients, well-strategised marketing campaigns, plus a healthy measure of celebrity influence, and 2024 is looking bright for the category.
Click here to read our World Spirits Report for the Irish whiskey category.
Gin brands to watch in 2024
Renais
There has been an influx of celebrity gins this past year, but when Harry Potter star Emma Watson and her brother, Alex Watson, released Renais in May, our attention was piqued. Alex, Renais’ CEO, brings his experience from Diageo to the brand. With his drinks industry expertise and Emma’s celebrity status, we’re expecting big things from this duo in the coming year.
Four Pillars
New ownership always brings the potential for change – which is why we will be keeping a close eye on Four Pillars next year. In July 2023, news broke that Sydney-based food and beverage marketing company Lion had acquired the remaining 50% stake in Australian gin Four Pillars for an undisclosed sum. Having grown a steady fanbase over the years, will 2024 be the year Four Pillars transforms into a truly global brand?
Silent Pool Gin
Another acquisition that caught our attention in September was William Grant & Sons’ purchase of Silent Pool Gin. While financial details were kept secret, family-owned William Grant & Sons stated its plans to grow the brand’s presence in Europe, North America and Asia Pacific. William Grant has a proven track record of growing successful gin brands with Hendrick’s – so it will be interesting to see what the company does with its new addition.