Brands, beanies and barware: how swag builds buzz beyond the bottle
Spirits giants might spend millions telling you their liquid is smooth, artisanal or triple-distilled, but half of the time consumers are just judging them on the thread count of their free T-shirts.
According to the Promotional Products Industry Statistics report 2025, the branded merchandise market is worth approximately US$26 billion annually, with promotional items typically counting for around 20% of small business advertising budgets, and 15%-20% for events, trade shows and promotional incentives.
In the drinks industry, retail merch is a big deal. When done right, it can be extremely lucrative – and not just from a revenue perspective. Producing branded apparel or accessories that turn your liquid from just another consumable product into a lifestyle brand is a big opportunity for spirits, with the power of converting consumers from casual drinkers into brand advocates and, in some cases, walking billboards.
While it is not reported how much industry giants such as Diageo, Pernod Ricard and Brown-Forman spend on merchandise production annually, it is known that global spirits companies spend millions each year on advertising and promotion, and a significant slice of that budget goes into branded merchandise.
While companies rarely break out ‘merch’ as a separate budget line and exact figures remain opaque, applying a conservative 2%–10% share of spirits giants’ advertising and marketing spend suggests hundreds of millions go toward promotional ‘stuff’ annually.
But much of that spend also goes on swag – free promo material designed to increase brand awareness and generate initial engagement – and there is plenty of psychological reasoning behind why giving away swag is beneficial to a brand.
Swag, promotional giveaways, gifts with purchase – whatever you want to call it – is primarily driven by the principle of reciprocity, which makes people feel obligated to ‘return the favour’ through actions like purchasing, loyalty, or positive word of mouth.
Additionally, freebies create tangible branding that builds memory recall and an emotional connection, increasing brand loyalty and trust. Unlike digital ads, physical promotional products are used and seen repeatedly, creating strong and lasting brand recall. According to a report by Promotional Products Association International, more than 83% of consumers remember the name of a promotional product they received in the last two years, and 58% of consumers are more likely to do business with a company after receiving a promotional product.
What consumers want
As such, never has it been more important for brands to nail their swag – and even more so their retail merch. In a crowded market, well-stitched beanies beat T-shirts that disintegrate faster than a paper straw in your Mojito any day.
I canvassed my drinks industry network to get a better understanding of what promotional freebies and retail merchandise typically land best, and what items are most likely to end up in landfill before you can say ‘hashtag gifted’.
Socks were a runaway favourite for many, while others mentioned they had clung on to design-led hip flasks and kept good quality lighters in rotation for years after receiving them. Extra-large and robust umbrellas were also considered to be “elite” (because nothing says brand loyalty like surviving a downpour under an oversized, booze-branded canopy), and extra-sharp bartender knives (with replaceable blades) were heralded as key assets to a bar cart.
But on the losing side, bar spoons beyond the first were considered unnecessary (I have eight in my kitchen drawer), tote bags with the structural integrity of two-ply toilet paper were rightfully judged as useless, and branded Glencairn glasses were deemed not worthy of the cupboard space they take up.
Zippy Bąkowska, marketing director of Amber Beverage UK, says freebies with the most staying power are items that have been “thoughtfully designed”, or are “really unusual but very functional”, such as reusable thermos coffee cups, wireless headphones, or even pound-shaped trolley coins. Items with an unexpected twist – like a pen that doubles as a bottle opener, or a notebook made from recycled bar menus – are 30% more likely to be retained and appreciated, according to industry surveys cited by swagbar.com.
For Jameson Irish Whiskey, this level of practicality and innovation is king. Lynda Cody, head of experiences, partnerships & advocacy, notes that in their ongoing offerings, the brand uses consumer insights to design retail merchandise with intention. “For example, the Jameson consumer is often a seeker of experiences, so our water bottle has a functional clip that connects to a backpack,” she explains.
But above all, the key thread tying all of these successful items together – both freebies and retail merch – is their quality, and for Botivo founder Imme Ermgassen, this, paired with value, relevance and cultural fit, is the key ingredient for successful promotional merchandise. “There’s no point doing merch that isn’t high quality,” she says, explaining that well-made items are more likely to be purchased, used and valued as consumers typically gravitate towards merch that feels good and lasts.
Yet according to merchandise producer Mercha, more than 70% of event swag ends up in the bin before attendees even leave the venue. That’s thousands of branded bottle openers, jiggers and novelty sunglasses gasping their last in conference centre bins as the true martyrs of marketing misfires.
Wasted opportunities
And here’s where free swag often lets the side down – because unlike retail merch people choose to buy, much of it is destined straight for the bin. As the drinks industry becomes increasingly progressive in its environmental and sustainability efforts, this high percentage of waste being produced is surprising.
Global ambassador for Absolut Ricardo ‘Rico’ Dynan says the brand avoids landfill swag by focusing on fewer, higher-quality items people actually want to use. That, he argues, enhances brand image and creates exclusivity. “Lots of brands waste a lot of money and just put things in the wrong places,” he says. “If a T-shirt lasts one wash, what’s the point? We all want our adverts on people’s chest, so let’s try and create something that they want to wear, rather than just something we want to get a photo of.”
Ermgassen believes there is “a thin line between merch being wasteful and where it adds value, and builds a story of your brand. And that’s quite a tricky tight rope to walk. The way that we’ve always approached merch is we ask: ‘How does it add value to people? How does it help the self-expression?’”
Grainne O’Neill, director of strategy for New York bar The Dead Rabbit, shares that in their experience, “the best merch is high quality, closely tied to the brand, and gives guests a way to feel part of the story. People want something that connects them back to their visit – it’s a memory, a keepsake, and a signal of belonging. We’ve experimented with different designs and offerings over the years, and always come back to the idea that simple is best.”
For Michelle Chumash, there is one brand that resonates so strongly with her, that she has filled her home with thousands of pieces of merch. “I’ve been collecting Absolut since 1990,” she says. Her collection started with Absolut ads taken from magazines and soon snowballed into her collecting anything with the brand on it, resulting in her owning up to 400 bottles of limited edition Absolut, and “thousands upon thousands” of other branded items.
Symbols of identity
If swag is about first impressions, retail merch is about long-term identity, and that’s why subtle, high-quality pieces also endure. The Spirits Business’ senior reporter, Rupert Hohwieler, still wears an Arc’teryx jacket gifted from High West, and a distillery-exclusive cap from Dutch Barn because they don’t scream ‘merch!’. I feel the same about my green Port Charlotte sweatshirt and my waterproof Gill Marine jacket from The Botanist Gin – both are stylish enough for daily wear while being subtle enough to not make it look like I’m trying to make booze my entire personality at the nursery gates.
For many, wearing a spirits brand across your chest is akin to wearing a tee with your favourite band on it. US-based Five Tides Apparel explains band tees are “symbols of identity, rebellion, nostalgia, and community”. Wearing one is an act of identification – a silent statement that says, ‘this is who I am’. Wearing a hoodie with your favourite indie Tequila brand sends a similar signal.
Ermgassen explains that for brands that play a role in culture outside of their core product, like bands do, there is a clear opportunity to step into retail merch. “Botivo plays to culture a lot – we work with art spaces, queer communities, with music, and that’s kind of where we want to be, so it makes sense for us. If we were just a non-alcoholic drink, and we didn’t play outside of the consumption of drinking it, then it would be merch that has just been bolted on. It has to be relevant to the spaces that you play in outside of your product.”
For canned cocktail brand Moth, merchandise is all about elevating the drinking experience for the consumer while tapping into culture outside of drinking. “We strive to produce meaningful merchandise that truly provides a solution,” says co-founder Sam Hunt. In July, the ready-to-drink brand relaunched its limited edition Crossbody Cooler following sell-out success last year. Created in partnership with Stubble & Co, it can keep up to four Moth cans cool for up to five hours, and Hunt says it has been the best performing piece of merchandise they’ve created to date, resonating with the brand’s audience due to its stylish functionality. And with a price tag of £60 (US$80), selling out in a matter of weeks proves they’ve got the recipe right.
Brand collaborations
The joining together of two brands is a common thread in the merchandise market. Collaborations with complementary brands are a great way to drive growth. Bringing together two separate categories, such as apparel and spirits, is a clever way to open brands up to new audiences, says Fredrik Svalstedt, partner at leading design agency Pond Design, who worked on the collaborative multi-piece capsule collection from Jamesons and workwear brand Dickies.
“Clothes tell the story about you and who you are and who you want to connect with, [and] what you drink also tells me something about who you are. That’s why it’s interesting today to see these two different categories collaborate even more than a couple of years ago,” Svalstedt says.
Tequila brand El Rayo has approached merchandise in a similar vein, focusing on building relationships with consumers that align with its values, beyond just enjoying Tequila. Tom Bishop, El Rayo co-founder, explains: “Our merch is designed for a creative, culturally curious audience – people who appreciate good design and thoughtful storytelling. They tend to discover brands through creative subcultures – fashion, art, music, interiors – and value expression as much as function.”
Typically, the brand gravitates towards collaborations with inspiring, up-and-coming Mexican artists and designers. “Everything we create is led by creative relevance, not just logo-slapping,” Bishop says, noting that “because we invest in good design and thoughtful storytelling, merch becomes a vehicle for self-expression – whether someone’s framing one of our limited edition prints, throwing on a jacket at a festival, or gifting a special bottle.”
But co-branded merch isn’t just for spirits producers. For The Dead Rabbit’s O’Neill, teaming up with other brands, such a Guinness and Irish candle producer FieldDay, has been an opportunity to “introduce both partners to new audiences”.
Attracting the trade
For most brands, the intended recipient of their free swag is bartenders. Paul Mathew, founder of alcohol-free apéritif Everleaf, explains the purpose its branded swag, such as cocktail stirrers and Everleaf tags for the sides of glasses, is to help bartenders, servers and customers identify the non-alcoholic drinks in a round, which he notes is “obviously good for our visibility, too”.
Meanwhile No.3 Gin’s UK brand ambassador Kirsten Brand shares its POS (point of sale) strategy is also very much trade-focused. “With the primary audience being bartenders, bar managers, and on-trade partners, most of what we create is to support them – whether that’s through bar tools to streamline service, eye-catching pieces that drive visibility when there’s a menu special, or collectible items that build loyalty and engagement behind the bar. Across the board, we aim for a balance of premium quality, visual impact, and practical utility.”
And then there are trade giveaways that are designed to be as memorable as they are useful. Outside of quality, Ermgassen says creating items bartenders will connect with is key, which is why this summer Botivo launched matchbooks designed to resemble miniature versions of the brand’s bottle, with its signature yellow wax seal – an item that is both memorable and useful.
“People just love tiny versions of big things. It’s very basic, but the matches, for me, are things that are going to be cult, collectable items. They’re really, really big for our trade customers. But I think trying to do something that unexpected or a bit fun generates energy. I don’t know what the psychology is behind it, but the matches have just created so much excitement.”
Ermgassen explains these matches have been produced in limited quantities in a bid to make them feel exclusive – an approach that helps create buzz, strengthen brand identity, and adds value for recipients beyond just traditional branded items.
At the annual Tales of the Cocktail (TOTC) conference, gravity isn’t the strongest force in New Orleans – it’s swag. Step into any party and you’ll be pulled into the orbit of polyester bumbags, plastic hand fans, and T-shirts destined to become your next pyjama top, all flying at you like Mardi Gras beads raining from a Bourbon Street balcony.
When I attended the conference this year, friends warned me to leave room in my suitcase for all the swag I’d collect. What I thought was exaggeration was an understatement. Swag was everywhere, all week – some clever, some forgettable. Nothing says ‘please stock our booze’ quite like a logo-ladened yellow shoelace that no bartender ever asked for. But a few brands nailed it.
Ford’s Gin went all in at its Negroni Sessions party, building a festival-style merch stand, themed around its vinyl record celebrating the Negroni cocktail. With Grammy-nominated artwork from Morning Breath Inc, guests could choose from a full line of merch. The result? A runaway hit. “I got texts all week from people spotting others wearing it,” recalls founder Simon Ford.
But what made it work was quality and design. “It is very easy for a brand to just slap their logo on an item and call it a day, but our philosophy is to create items where the design comes first and the brand logo is added as a detail,” says Ford. “The friends of Fords Gin support us, and recommend and use our gin already. We don’t expect them to be walking billboards of the brand beyond that.”
Still, not everyone takes such care. “Too many cheap plastic throwaways end up in dumpsters,” Ford warns. “Marketers, please – make things people actually want and will use.”
Myronpromos.com estimates 47% of consumers keep promotional products for more than a year but, on the final day of TOTC, I met sustainable solutionist Lauren Ballard, who was hosting a ‘swag swap’ downtown, which enabled event attendees to sustainably offload any swag they had picked up throughout the week and exchange it for items they may have missed out on attaining. This is just one environmental solution for dealing with unwanted items, but primarily, Ballard’s hope is brands become more intentional and mindful with their production.
She implores: “If you are producing something that you want to brand, make sure you’re really thinking about it. Are you producing it locally? What is it made of? Is it made with intention? What’s the purpose? Does it make sense for your activation?”
At the end of the day, merchandise is the metric no one admits they’re judging. Nail it, and you’ve got lifelong fans parading your logo through airports and festivals; cut corners and it ends up in the bin along with that consumer’s loyalty. Whether you like it or not, for many consumers, the number of times your spirit has been distilled often comes a distant second to whether your free T-shirt survives the first spin cycle.
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