‘Craft’ spirit launches grow 265% in five years

Worldwide launches of spirits brands positioned as ‘craft’ increased by 265% between 2011 and 2015, new research by Mintel has shown.

New Mintel research exemplifies the rapid growth of spirits brands marketed as ‘craft’

So-called ‘craft’ brands have so far accounted for one in seven (15%) of new spirit launches to-date in 2016, up from just one in 20 (5%) in 2011.

According to Mintel’s Global New Products Database, half (49%) of all ‘craft’ spirits launched between 2011 and 2015 occurred in the US, while 42% occurred in Europe and just 4% were in Latin America and 3% in Asia Pacific.

More than half of US consumers surveyed by Mintel said they believe ‘craft’ alcohol brands are of “higher quality” than big brands – a thought that was mirrored by surveyed consumers in Europe.

“Craft spirit launches are growing at a rapid pace and will continue to rise in more mature markets – particularly the US – as consumers continually seek out ‘special’ offerings,” said Jonny Forsyth, global drinks analyst at Mintel.

“Despite being a relatively small sector of the market, craft spirits are growing in response to the huge consumer-led demand for more authentic, more distinctive, more local, less processed and more interesting spirit brands.”

The whisky category saw the most ‘craft’ launches in 2015, accounting for 43% of new products, while gin accounted for 37%.

“For craft producers, gin has the advantage of taking days rather than years to produce, unlike whisky,” added Forsyth. “Therefore as start-ups seek to balance production of more nuanced spirits with the commercial realities, gin is an appealing choice.

Millennials are driving the ‘craft’ spirits boom, believes Mintel, with 75% of US consumers aged 22-39 agreeing that such brands are of higher quality than large-scale labels.

Flavours have also been identified as a driving force in ‘craft’ spirits as almost half of all category launches in the US so-far this year have been flavoured

“Traditionally, many craft distillers have stayed away from flavouring spirits as this is seen as less premium,” added Forsyth.

“However, with flavour a key driver for spirits drinkers in many countries, craft innovators are now seeking to use more premium, nuanced and naturally flavoured innovation. This is a route that craft brewers have previously followed.”

Mintel’s research looked at brands with ‘craft’, ‘artisan’ or ‘small’ in the product description.