You’ve likely seen the reports – the gin boom is officially over. And yes, on all accounts the market numbers seem to suggest that. For example, premium-plus gin volumes (the segment that was projected to outperform other price points) fell by -16% during 2023, with a forecast CAGR of -5% between 2023 and 2028 (IWSR). But at Mangrove, the numbers tell a very different story – every one of our gin portfolio has seen continued, substantial sales growth, and I think that tells a story in itself.
Coming of age
Considering that every one of our gin brands is in growth, and therefore outperforming the trajectory of the wider category, what do they have in common? Mangrove deals in premium, independent spirits. And so, they all have an interesting story, are innovators in their own right, and above all else, are high-quality liquids. And I think this is the ‘triple-threat’ of qualities that keeps them performing.
The big bust we’ve seen in gin has largely involved gin liqueurs, many of which have synthetic flavours that are crafted in no time at all, responding to fast-to-falter trends. The success stories that remain in the category are doing some degree of maturing (not in the spirit sense) but in that they’re high-quality, sophisticated, and where there’s added flavour it’s subtle and refined. Perhaps gin’s simply ‘coming of age’ alongside the demographics who contributed to the boom – and the more civilised spirits are the ones faring best.
Great examples of this are Nordes Gin – a uniquely mediterranean gin that absolutely transports you to warmer shores. Or Columbo London Dry Gin, delicately spiced with curry leaves as one of its chosen botanicals. The result in both is subtle, but appeals to gin lovers who want to experiment with different serves.
Independent competition
I’m often asked how independents can compete with the major players – especially in less buoyant categories. And for me, it’s not a question of competition – because that’s never going to be a fair fight. The current landscape for spirits is tricky and expensive. And global conglomerates have the deep pockets and economies of scale to make it on to whichever bar and shelf they please. And let’s be honest, gin is a category built on these names because they’re consistently good liquids.
But I would argue that it’s the independent brands who deliver the innovations and fresh approaches. Challenger brands create trends, and drive whichever category they’re in to do better. Maybe it’s by doing things more sustainably like FAIR, maybe it’s with flavour experimentation like Glendalough; however they innovate, it then pushes the big boys who rest on their laurels to be better and follow suit.
We also know that consumers are more informed and more adventurous than ever; we have the internet and smartphones to thank for that. And as a result, people have easier access to great products beyond what’s on the shelves of their local store – which is precisely where our gin brands come in.
The on-trade has its role to play in all this too. So many people discover their new favourite upon the pour of a trusted bartender. Adventurous consumers (which I’d argue are a majority) don’t want to come in and be bored by their drink. They want to trial new brands, sample new serves, and be served an experience in their proverbial glass. And so it’s the bartenders role to create that experience by imparting their knowledge with a stellar recommendation.
Part of it also falls upon our role as a distributor, which is to ensure that our brands are well represented in the right venues. For larger venues, this is showing you have your finger on the pulse by always stocking a few interesting brands that are gaining market share. For smaller venues looking to curate their gin range – keep a few London dry varieties that taste great in a martini; look for the more sophisticated flavours that are derived from botanicals, not from synthetics; and branch out beyond the big brands that everyone knows, to cater to the adventurous consumer.
Independent brands are great at partnerships and marketing too – and are often more than willing to support the activation of their brand in-venue. Work with brands and distributors on this experience piece; the bolder the better; and jump on the opportunity to take part in activations if a brand or its representatives reach out.
Maintaining momentum
So, with all this ‘refocussing’ on core quality – how do gin brands maintain momentum in a consolidating category?
Gin is and always has been a strong player across both the on and off-trade; a gin and tonic is super simple to make at home, and the default order for millions of bar frequenters nationwide. And this delicious quality will keep it forever popular, to some degree. But that doesn’t mean that it can’t evolve.
A great example of this is the current growth of RTDs and the opportunity it presents. One big gin brand (which shall remain unnamed) does a very good job with its canned G&Ts and Gin ‘n’ slims. East London Liquor Co. has seen this success and replicated it by raising the bar again, with its delicious canned Grapefruit G&Ts – a convenient tipple that regularly sells out due to popular demand.
Another way of maintaining momentum is to educate – and this is an important task for every independent brand, in all categories. The humble Gin and Tonic may be a simple serve, but it’s so easy to experiment with. Different mixers, different garnishes – it’s the brands’ role to create that signature serve and ensure every drinker understands how to enjoy the spirit best. Yes, in many ways gin is less complex than the likes of aged spirits like whisky, in its production, but it’s also so adaptable for innovation. The brands that enjoy continued success will be innovators, releasing new products, and responding to what consumers want, and communicating that to drinkers, effectively. From my experience, they’ll also have great stories, a strong ethos and reason for doing what they do, all built around a delicious, high-quality liquid.
The boom has ended, and for many brands, they went bust. But the last 15 years has still been a wonderful thing for the category. It repositioned itself with younger generations, brought numerous new success stories to the fore, and now the wheat will be separated from the proverbial chaff, leaving more room for those who are doing a great job. There will still be a residual increase in gin drinkers as a result of the boom, and that can only be good for business.
Nick Gillett is MD of premium spirit specialist Mangrove UK.