Nick Gillett: Flavoured spirits – top tipples or faddy favourites?

By Nick Gillett

Published: 15 July, 2024

Flavour. When it comes to food and drink – it’s the most important thing. As a producer, you can be entirely carbon neutral, use the finest ingredients, have the sharpest packaging – but if your liquid isn’t up to scratch, you won’t last long. But beyond that, producers are now using flavours to expand their ranges, tap into new markets, and attract new demographics of drinkers to their brands. As a man who has sampled thousands of liquids and has reasonably good taste (although I’m sure my colleagues might not agree, especially when it comes to taste in music or fashion!) here’s my reckonings about flavour trends in the spirits industry.

A first type of flavoured tipple

In my mind, the types of ‘flavoured’ spirit that are available tend to fall neatly into two categories. And each of these categories caters to different audiences and occasions.

The first of these categories contain what might be described as ‘delicately’ or ‘sophisticatedly’ flavoured spirits that sit within the premium end of the market. The flavours might be more traditional or more unusual, but subtle. The way the spirit is flavoured might be more involved or use natural ingredients.

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A great example of this type of spirit can be found in the range of Portobello Road Distillery. Whether it’s the celebrated Butter Gin, inspired by a Dickensian short story; the Toasted Coffee Bean Vodka that’s become a firm favourite of the on-trade; or the British Asparagus Vodka that started as a limited edition run that was so popular they had to distil more – each liquid is as delicious as the next. This category is catering to the adventurous drinker, those who enjoy finding new bottles to enjoy and share with friends. And in many cases, the more unusual the flavour – the more it piques the curiosity of the discerning consumer.

A second type of flavoured tipple

The second category spans a larger chunk of the market, with abundant options at the more affordable end. These spirits are fun, bursting with flavour, and largely appeal to a younger demographic of drinker. The success of Au Vodka is a great example; Fruit Punch, Cosmic Berry, and Pink Lemonade are just a few of the flavours winning over drinkers around the world.

Let’s face it, sometimes you just want something tasty, mixable and very drinkable. That doesn’t mean the quality’s not there. In a lot of cases there are some exceptionally well-flavoured liquids, and a lot of the big players in spirits are behind them. But it’s also this part of the market that experiences the ‘boom’ of sickly-sweet synthetic flavours. And whilst hundreds of new options might pop up over the next few years, in my opinion only a small proportion of these will stand the test of time.

Fad or forever?

So, what flavours are trending? Are flavoured spirits in demand? And will the purists eventually stamp out the sacrilege that is adding flavourings to a refined and delicious beverage?

To answer the former question, coffee is enjoying a resurgence once again, and spiced flavours are definitely on the up. The rise of Mexican culture and cuisine has likely contributed to both, as has the rise of cocktails like the Espresso Martini and the Margarita. In fact, the rise of coffee as a flavour is now widening to other dessert flavours, like Hazelnut and Chocolate, where mixed spice is graduating onto more singular, complex flavours like chilli and jalapeno.

The base spirit for flavoured bottles is also widening. No longer focused on just gin and vodka, we’re seeing more appetite for flavoured tequilas, rums and whiskies (the latter of which is incredibly hard to swallow for the malted purists out there). In fact, flavoured spirits as a category is projected to grow at a CAGR of 15.5% right up until 2029. And that’s substantial.

The benefit to brands

So, what role do extended flavours play from a brand perspective?

First of all, we need to understand how consumer tastes evolve, and when this is paired with brand loyalty it can be a powerful tool to grow your audience. When we, UK drinkers, take our first sips of alcohol at the impressionable young age of 18, we’re drawn to flavours we’re familiar with. Whether it’s fruit ciders, alcopops and RTDs, or flavoured spirits paired with a simple mixer – the most accessible to us are lower abv spirits where flavours are comfortingly sweet and simple. But of course, palates evolve, and as we age and earn more purchasing power we discover new experiences, new foods, new drinks and our tastes slowly develop. By winning over consumers early and catering to these evolving tastes, a brand can build a loyal and engaged customer base.

Not so long ago, a brand that was quickly expanding its flavour range was viewed as one that might be in trouble. But that’s not so much the case now. Consumers are more explorative and demanding than ever – they want to experiment, try new things, and not merely buy the same bottle week in, week out. Limited edition releases cater to this perfectly, and when tying new flavours to the season, or wider influences that matter to your audience – it can pack quite a powerful punch in to your commercial success.

But beyond the consumer, there is another benefit flavoured products bring to your brand. And that’s with the on-trade.

For any spirit to be a success, it must win over the great British bar. And with cocktails more popular than ever, providing something new that mixologists can get creative with is a stellar way to drive brand awareness and product appreciation.

Caution, and optimism

But with all this said – take care. Moving too quickly and being incoherent with your product range can be a mistake. Make sure it’s in line with your brand, your ethos; know that there’s an appetite for it and invest the right time and effort into marketing each SKU. One rushed and low-quality liquid can damage your overarching brand.

Are flavoured spirits here to stay? Absolutely. And if you’re a prescriptive drinker – I say get over yourself and try something new. There are some fabulous options out there and if you need to find one, independent brands are leading the way and doing it best.

Nick Gillett is MD of premium spirit specialist Mangrove UK

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