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GIN HAS SHAKEN OFF an unfashionable image to become one of the fastest-growing spirit categories in duty free. In 2016, gin grew 5.1%, ahead of scotch, vodka, gin and rum, according to the IWSR. Totalling around 1.27m cases, the gin category is still less than half the size of the duty free vodka sector, but with more craft brands entering the market, and retailers in Asia and the Middle East starting to expand their gin assortments, the outlook is promising.

Global Travel Retail’s attraction for gin producers remains its affluent customer base and high-profile brand marketing potential. “Global travel retail is a key platform for expanding Pernod Ricard’s gin brands in front of 3.1bn travellers a year,” says Pernod Ricard Global Travel Retail brand director Lisa McCann.

“The channel plays an integral role in the growth strategy for the gin category, including Beefeater, which is the world’s most awarded gin brand, and Plymouth, the number four super-premium gin brand in the US.”

She adds: “To stand out and maintain visibility in GTR, we celebrate the superiority, tradition and uniqueness of Pernod Ricard’s gin brands through creative packaging, the launch of inspiring products, promotions and activations in the channel. In addition, PRGTR creates distinct travel retail limited editions that can be collected and coveted among family and friends.”

For Jacob Ehrenkrona, chief executive of Martin Miller’s gin, GTR is the “perfect channel” to promote your brand. “I hear people globally say: ‘Oh, I see so much Martin Miller’s gin nowadays.’ But when you drill down and ask them: ‘Where did you actually see it?’ You are surprised how often they say: ‘Duty free.’”

In January, this year, Martin Miller’s sold a majority 55% stake of the business to Spain’s Zamora Company. The brand’s co-founders, David Bromige, Andreas Versteegh and Ehrenkrona retained a 45% stake.

Ehrenkrona believes the new ownership structure will provide a boost to the company’s travel retail business, which is reasonably strong in the UK, Spain, Iceland and the Channel Islands, but lacks a properly global presence in the sector.

“It gives us a bigger platform globally, particularly in duty free where they have a dedicated team to manage it, which we didn’t before. Now that will enable us to focus more on duty free,” he argues.

Key ambitions for Martin Miller’s in duty free in 2018 and beyond, according to Ehrenkrona, are to gain listings for Westbourne Strength, a high-strength 45.2% abv variant of the brand, and Nine Moons, a bourbon barrel-aged line extension, with leading duty free operators worldwide.

To calibrate gin’s recent rise in duty free, look no further than the testimony of London-based company Quintessential Brands, whose bulging gin portfolio includes the standard London Dry gin Greenall’s, the small-batch craft gin Thomas Dakin, Opihr Oriental Spiced gin, the light, floral Bloom gin and the ultra-premium Berkeley Square.

Says international commercial director William Ovens: “GTR has gone from being virtually nothing at all, just three ferry listings, to potentially our third-largest export market in just three years.” He recalls that listings in Europe with World Duty Free and Gebr Heinemann opened the door to further airport listings with the likes of Lagardère, Aer Rianta International, as well as ferry listings in Scandinavia with Tallink and Viking Line and inflight successes with carriers such as Lufthansa, SAS, Flybe and Easyjet.

Of the four gins, Quintessential currently has on sales in GTR (Greenall’s, Thomas Dakin, Bloom and Opihr), Ovens says it is Ophir which is currently selling best. “Consumers are drawn to it because it stands out. The whole proposition is about adventure, which fits well into travel retail.” He says the brand is even gaining traction in Asia Pacific and is set to go on shelf shortly at Hong Kong airport.

LUXURY POSITIONING

Next month, at selected WDF outlets Quintessential will be relaunching its ultra-premium Berkeley Square ahead of any other distribution channel, priced at about £75 per bottle. “While there have been a lot of great products [in the gin sector], we felt there was an opportunity for a brand with the right credentials in terms of quality, look and feel to own the ultra-premium, luxury positioning. That’s what we are endeavouring to do with Berkeley Square,” Ovens says.

“It really does stand apart from other gin brands,” he adds. “It is actually the first gin brand which is presented in a rigid box more normally associated with aged malts, 18 years-plus. It’s very giftable, and targeted at people who seek the finer things in life. It was voted the best gin in the world and has a unique, slow distillation process and a bouquet garni method of infusion.”

Whereas established brands once dominated the mix, craft gin brands are now a commonplace sight at European airport duty free stores. Caorunn gin was one of the first craft brands to make its presence felt in duty free, making breakthrough listings at key Scottish airports in 2011. Since then the brand’s footprint in the channel has grown rapidly to include Dubai, Delhi, Auckland and Bangkok airports.

Caorunn sales director for GTR, India and the Gulf, James Bateman, says: “The IWSR ranked Caorunn the number three brand for super-premium gin in UK travel retail, and Caorunn is available in more than 20 countries in travel retail outside of the UK,” he adds. “I am very pleased with the growing presence in the Nordic markets, new listings in Thailand, Malaysia, around the Gulf and, to our surprise, in Indian duty free at Delhi and Hyderabad in 2017, where we have maintained the brand’s premium [pricing].”

In July, Caorunn will unveil Caorunn Gin Master’s Cut, a higher-strength travel retail-exclusive variant, bottled at 48% abv rather than the original’s 41.8%, and priced at about £40. “It’s the first planned new expression for the brand and the flavours are amazing,” says Bateman. “[Parent company] International Beverage previewed it at TFWA Cannes in October 2017 and we hope it will be begin to reach travelling consumers in peak season.”

EUROPEAN CRAFT BRANDS

An increasing number of European craft gins are also finding their way into travel retail. A case in point is Bareksten gin, which is made in the Norwegian town of Bergen. The distillery started production in the third quarter of 2016, selling 70,000 bottles last year. Available in 15 markets currently, distribution is set to pass 20 countries in the next few months, according to brand founder Stig Bareksten.

“With regards to travel retail, we are present in Norway, Denmark, Germany, Austria and onboard some cruise lines,” he says. “In Norway, the duty free market is important because of the [domestic] monopoly and taxes on alcohol. Duty free can be a door-opener for new customers because they get more for less and therefore they can be more willing to try new products.”

Estonian firm AS Liviko is also finding success with its Crafter’s gin line, gaining a major listing with Gebr Heinemann in April at Frankfurt, Hamburg and Moscow Sheremetyevo airports in April. Meanwhile, in Scandinavia, the brand is already with Tallink, the largest ferry and cruise line operating in the Baltic, as well as other leading lines such as Viking Lines.

Commenting on Crafter’s rapid progress in Scandinavian travel retail, Liviko export marketing manager Anna-Kai Törs says: “Crafter’s has been available for a relatively short time, but has still gained good feedback in terms of sales. For premium gins, it´s all about inspiring the consumer through the look of the bottle, explaining the contents, ingredients and, if possible, sampling perfect serve cocktails. You need to have good presentation, visibility and professional sampling staff.”

RANGE ADDITIONS

Liviko is also lining up a new Crafter’s line extension called Crafter’s Aromatic Gin, which turns pink in the glass when tonic water is added, for duty free later in 2018. Already at Estonia’s Tallinn airport, the new product, Törs says, will be available onboard Scandinavian ferries in the coming months.

In the UK, Halewood Wines & Spirits has also recorded outstanding results in travel retail, its portfolio boasting Whitley Neill, an African-inspired gin; organic Liverpool gin; Square Mile, produced by the City of London Distillery; and Marylebone, a London Dry inspired by the pleasure gardens of Georgian London and created by Johnny Neill, the founder of Whitley Neill.

Whitley Neill is Halewood’s flagship duty free brand and has expanded by 500% in the channel in the past year, according to managing director Simon Roffe. “The brand is now widely available across the UK and European duty free channels. Key successes include business with Gebr Heinemann, Lagardère UK, Tallink Silja and Aer Rianta, among others.

“Looking forward to summer 2018, the expansion of the brand will continue with new exposure on airlines such as British Airways, Virgin Atlantic, SAS, Thomas Cook, Easyjet, Flybe and more,” he adds. “In addition, Whitley Neill will be launched into Asia Pacific duty free at TFWA Singapore and, in advance of our presence at the Summit of the Americas, we have received the first orders from several US duty free operators to go alongside our established business on the Canadian border.”

Roffe believes the boom in gin in travel retail is being driven by travellers of “all ages and nationalities” looking for something different to what can be found on the high street. “The gin festival concept, craft gin clubs, etc, have encouraged traditional gin buyers to trade up to craft and local gin brands, which bring heritage and a sense of place to the offer.

“In addition, the emergence of flavoured gins, such as our Whitley Neill Rhubarb & Ginger, Quince, Raspberry and Blood Orange gins, has encouraged a much broader group of consumers to venture into the category,” he argues. “Strong evidence from domestic market sales illustrates that younger, often female shoppers are being tempted by the concept of flavoured gin.”

In all the excitement of the craft gin movement, and the undoubted growth of the category in European duty free, it’s worth noting that gin facings in duty free stores in other parts of the world are still small and dominated by a few household names. This state of affairs is set to change though, according to Halewood’s Roffe. “The gin craze which has burst on to the European scene has yet to take off in some other regions, many of which are still dominated by traditional categories. The opportunity for retailers to use the extended range of gin brands to attract new shoppers is one which should not be underestimated.”