GIN / PROVENANCE: Is it a London thing?

Gin is experiencing a resurgence of interest, particularly in the premium sector, and brands are beginning to promote characteristics other than provenance, such as heritage and botanicals. By Clinton Cawood

The fact that the most common style of gin explicitly mentions London suggests that the origins of this spirit are understood and well communicated. The provenance of various London dry gin brands is something that is used very differently by marketers, however.

A strong link with a particular place of origin is undoubtedly a useful marketing tool for a brand, differentiating it from the pack. Success without it is possible, however, as category leader in the UK, Gordon’s, makes very clear. It may clearly say “London Gin” on the label, but the Diageo brand is not particularly associated with London. As global brand director Arek Melemetci believes: “The country of origin of white spirits is less important than with other drinks such as whisky. This is due to the fact that they can be produced anywhere without any geographical limitations.”

Origin awareness
This has not stopped some gin brands from placing a significant amount of importance (and investment) into their place of origin. The most high profile of these, particularly given recent marketing activity around its links with London, is Chivas Brothers’ Beefeater. Brand director Nick Blacknell believes that provenance is “hugely relevant”, but does acknowledge that this is particularly significant for Beefeater. “We’re the last major gin brand still made in London. It’s like saying you’re the last Scotch in Scotland. But is provenance relevant to all gins? Obviously not. In gin you have a decision as a marketer as to what you focus on.”

For the managing director of Broker’s Gin, Martin Dawson, this decision is an easy one. “I don’t think provenance generally is a major support,” he says. “The fact that a gin hails from Menorca, Scotland or France is of little importance to the product’s overall success.” Dawson goes on to express his suspicion that: “Consumers in the UK assume they are buying an English product and most consumers outside the UK, and I include the US here, don’t really pay much attention to place of origin.” He does add, however, that consumers of more premium products are more “origin aware”.

Bombay Sapphire’s global brand director, Andrew Carter, agrees, saying, “More and more of us are keen to know the origins of our food and drink and to be reassured that the finest ingredients have been used in their production.”

For Carter’s brand, provenance is integral to the brand, but in a less obvious way than for some. He comments that while the brand’s English origins are important, “we’re also proud of the provenance of our botanicals”.

A brand that prioritises other aspects over provenance is Hendrick’s. Brand manager at William Grant and Sons, Jun Hirst, points out that Hendrick’s is produced “in Scotland, which is so closely associated with the production of whisky”, and goes on to admit that “customers are always rather astonished”. In practice, Hirst acknowledges that “although we mention that Hendrick’s is distilled in Scotland, the gin does not rely on its place of origin to gain loyal following”. Plymouth Gin brand manager Andrew Jack would agree, saying that although “provenance can be an effective marketing tool for gin, it is by no means mandatory for success”. For Jack, “Provenance can be a very important underpinning for the brand. However, for some, style and image is more important than provenance and substance.”

The marketing mix
Perhaps the most relevant and realistic approach to provenance as a marketing tool in gin is to see it as just one part of a brand (albeit an increasingly important part, given growing consumer interest in factors like these). As Blacknell says, “It’s interesting what’s happened in the industry. Sense of provenance wasn’t as important 10-15 years ago, but now, largely led by the food industry, consumers do care where products come from. Beefeater got lucky that it didn’t move out of London.”

Blacknell goes on to explain, “There are a number of product stories that interlink – the production, the fact that we’re a dedicated gin distiller, and our London provenance.” The idea of using a mix of factors is also relevant to Dawson, who lists such factors as price, packaging, merchandising and sponsorship as appropriate tools in marketing a gin.

One explanation for the mix of factors used by various premium gin brands for the purposes of marketing is that the relatively low number of brands (compared to a category such as vodka) allows for brands to have real points of difference. These differences can be a gin’s origin, but can be related to factors such as botanicals or distillation method. In a more saturated market, like vodka, there are far fewer “unique” factors remaining for a new brand to differentiate itself.

An example of a brand making use of its botanicals to differentiate itself is Whitley Neill, but founder Johnny Neill admits that their actual use was “a bit of a fluke. I was originally looking for English botanicals, but then came across Baobab”. The fruit from the African tree, as well as the addition of Cape gooseberries, provided the flavour profile that he was looking for. It has since become quite an integral part of the marketing for the brand. Whitley Neill’s logo, for example, is a Baobab tree. Neill is careful about how this is positioned, however. The brand’s tagline is “Inspired by Africa. Made in England”.

Melemetci makes an important distinction, bringing the idea of heritage into this marketing mix, saying: “Provenance as a marketing tool for gin is not as effective as heritage, which plays a huge part in the consumer’s perception of a drink.”

Premium promise

Regardless of the origins of premium gins, or how they are differentiated from other brands, this is the sector of the gin market showing real promise, and inspiring significant optimism from those involved in the industry.

Dawson says: “I think the UK market can be encouraged back into growth.” He suggests a number of ways to achieve this, including education and creative support of the category. Key for Dawson is to “get young drinkers to appreciate all that gin can offer in terms of taste and sophistication”.

Growth is limited to the premium end of the spectrum, however. Blacknell comments that “although the gin category doesn’t look that healthy, you have to look at the premium end”. Jack adds: “Some of the cheaper own-label gins are growing at a good rate, however these will be cannibalising the lower end of branded gin rather than actually growing the category.” He crucially adds: “Premium brands with a genuine point of difference will prosper and grow the category.” While Melemetci confirms that “the global gin market is growing rapidly at the premium end”.

 There is another factor that is fuelling a revival of gin sales – one that is not easy to deliberately create. Jack speaks about gin’s “ability to become a cool category again”, while Blacknell believes that “people forgot about gin, but now it’s coming back into fashion”.

Carter mentions that, in addition to a consumer interest in trading up to premium spirits, other consumers assisting the category are those “looking for an alternative to vodka”. Gin offers a significant and varied alternative to vodka, both in terms of long serves or classic cocktails. As Jack puts it: “Vodka will always be a strong category, but the benefits of gin, particularly in mixology, can undoubtedly lead to success.”

New and exiting
The resurgence in this category is evident, and this has resulted in a predictable influx of new products. Instead of seeing these brands as competition, Blacknell believes they will “bring more excitement to the category”. Jack confirms that “the new entrants to premium gin will undoubtedly have a halo effect”. Hirst believes that, although “the premium gin market is still relatively small, exciting new brands have caught the attention of the consumer”. A recent example of this is a new blue gin brand entitled The London Gin. Another newcomer from Old St Andrews, a whisky producer, is Pink47, a 47% ABV gin in a multifaceted bottle. As more brands enter the market, innovation and differentiation will be increasingly important.

The US market, while also flourishing at the premium end, is possibly an even greater source of optimism for producers. Dawson describes the US market as “buoyant, with a number of new brands having launched in the last ten years”.

Think different
While some brands still rely on the relatively safe gin and tonic as a recommended serve, a number of players are beginning to deviate from the norm. Hendricks is an obvious proponent of this, with its twist on the traditional G&T serve, substituting lemon or lime for a slice of cucumber. Hirst explains: “While gin and tonic remains the classic drink for gin, consumers are welcoming unusual twists.”

The recent resurgence in the popularity of classic cocktails is an even more significant development for premium gin. For Beefeater, Blacknell confirms that “globally, we try to avoid the G&T”.

The critical factor for the category, as it returns to growth is, as Blacknell says, that “Any brand has to differentiate. Provenance is the easiest for consumers to grasp, as there’s a history of that with other spirits. Botanicals or methods of production, are more difficult to explain.” Gin does, however, provide all of these factors for brands to differentiate from others. And, with relatively few brands in the market, differentiation is still possible to achieve. At least until the real rush of new arrivals.

© db July 2007