ONLY 10 YEARS AGO what is now happening in the global gin market would have been unimaginable. With or without a crystal ball it would have taken a brave analyst to say that, come the end of the noughties adjectives such as ‘dynamic’ and ‘robust’ would be used to describe gin’s state of play – but that is the happy reality. It is a category that is quite literally throbbing with activity.

Largely eclipsed by vodka in the 80s and 90s, it has come back with a vengeance and, more importantly, on a premium and super-premium footing. So what are the reasons for this turnaround? The easy answer is that it’s the growing interest in and resurgence of the cocktail – but that’s by no means all.

In the past five years there has been a spate of activity in the super-premium sector, and this has not only dragged the category up by its bootstraps but inspired the trade and attracted the consumer, who these days is increasingly sophisticated. The catalyst to this turnaround was William Grant’s launch of Hendrick’s, a small-batch gin boasting the quirky combination of cucumber and rose petals in its botanical mix, and supported by ever quirkier PR and marketing campaigns.

Its success attracted others into the fray, crucially the multinationals – a sure sign that there’s money in them gin stills. Diageo had already introduced Tanqueray 10 and Pernod Ricard unveiled Beefeater 24 in late 2008, both super-premiums to their already established premium brands Tanqueray and Beefeater.

“Over the past two years the gin market has changed,” says Chivas Brothers international director of gins Paco Recuero. “There are now three distinct sectors – the standard, which is not evolving, premium and the super-premium, which is showing plenty of excitement as more and more brands are coming on to the market.”

With its trio – the premium mainstay and world’s number one exported gin Beefeater, according to Pernod Ricard, along with Beefeater 24 and Plymouth – the company boasts major contenders positioned at the most dynamic edge of the market. To really capitalise on the current upswing the company recently relaunched Plymouth – one of the two AOC gins in the world, in that it can only be produced at its distillery in Plymouth.

“This was not simply a repackaging exercise, we also wanted to underline the heritage of the brand,” says Recuero “We are very excited about the new look and it’s been very well received particularly by bartenders around the world, which is good because the brand is also highly regarded.”

Indeed the new look, which not only underlines its heritage but also the fact that Plymouth is an artisanal gin, has won universal praise and is currently available in the UK, Spain and is being rolled out in the US – with France and Australia destined to come on stream this year.

Chivas is also taking the opportunity to increase Plymouth’s price in line with its more artisanal positioning. In the UK it will move from around £17/£18 to between £20 and £25 and globally it will go up in the region of 40%. There can be little doubt that this was in response to the growing number of artisanal gins coming into the mix – perhaps most notably the likes of Sipsmith from Chiswick, London, and the Scottish gin Caorunn – both-small batch gins and both making the most of their respective botanical mixes.

The fact that within two years of its UK debut Caorunn became the number three super-premium in the market clearly underlines the potency of these brands. “We had successful launches on key gin markets in the US and Spain, where gin experts highly appreciated Caorunn and there was a great reaction to its USP, taste and perfect serve,” says Interbev’s brand manager for Caorunn Iby Bakos.

Super-premium assault

Of course, along with the UK, the US and Spain are the traditional gin hubs in the world and in all three markets it is clear that the super-premium sector is on the move.

Latest IWSR figures up to 2010 confirm that in the US back in 2001 it amounted to 69,500 cases and by close of play nine years on it had breached the 189,000 cases mark. Similarly in the UK where super-premiums were later off the mark it was just 6,000 in 2005 (entirely attributed to Hendrick’s) but by 2010 the tally was 46,550 cases – almost an eight-fold growth. In Spain, using the same comparison, it was 3,500 (2005) and ended at just over 80,000 cases – an even higher growth.

These figures are, of course, small beer in vodka terms, but these super-premiums are the ‘single malts’ of the gin category and, because there are no ageing constraints, it’s an extremely lucrative business. Furthermore, it is extraordinary how quickly the super-premiums have taken hold. In the US they now account for almost 27% of the total gin action and, with the ongoing decline of the standard sector, it has to be said that some of the growth has been at the expense of the premium gins. However, in the UK and Spain super-premiums have hit the standard category.

In all three strongholds Hendrick’s dominates the scene, indeed the brand has 50% of this highly lucrative gin action and is testament to the rewards of consistent marketing which, coupled with its burlesque-style PR campaigns, has clearly struck a chord with both trade and consumer.

“Our main challenge now is to keep Hendrick’s special – it’s a small-batch gin and we have to ensure supply meets demand and stay true to our roots, so we will be increasing activity,” says William Grant brand manager for Hendrick’s Deirdre Clarke.

A decade or so ago, the UK, US and Spain were really the only markets worth going for on the gin front. But today it’s a different story – gin is on the move and Asia, along with other ports of call in Europe and Russia, is now within its scope, as is South America, where Hendrick’s is “going from strength to strength” in Colombia. “It’s really in the past 18 months that these green shoots have started to show in markets traditionally associated with vodka,” says Clarke.

With its accents of rare Japanese sencha tea and Chinese green tea Beefeater 24 is the ideal candidate for China and Chivas is spreading the word through upmarket tea salons. “While G&T is most known in Spain and the UK, in emerging markets there’s a good opportunity to play with different cocktails and mixers – many times we’ve tried new things in Spain but we always come back to the G&T,” says Recuero. “The blend of Japanese and Chinese teas in its botanicals is a key USP.”

Education is the fundamental in these newer markets where there are no preconceptions when it comes to gin – and where, in the main as a white spirit, it is up against locally produced drinks – the likes of baiju in China, shochu in Japan and soju in Korea. To further aid and abet consumption the company has also launched a comprehensive cocktail website for its gin trio, ginandtales.com, which interacts between the trade and the consumer.

The big three

On the whole, though, it’s the big three markets which remain the prime hunting grounds for the new kids on the block – and Bulldog Gin, along with Berry Brothers & Rudd Spirits’ No 3 are cases in point. As the name suggests Bulldog is produced in England – London, to be precise – and made its Stateside debut five years ago, moving into Spain and on to the international stage a year later. “In the US we were up 50% last year and will be up 100% this year all within our existing distribution territory in the northeast,” says owner Anshuman Vohra. “We are now the number three gin in Spain (north of e20 a bottle retail) and that’s just in three years. Overall we are considered the fastest-growing super-premium gin in the world.”

Interestingly, Vohra maintains that Spain, which is showing “incredible growth” will continue to “lead the charge with US and UK following along, thanks to the mixology trend, vodka fatigue and the innovative gin offerings” that abound. However, Bulldog is destined to go further afield too. “We have received a lot of interest from Latin America and from parts of south east Asia – my sense is that, as other parts of the world continue to develop and populations grow wealthier, they will continue to demand premium offerings that are in vogue from western countries.”

BBR Spirits’ No 3 has also taken to the top three strongholds – but, only in its second year, is already available in 20 countries, including Canada through the Liquor Control Board of Ontario, Japan, Australia, Russia, Germany, Portugal and Turkey.

No 3 is a traditional gin, which majors on juniper and was created as the spirit for gin’s classic cocktails, notably the Martini and the Negroni. “No 3 continues to grow through our partnership with Maxxium in the Spanish on-trade with the major bartenders of Barcelona and Madrid adopting it as a staple brand,” says the company’s marketing director, Luke Tegner. “The UK is steady and strong and, following its recent launch with Anchor Distilling, the US is beginning to motor.”

Cornerstone of growth

As previously mentioned, cocktails are a cornerstone in gin’s growing prominence, as the spirit offers, thanks to its botanical mix, a much broader panoply of taste than its vodka counterpart. Furthermore, with the number of gins on the market bartenders can pick and mix depending on the cocktail. “Bartenders are pushing gin over the bar,” says Hendrick’s Clarke. “This is making all the difference and attracting new consumers to the spirit.”

It has to be said too that producers are mounting some serious and on-going marketing efforts. For starters, in the UK Bulldog is fronting its Tales of the Cocktail Bartender Challenge,  while InterBev is mounting its first global cocktail competition under the banner Caorunn Storytellers. As Bakos explains: “Bartenders are natural storytellers and we encourage them to create a classic drink with a modern twist and tell us their story behind the drink. Being an up-and-coming brand, an innovative approach is a must to stand out.”

This month the company plans to “shake summer” with a selection of Caorunn G&Ts with variations of the perfect serve which will focus on some classic flavours, such as Angostura and bitter lemon. The aim is “to introduce some really unexpected, cutting edge combinations”. 

Clearly it’s all systems go in the heady ferment of the super-premium gin sector – and it’s much the same for the premiums. While Hendrick’s is credited with pioneering the upper echelons of the category – Bombay Sapphire, then in the IDV camp and now owned by Bacardi,  started the ball rolling for the premium gins and, much like Hendrick’s, it heads the sector.

“Bombay Sapphire remains the world’s number one premium gin by value for a third consecutive year,” says Joanna Botwood, Bombay Sapphire’s global marketing manager. “The popularity of Bombay continues to grow, nearly tripling in size since it was acquired by family-owned Bacardi.”

In its iconic blue stylish bottle, design has always taken centre stage when it comes to promotional support, but aside from the look of the bottle it was Bombay Sapphire which single handedly drew the world’s attention to the botanical mix, and the difference in taste that the final choice brings to the table. 

Juniper challenged

Up until the advent of Bombay the gin scene was dominated by very juniper-noted and tasting gins, the likes of Gordon’s and Tanqueray spring to mind, but here too Bombay was different, majoring as it did – and does – on coriander. This, along with its innovative production method using the Carterhead still, resulted in a much more subtle and fragrant-tasting gin. 

Bombay debuted in the US back in 1986 and, more than 20 years on, Bacardi is reasserting the importance of botanicals in gin, not only in its flagship but gin per se, via the launch of the Gin Aroma Kit. Dubbed Your Route to Expertise in Gin, the ‘kit’ comprises 24 aromas, packed in miniature bottles, that are associated with the spirit, including four juniper types, pine note; green note; herbaceous, waxy and woody resinous. 

All important stuff and launched late last year, it was a precursor to the Bombay Sapphire Infused With Imagination brand communication campaign, as Bacardi reinforces the brand’s history, from its taste to “innovative production process of Vapour Infusion to the launch  its blue bottle”.

“We have an exciting year coming for the brand. Infused With Imagination marks an exciting stage of the brand’s journey and a truly imaginative way of looking at our brand communications,” says Botwood. 

To be a gin. of course, juniper is a must – but then, as Bombay demonstrated, the world is your botanical oyster, and so it has proved. It’s these very botanicals and the different tastes they lend to gin which in turn have given producers a USP that cannot be matched by vodka – it’s all in the taste and that is what is so endlessly fascinating for bartenders and consumers alike, for no two gins taste the same.

For some there may be too many gins coming on to the market – but for others it all adds to the potpourri and overall to the interest of both trade and consumer. For some, too, it’s reminiscent of the explosion of vodka five to 10 years ago – but that said gin with its botanical alchemy has a lot more going for it.