Long treated as an undervalued, but essential, component of countless cocktails, vermouth is experiencing a welcome period of reappraisal. Joe Bates reports.
Vermouth is stepping into the spotlight. The fortified wine’s Mediterranean origins as a light aperitif are being rediscovered and championed by consumers in markets far and wide as the aperitif occasion and low-alcohol spritz-style serves gain ground. New brands are springing up in some unlikely places and there’s genuine excitement around the category, something unthinkable a decade ago.
In 2021, the 18m-case category grew 5% on the back of the reopening of the on-premise after COVID-19 restrictions, according to IWSR Drinks Market Analysis. The challenge it faces now is how to build on this promising foundation. The premiumisation trend, which underpinned much of vermouth’s growth, remains skewed toward upscale bars and restaurants. Key to the segment’s future will be whether the trend spreads to the mass market on-premise where, all too often, lower-quality vermouths are served to consumers after being incorrectly stored.
Bacardi's Martini Vermouth remains the category’s dominant leader, notching up sales of around 9.7m cases in 2021, an increase of over 13% on 2020, according to Euromonitor. This most mature of brands has maintained an impressive level of NPD in recent times, releasing three RTD extensions last year: the 4.7% ABV Martini Fiero & Tonic, along with the 0% ABV Martini Vibrante & Tonic and Floreale & Tonic.
Martini has also been burnishing its sustainability credentials of late. Earlier this year, Bacardi announced that 100% of the wineries in the Martini portfolio, including its vermouth, sparkling wine and RTD lines, are now sustainably certified according to a standard set by Equalitas, the most comprehensive sustainability standard in Italian winemaking.
The pandemic has certainly taken a toll, but vermouth producers report 2022 is turning out to be a year of recovery despite the challenges posed by the supply chain crisis. “We were able to keep sales at the same level during restrictions,” recalls Pierre-Olivier Rousseaux, president of French vermouth brand Dolin. “People had time to make cocktails at home and were happy to discover classic cocktails.”
According to Rousseaux, Dolin will be able to keep sales steady this year, with all markets recovering except for China. One potential obstacle is the dwindling supply of glass bottles, which he calls a “real issue”.
Encouragingly, the DIY cocktail-making trend ignited during lockdowns has continued into 2022, benefiting the online sales of many vermouth brands. “D2C (direct-to-consumer) and e-commerce have been key - not only due to the pandemic, but also to showcase our unique offerings with value-added packs,” confirms Alex Virgili, co-founder of Spanish brand El Bandarra, which enjoys distribution in 15 countries worldwide. “Currently, our D2C represents up to 10% of our overall sales and is growing.”
Category growth attracts new entrants and innovation
It’s a sign of the upward trajectory of vermouth currently that brand owners are moving eagerly into the category. One example is French liqueur producer Cartron, now owned by Groupe Bernard Hayot’s Spiribam spirits arm, which launched two new vermouths in 2020, each made from a Burgundy wine base. Le Vermouth Rouge Joseph Cartron and Le Vermouth Blanc Joseph Cartron are made with a base of Pinot Noir and Chardonnay wines, respectively.
Launched during the height of the pandemic, Cartron Vermouth is now available in 12 markets worldwide and the company has ambitions to grow further. “We put a strong focus on tasting," says global brand manager Justine Clavel. "e strongly believe that tasting is the key to convincing and seducing bartenders. We also want to emphasise and promote the great potential for cocktails that our vermouths offer.”
Spain's Zamora Co, best known for its Licor 43 herbal liqueur, has also branched out into vermouth; its Italian subsidiary Villa Massa launched Giardino Vermouth in late 2021. Named after the Italian word for ‘garden’, the range comprises the sweet Vermouth Giardino Tradizionale (16% ABV), comprising a blend of bay leaves, coriander and gentian botanicals from the Italian Alps, and Vermouth Giardino Mediterranean Dry (18% ABV), made from Sorrento PGI lemon peel, wormwood, ginger and juniper.
“At the moment, we're concentrating on building our distribution,” explains global marketing & innovation director Julian Fernandez. “As a super-premium range, it's important that we target the right venues and partners. Our products have been well received, and bartenders are really taking to the product and its versatility."
Established brands capitalising on premiumisation
While brand owners are moving into vermouth, established suppliers are premiumising their existing ranges. Perlino Vermouth, which is produced by Dilmoor-Perlino, an Italian subsidiary of France’s La Martiniquaise Group, recently introduced a premium Vermouth di Torino Rosso Corsieri del Palio expression, which takes its name from Asti’s annual Il Palio horse race, the oldest in Italy.
“While Casa Martelletti is well renowned and has been enjoying solid growth, the mixer staff are now busy rolling out the new Corsieri del Palio," said Elena Branda, a spokesperson for Perlino’s export & marketing department. "For this purpose, we have assigned the famous mixologist Fabio Camboni to make a cocktail book featuring five extraordinary [vermouth-based] cocktails."
Creating standout with a focus on mixology and ageing
As the range of premium vermouths expands, brands are having to up their game to stand out from the crowd. While established names can fall back on reputations built up over decades, newer entrants have to offer something different. Azaline, a French vermouth launched last year by drinks entrepreneur Steve Drawbell and made using Pinot Noir grapes grown in Burgundy, pitches itself as something different for bartenders and mixologists.
“Red vermouth cocktails are experiencing a renaissance, with the Negroni now the world’s favourite cocktail and no fewer than nine red vermouth cocktails in the top 50,” Drawbell tells Global Drinks Intel. “Bartenders want options, and while traditional red vermouths are all sweet and syrupy, Azaline is relatively dry, creating a lighter style of cocktail. The saffron brings both an exotic flavour and the ability to enrich the other flavours around it, creating cocktails with greater depth of flavour.
Drawbell says the US has stood out as a top-performing export market for the brand this year. “We have been taken on by Southern Glazer’s Wines & Spirits this year, enabling us to launch in 12 states,” he reveals. “Progress in both the UK and Germany was slowed last year by COVID-related issues, but the situation improved at the start of 2022 and we've made great progress gaining listings with wholesalers and key on-trade accounts.”
Meanwhile, Hotel Starlino Rosso Vermouth, part of the wider Hotel Starlino Aperitivo range owned by UK-based firm Biggar & Leith but produced in Turin, sits apart from its competitors by having been aged in Bourbon barrels. “We have a distinct point of difference [with our ageing process]," says Founder & CEO Elwyn Gladstone. "We've had some great success in Australia, Canada and the US.
“We very much focus on the classics like the Manhattan and the Negroni,” he adds. “We've also done some great collaborations with Rabbit Hole Bourbon, which made a whiskey aged in our Starlino Vermouth barrels. So, the barrels start in Kentucky with whiskey in them; then we ship them to Italy and fill them with vermouth. Finally, we ship them back to Kentucky and they fill them with whiskey!”
Emergence of mixologist-created expressions aimed at the on-premise
Bartender-created vermouths are also an emerging trend worth highlighting. Two years ago, former bartender Cory Fitzsimmons launched Method Spirits Sweet Vermouth in the US, after two years of recipe development, partnering with the Finger Lakes-based Swedish Hill Winery and New York State-based Finger Lakes Distilling on production. A dry vermouth is planned for later this year and amari, liqueurs and cordials will follow in 2023.
“When we got into sales, most on-premise accounts were running at a fraction of capacity because of shutdowns and restrictions,” recalls Fitzsimmons. “So, we started by knocking on doors of off-premise wine and liquor stores. Usually, brands work the other way, getting a footing in bars and restaurants to show demand and then convincing shop owners to carry their product, but we found great reception with off-premise owners. We’re currently in over 300 accounts across the state of New York and pretty evenly split between the on- and off-premise.”
Back in Europe, mixologist Giuseppe Gallo decided to launch his own vermouth, Savoia Americano Rosso, last year. “He took inspiration for Savoia Americano from a historic recipe for Bitter di Milano in the book Il Liquorista Pratico 1897 and added a few modern twists to create a vino aperitivo with an amaro dolce flavour profile,” explains Ilaria Pellegrini, global brand manager at Gallo's Ital Spirits.
Savoia is already available in about ten markets in Europe, including the UK, Italy, France and Spain, and has recently been presented in the US. “The main focus for the year to come is the expansion in the US market,” reveals Pellegrini. “Other target markets for the near future are Germany and Australia, but the ambition is for Savoia Americano to become a truly global brand for a new generation of discerning drinkers who ... are looking for authentic and natural ingredients.”
At the top end, the vermouth category is clearly experiencing a welcome revival of its fortunes. As the on-premise continues to recover from the pandemic, it will be fascinating to see if this trend can trickle down into the mass market.
This article was initially published in the September issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
