GIN: The joys of juniper

The buzz around gin shows no signs of abating, and with a raft of new markets beginning to appreciate its charms, the potential for such a complex and heritage-rich spirit could be enormous, writes Alan Lodge.

There was a time when gin was a simple thing, understood by all but, perhaps, ignored by most. The stagnation of the gin market had as much to do with the drink’s image as it did with increased competition and falling interest among bartenders and drinkers alike to experiment and utilise the versatility of the drink.

The past couple of years, by contrast, has seen the market revitalised by a raft of new launches, pushing the boundaries of gin-making to produce spirits which set themselves apart from traditional styles and offer consumers and bartenders a different experience from the dated “granny with a gin and tonic” image that blighted the category for so long.

New traditional gins such as Sipmith, Foxdenton and Berry Brothers’ No.3 have made big strides in making the category fashionable among those looking for something new, while we’re even seeing seasonal variants from the likes of Beefeater in order to maximise potential among summer gin drinkers.

Gin cocktails, too, have benefited immensely from bartender education and increased experimentation, leading to healthy growth for the category over the past 18 months.

“It’s great that there are new gins coming onto the market,” says Simon Burley, brand director for Beefeater and Plymouth gins. “New recipes from established brands and the emergence of smaller gins is fantastic as it responds to a clear consumer desire to experience a range of flavours in their gin.

"There has been a huge growth of 14% in the premium gin category between 2006 and 2009 and this can mainly be put down to the fact that consumers are experimenting.”

Ibolya Bakos, brand manager at Caorunn Gin, says: “There seems to be an increasing excitement among bartenders and mixologists, they love the versatility and unique flavours in gin. They enjoy working in such a rich category and might switch some vodka drinkers to gin which can contribute to category growth.”

New markets are opening up for the category as word spreads. Eastern Europe, in particular, is offering opportunities, while over in the US the rebirth of gin cocktail culture has resulted in huge growth potential, particularly in super-premium, according to Burley.

“We are seeing tremendous growth in emerging markets in Central and Eastern Europe, such as in Russia and Serbia,” he confirms.

“We are also gaining market share in Southern European markets like Italy, where we grew by 34% last year.

“Some of the newer markets, like Ukraine, Russia and Serbia, as well as some of the more established regions, such as the US and Spain, are still showing strong growth potential in the super-premium category despite the quite flat premium category.

Luke Tegner, brands director for Berry Bros & Rudd Spirits, says the growth of other markets is an encouraging sign that other new regions and countries can adopt gin into their regular drinking portfolios.

“In spite of Spain’s economic troubles, the Spanish are discovering the delights of a whole raft of new gins from around the world,” he says. “They have a strong tradition of drinking gin with mixers and are now predisposed to the G&T.

“The US has seen steady growth of premium gins too, and this is set to continue. These two examples show that markets where dark spirits are strong can take to gin.”

Marcelinho Piquero, commercial director at Romate believes the markets where  gin is likely to succeed are defined by one intrinsic characteristic. “We are experiencing a high level of interest in our gin in the US, Australia, Italy, Spain and others,” he explains.

“The common link for all of them is that the consumers there focus on the premium categories, rather than the standard ones, leaving the door open for plenty of growth.”

Out with the old?

While some brands have gone along the innovative path, looking to create a totally new gin experience, others have gone back to basics, stripping away the complication and confusion of multiple botanicals to produce simple, old-style gin that caters for a more refined, gin-loving audience.

No.3 from Berry Bros (BBR) falls well and truly into this category, consisting of six simple botanicals to deliver a gin that takes drinkers back to the days of simple distillation.

The move into gin by BBR was driven by a desire to return gin to its roots, according to Tegner.

“The growth of the category can be attributed to a return to drinks with flavour, after the explosion of flavourless vodka, and a return to traditional drinks and cocktails,” he says.

“Our ‘experiment’ builds on the expertise of distillers with 300 years of experience to produce No.3 – a gin that tastes
as traditional gin should, with juniper at its heart.”

Of course, with each new release, the marketplace becomes ever-more crowded. There is a danger that smaller brands could get lost among the rows of recognised, established brands and further product launches could lead to saturation in the category.

Indeed, there is acknowledgment within the trade that too many new launches can have a negative effect, but the general consensus is that, for now at least, the proliferation of labels helps boost the popularity of gin.

“Yes, there are a lot of new brands on the market, but I don’t think it is overcrowded yet,” says Piquero. “If you look at the vodka category, which is equally as busy, there is enough room for growth. What I think will help the category to grow is the quality of the new launches. Mainly, all new gins focus on the premium and super-premium sectors, helping to create [a sense of] glamour and awareness in the category.”

Constant experimentation and innovation could lead the industry down the wrong path, according to Nigel Tarn, senior brand manager for Whitley Neill Gin, who feels it is vital gin remains true to its heritage.

“For gin to truly taste like a gin, it has to have juniper as the predominant flavour, he says. “Some of the newer entries to the market just don’t seem to be adhering to that principle and this could be detrimental to the category, causing an overcrowding of poor-quality and poor-tasting gins.

“While innovation is the lifeblood of any category, we also have to make sure we don’t lose sight of gin’s heritage and what it really is.”

Back for good?

Gin has come in and out of fashion before and although lessons might have been learned over the course of the lean years, nobody can take for granted that gin is back to stay.

“I am not convinced we will see significant and sustainable growth,” says Bakos. “There are only a certain number of gin cocktails on most menus, and they only use a handful of major established brands. I can always see some of those great big gin brands on the back bar at top-end bars, but achieving a healthy rate of sale seems to be a bigger challenge than availability.

“The ultimate question is how individual gin brands can influence consumers to order a more expensive back-bar gin instead of the house pour.”

The responsibility for ensuring gin’s sustained success lies just as much with the bartenders as the brand owners, according to Caorunn’s Bakos.

“Bartenders are indeed excited about gin,” she says. “Not only due to the rich, exciting and different flavours of individual brands, but also thanks to the new approach of the category that managed to revitalise itself via its more trendy, modern and cool brand building.

“The old-fashioned, dusty image of gin belongs to the past. If the category can maintain being dynamic, consumer-focused and build insight-driven brands, I think gin can have a prosperous future.

“Bartenders could indeed play an important role in recommending different gin brands and gin cocktails according to the taste profile of their customers and emphasising what makes certain gin brands different from others. Sampling and tasting could be an important element to encourage purchase decisions.”

Burley agrees that the role of the bartender is crucial in the modern market to building up brand and category awareness among consumers. “Bartenders play a crucial role in three ways,” he says. “Firstly they develop new drinks and generate word-of-mouth awareness. They are a key conduit between the leading brands and those that wish to experiment with new styles, and they are also vital for showing consumers that gin can be consumed beyond the gin and tonic.”

It seems a common opinion among gin companies that there is only so much they can do as brand owners, and that the really vital part of consumer communication comes through the bars. It’s a philosophy Tarn would like to see maintained.

“We have spent a great deal of time educating bartenders about the complexity and skill that goes into creating and distilling a gin,” he says. “We need to continue working on this education programme, to encourage consumers to experiment with different products available in the category and let them decide which gin serve works best for them.

“An active role for gin bars and bartenders is essential as bartender education from brands is passed through to consumers to encourage trial and repeat purchase. Without the support from bartenders suggesting gin serving options and gin bars stocking a range of premium gins, the consumer will have limited knowledge of the sector and no reason to try new products.

“Consumers are beginning to see gin the way they might a single malt, and bars that stock a wide range of gins are benefiting.”

That final point is an interesting one. If gin can truly achieve the iconic, aspirational qualities associated with single malt whisky then the possibilities for the sector are huge. Imagine what could happen if Asia starts to see gin as a product fit to adorn their drinks cabinets alongside the Cognacs, whiskies and fine wines in which they delight so much.

It’s a long way off, certainly, but if gin is allowed to continue its trajectory of growth without getting sucked back out of fashion, then we could see an entirely new, even more lucrative market open up.

Until then, the innovation, experimentation and general buzz around the gin category in its established markets looks set to continue.

Alan Lodge, August 2010