A spirited battle

Britons drink more often than anyone else in the world. At the same time, however, as American author Mark Twain put it, they also know that “Water taken in moderation cannot hurt anybody.”

Boasting world-renowned gins and Whiskies, the UK has a rich history of spirits, while vodka, rum, and brandy have broadened the cocktail connoisseurs’ palettes.

Spirit brands have been capitalising on UK’s drinking culture by blending their products to incredibly high standards – focusing on provenance, production methods, innovation and sustainability to win over customers.

The UK spirit industry’s sales volume no tops £5.1 billion, and about 6.8 million hectolitres of spirits were produced in around 804 enterprises for domestic consumption and exporting globally.

Independents continue to play a crucial role in augmenting the growth of the industry, but faced severe sales heat during Brexit and Covid-19 periods. In a changing retail climate, where mushrooming of online delivery platforms is the norm, independents have to think carefully to stay ahead of the pack.

May will bring warmer evenings and the retailers must stock up necessary ammunition that would give spirit to customers.

“At-home consumption continues to be strong and Big Night In is a key drinking occasion for retailers to tap into – whether for in the home or in the garden as the warmer evenings bring people together,” says Tim Dunlop, brand director of Hammonds.

Ready-to-drink spirits

Ready-to-drink alcoholic beverages (ARTD or RTD) is one of the fastest growing categories in the UK market. The global canned alcoholic beverages market size was valued at $9.20 billion in 2021. It is projected to reach $45.72 billion by 2030, growing at a CAGR of 19.5 per cent during the forecast period (2022–2030).

Dunlop’s Hammonds has just rolled out the American favourite cocktails range BuzzBallz in the UK market. Six SKUs are available to retailers via exclusive distributor, Hammonds of Knutsford: Choc Tease, Tequila ’Rita, Strawberry ’Rita, Lotta Colada, Chili Mango and Espresso Martini.  All 200ml balls are 13.5 per cent ABV with an RRP of £3.85 each.

“We have a huge focus on the independent and convenience sector,” he says. “We have invested in a heavyweight trade marketing, advertising, social and PR campaign designed to drive wide awareness of the range and the opportunities for retailers and store managers. Activity will focus on how BuzzBallz Cocktails is carving a new position in the category with its higher abv ‘bar-strength’ premixed cocktails in a single-serve format – perfect for the convenience channel and impulse nature of shopping occasions.”

BuzzBallz will go head to head with brands from the house of spirit behemoths like Diageo, The SHS Group, Pernod Ricard, CEDC International and Bacardi. Diageo alone accounted for the largest UK spirits market share by volume in 2021.

Meanwhile, The Cocktail Co’s RTD cocktails comprises: Bramble, Cosmopolitan, Espresso Martini, Mojito, Passionfruit Martini, and The Zombie, adding to the colourful consumer options.

“When we founded The Cocktail Co, our mission was to offer something a little different – bar-quality drinks, in a bottle, with absolutely no compromise on taste or quality – and that’s exactly what we’ve managed to achieve,” said Abby Matthews, director of The Cocktail Co.

“But not only is this a really exciting time for us as a brand, it’s also an exciting time for the RTD sector in general – predictions are that the category will increase by 11 per cent this year alone, and 24 per cent over the next five years.”

While urban stores maybe more suited for shoppers who want to buy items in the go, whether for a dinner that evening or perhaps a drink for the train that night. Rural and small-town stores must work hard to meet the needs of their local demographic in a more contemporary and holistic way.

“Especially as we enter the warmer, summer months, sales of RTD cocktails are only going to increase, as they lend themselves perfectly to out-of-home occasions such as picnics, parties, festivals, and at-home gatherings with friends and family, as well as offering the perfect convenient purchase for customers when the sun shines and a fruity cocktail becomes ever more appealing,” agrees Mathews.

Convenience store managers have a tough job when it comes to fitting everything in, but luckily there is a lot of support now a days. Particularly when it comes to merchandising and ranging.

“Extensive branded POS materials are available to support the UK independent retail sector. To enhance in-store theatre and purchase appeal, we can supply retailers with bright, branded POS, including free-standing display units, wall-mounted fixtures, counter and chiller racks, eye-catching signage and shelf talkers to really bring the wow factor,” informs Dunlop of Hammonds.

The gin lists

The UK is touted as the most competitive gin market in the world. The segment globally garnered $4 billion in 2023, and in global comparison, the UK market contributed the lion’s share. The segment is projected to grow by 11.4 per cent during 2023–2027 period, resulting in a market volume of $6.16 billion by 2027.

“Due to the post pandemic change in the drinking habits, the UK gin market went down six per cent in 2022, but is expected to grow by 38 per cent over the next five years as the on- and off-trade stabilise and consumers move away from online shopping,” said Paul Sullivan, Managing Director of 6 O’Clock Gin.

“We have developed a range of flavours, as it is important to offer consumers a choice and an alternative to the ubiquitous brands from the major spirits players. Flavoured gins have shown good growth over the last few years, but the palate is moving away from sickly sweet to a drier style.”

Sullivan’s 6 O’Clock Gin’s packaging, especially the Blue London Dry bottle, is easily recognisable with high shelf shout. “We have had recent success with the cans in convenience formats in Budgens and Co-op. Customers who wish to trade directly with us can be supported with free-standing display units and point of sale,” he adds.

Further intensifying the competition, The Real English Drinks Distillery launched London Dry Gin gift set as well as a Honey and Thyme gift box to celebrate the coronation of King Charles III.

King Charles’ drink of choice is apparently a 50/50 martini made with half gin and half dry vermouth. The company claimed their Jubilee Gin, which was introduced in 2022, was an instant hit among shoppers.

Similarly, Whitley Neill introduced a limited-edition bottle of its Connoisseur’s Cut London Dry Gin to commemorate the Coronation. “With an extra Bank Holiday and a weekend full of celebrations, the Coronation will present a huge sales opportunity for retailers and licensees this May,” said Rachel Adams, global marketing director at Halewood Artisanal Spirits.

“With its rich London heritage and quality London Dry gin distilling credentials, Whitley Neill is perfectly positioned to help maximise this opportunity with the launch of this striking Limited Edition Coronation Gin offering,” she added.

Meanwhile, Pernod Ricard’s Plymouth Gin introduced its “Ocean Edition” bottle, created in partnership the Ocean Conservation Trust. For every one of these brand new, limited-edition bottles sold (RRP £26), Plymouth Gin will donate £1.

When Gin brands are vying hard for a market share, Diageo-owned Tanqueray was the third best-selling gin in the on trade in 2022 in Europe, achieving 141.9 per cent growth in value and a 139.7 per cent increase in sales.

Tanqueray was pipped to the top spots by Gordon’s Pink Gin and Gordon’s original flavour, according to the Drinks List 2023, compiled by NielsenIQ and The Morning Advertiser.

Independent retailers must also stock some real high-end spirits for someone who wants to purchase it as a gift, or take it to someone’s house for dinner as the season heralds. When consumers drink less, they may look for quality products.

Whisky rules

The UK Whisky market is valued at $2.44 billion in 2023 and is poised to grow annually by 5.86 per cent until2027. More distilleries are blending differentiated products, adding new refreshing flavours and textures into their age-old favourites to enhance the taste, attracting more and younger customers.

Malt whisky brand Jura introduced a new addition to its Cask Edition Series dubbed Jura Pale Ale Cask Edition. The brands target audience is beer lovers looking to get into whisky and whisky fans looking to try something a little different.

“The Jura Pale Ale Cask Edition joins three others in the Cask Editions Series – Jura Winter Edition, Jura Red Wine Cask Edition and Jura Rum Cask Finish. It has an RRP of £35 and comes in 70cl format,” according to the company.

Another major player Stoli Group joined the bandwagon releasing its latest collaboration – the Kentucky Owl Takumi Edition Bourbon Whiskey – in the UK. This is the second limited-edition release from Kentucky Owl, showcasing the brand’s innovative approach to traditional bourbon.

The Amber Beverage Group distributes Kentucky Owl and has introduced the Takumi Edition to premium on-trade and off-trade accounts.

Similarly, Pernod Ricard’s Jameson Irish Whiskey rolled out Jameson Connects, a new immersive digital platform, that allows consumers to get more from their bottle and get closer to the brand.

“Using a Quick Response (QR) code on the neck of the bottle, Jameson fans can gain access to unique events, exclusive experiences and persuasive content, helping them to “Join In. Enjoy More” and ultimately “Widen the Circle,” says Leanne Banks, marketing director at Pernod Ricard UK.

According to the company, Jameson has been performing ahead of Total Whisky in the Off-Trade (+2.7 per cent value growth vs. 0.2 per cent for the category over the last 12 weeks) and is leading the growth of Irish Whiskey in the UK.

Glenglassaugh, a Scotch distillery owned by Jack Daniel’s parent company Brown-Forman, has introduced a single malt whisky that was aged for nearly half a century in the warehouses of this bucolic distillery located on the rugged coast of north-eastern Scotland.

Scotch Whisky exports were worth £6.2 billion in 2022, and the industry provides £5.5 billion in gross value added (GVA) to the UK economy (2018), according to Scotch Whisky Association’s (SWA) website.

Meanwhile, SWA is urging the UK government to uphold the pledge made in 2019 to “ensure the tax system is supporting Scottish whisky” as a rise in duty looms. The trade body has launched the ‘Keep the Commitment’ campaign to press the UK government to rethink the decision to increase duty on Scotch whisky and other spirits by 10.1 per cent from August.

Vodka mania

Revenue in the Vodka segment amounts to $4.32 billion in 2023, and the market is expected to grow annually by 9.48 per cent (CAGR 2023–2027).

Leading Vodka brands based on the number of consumers are Smirnoff Red Label, followed by Absolut and Russian Standard Vodka, according to Statista.

Other leading brands like Moskovskaya, Glen’s and JJ Whitley Vodka have launched new offerings for the season.

Moskovskaya Vodka launched a sustainable ‘Green’ Limited Edition which will fund an environmental project to plant trees. Amber Beverage Group (ABG), the company behind the Moskovskaya Vodka brand, says they will be releasing 120,000 bottles of the special edition.

“This collaboration marks the first step towards ABG’s goal of implementing a complete group-wide Sustainability Policy for all of its companies and core brands by the end of the year,” says Pepijn Janssens, chief marketing officer of Amber Beverage Group.

Similarly, Glen’s Vodka launched a new on-pack promotion inspired by the Scottish Professional Football League (SPFL). The “Sub in to Win” promotion gives consumers the chance to put their football skills to the test to win big, from weekly cash prizes to exclusive Glen’s merchandise.

The market-inspired special label design on Glen’s Original Vodka and Glen’s Platinum 1-litre bottles will be available across all UK stockists, including Tesco, Sainsbury’s, Morrisons and Asda, as well as throughout the convenience sector. The limited-edition bottles are set to be on the shelves until June, according to the company.

Halewood Artisanal Spirits launched a new variant for its JJ Whitley Vodka range – Lemon Citron. JJ Whitley Lemon Citron is available for all channels to order now. It is a deliciously fresh addition to the line-up, which adds a zesty twist to cocktails and simple mixers. As with all products in the JJ Whitley range, it is distilled in the UK.

“We know that citrus flavours rank highly amongst consumer preference within the spirits category, and lemon flavours work particularly well with our smooth JJ Whitley Vodka so we’re confident that this will be a popular choice as we approach the spring months,” says Rachel Adams, global marketing manager, Halewood Artisanal Spirits.

New JJ Whitley Lemon Citron is available for all channels to order now. It is currently available on the Drop Store, RRP £17.

King rum

According to IWSR, out of the top 10 rum markets globally, the UK is forecast as having the highest CAGR to 2021 with 4.8 per cent growth, taking the total value of the rum category to £1.17 billion.

Captain Morgan introduced Captain Morgan Strawberry Daiquiri pre-mix 250 ml cans to its ready-to-drink portfolio, available now across the wholesale and convenience channels, in both PMPs and plain packs.

The launch of Captain Morgan Strawberry Daiquiri follows shortly after the brand introduced a new pack design, rolled out globally in March across both the on- and off-trade. Its bright red pack guarantees stand out shelf appeal, featuring nods to the pre-mix flavour profile.

“We know that shoppers are continuing to look for new, convenient ways to enjoy the liquids they know and love,” says Lizzy True, Captain Morgan marketing manager, Diageo. “The ready-to-drink category provides a fantastic opportunity for iconic brands, such as Captain Morgan, to replicate serves that are popular in the on-trade, and package them into convenient formats so the delicious drinks can be enjoyed during a range of occasions.”

Captain Morgan Strawberry Daiquiri pre-mix cans are available now across the wholesale and convenience channels.

Tequila toasts

KAH Tequila, the 100 per cent agave tequila brand owned by Amber Beverage Group, is now the UK’s No.1 Ultra-Premium Tequila by value and volume, outperforming Patron Silver, new data shows.

“KAH is an eye-catching as well as delicious, authentic tequila brand,” says Tina Connolly, senior brand manager for Amber Beverage UK. “Whilst of course tequila is not new, the move towards hand-crafted, authentic, sipping tequilas has attracted what is in effect a new wave of tequila lovers, whether they are new to the drink or whether they are revising outdated views based on drinking poor mixtos in their youth.”

The company is predicting a strong brand growth trajectory during the rest of 2023, anticipating that volume will be doubled this year. A new expression is planned for introduction into the UK later in the year.

Amber Beverage Group (ABG) is to preview its first Mezcal spirit in the Rooster Rojo range. Described as ‘the real soul of Mexico’, the new ultra-premium spirit will be unveiled at ProWein giving delegates the first opportunity to view and to sample this extraordinary new drink. The new product will be available in Europe from the early Summer and so ProWein provides an opportunity for delegates to be the first to taste this Mezcal.

“The project has been in progress for a long time already due to its complexity as Mezcal is subject to different regulations through different government controlling bodies in Mexico,” adds Mantas Zlatkus, Global Brand Director for Rooster Rojo Tequila.

So, three cheers for the season!