WHITE SPIRITS: GIN “Every manufacturer is shouting


about botanicals because consumers want to hear it, but they have always been there.” Bacardi’s Bombay Sapphire has


also been strong at pushing the botanicals message and continues to occupy a flagship position in DF&TR gin as an innovation leader. “Bombay Sapphire has been the


number one gin brand in GTR since 2009 and acts as the sign post for the exploding gin category when merchandised well,” describes Mike Birch.


Above (left to right): Malfy Gin contains Italian juniper and five other botanicals; Chase Distillery’s Pink Grapefruit & Pomelo Gin; and Whitley Neill Rhubarb & Ginger Gin.


off the shelf,” says Jonathan Marsh, Head of Global Travel Retail, Quintessential Brands. The firm’s gin portfolio, which


includes Greenall’s, Thomas Dakin, Berkeley Square London Dry Gin, Bloom and Opihr, grew by 63% in the year ending 31 March 2018. This year, a tie-up with Dufry


resulted in the global launch of Berkeley Square at London Heathrow Terminal 5 and Gatwick South. It has also achieved noted success


with Greenall’s, resulting in the 2018 launch of a new liqueurs range. Partly contributing towards the


mass appeal for the liquid is gin & tonic’s status as a brand in itself, as customers yearn for knowledge. “The consumer wants refreshment


Right: Greenall's London Dry Gin Extra Reserve GTR Exclusive 70cl.


in every drink they have – the value is growing in the entire category because of the experiential piece,” continues Marsh. “Every element of the G&T has changed, from the refreshment piece to pricing, choice and experience. “


“In our view, the gin sector is still being driven by premiumisation; it is safe to say that the market continues to exceed expectations in terms of consumption, the appetite for new flavours and the number of new brands.”


Diego Talavera, International Sales Director, González Byass


52 TRBUSINESS


More mileage in premium? With a copious assortment of gins touting their ‘premium’ and ‘ultra- premium’ credentials in travel retail, it begs the question: has the premium trend reached its peak? “In our view, the gin sector is still


being driven by premiumisation; it is safe to say that the market continues to exceed expectations in terms of consumption, the appetite for new flavours, the number of new brands and the number of new producers shows no sign of slowing down in the near future,” comments Talavera. Ultimately, what matters to


consumers is that the authenticity and differentiation of the liquid associated with the now colloquial premium and super-premium taglines is honoured. “A handful of brands have


joined hundreds of enthusiastic competitors eager to break in the spirits markets, however this has led to a certain amount of ‘massification’/ standardisation in the high- and mid-priced segments and strong gin brands are considered premium despite their price point,” continues Talavera. Notwithstanding


this, the appeal – and consumer interpretation – of ‘premium and super- premium’ gin variants at retail level appears strong. Lagardère Travel Retail’s gin


segment grew by 20% on a like- for-like year-to-date basis to June this year, outpacing its entire white spirits category (+9.6%). “The success of gin has been


amplified with several gin fairs we have implemented in our worldwide shops during spring,” says Catherine Federigo, Head of Beverages, Lagardère Travel Retail. “During our gin fairs we proposed


more than 20 different kinds, some very well known and others very premium. The result is we can observe a premiumisation of the category – brands like Generous Gin, The Botanist and Hendricks have had very good performances.” It was a similar story for Dubai


Duty Free in the first half of the year (January – July), with departures sales of gin growing by 22.3%. “Top gin brands are enjoying


5.85% growth year-to-date [correct as of August – Ed], however we have seen positive movements on small batch or craft gins which are highly sought after,” says Saba Tahir, Senior Vice President – Purchasing, DDF. “We can include from this


segment gins with different flavour profiles apart from juniper. Overall sales of small batch/craft gin grew by 55% this year in value over the same period last year. “There is also appetite from the


consumer to go for more premium gin, which grew by 36% in value this year. At the same time, we have seen a decline of -8.7% in value for the entry-level gins.” Given that some travel locations are ‘still


retail


playing catch-up’ to their domestic counterparts, there remains plenty more business growth to come, says Halewood’s Roffe. “In


terms of


premiumisation there is definitely no tipping point yet and we still see a chance


to replicate the malt whisky business (to a point).” He goes on to ask: “Gin


is gaining ground in terms of its share of category, so why couldn’t a retailer consider turning the ‘gin festival’ in store into a more


permanent category feature such as ‘Craft Gins of the World’?” Be it premium, super-premium,


craft or entry-level, the fanfare around gin isn’t showing any sign of slowing down in travel retail… «


SEPTEMBER 2018


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