This article was initially published in the June issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
With successful independent gin brands being snapped up by larger players left, right and centre, those left standing are calling for clarity on what exactly ‘craft’ means.
Craft has been a buzzword in alcohol for some time now, luring in consumers with the promise that the use of the term ensures the end product is skillfully and lovingly handmade in a bespoke shed by a tiny team of dedicated workers.
But, the word ‘craft’ has more than one definition – it also means a skill used in deceiving others, which puts a different slant on things and makes it a somewhat nebulous entity.
When it comes to spirits and beer, of course, it’s the former definition that is the preferred outcome, and consumers have flocked to embrace brands that feature the word. In reality, however, there is no designated regulation around craft products, and the lack of such means the idea is open to interpretation.
Craft gin is a sector that has been growing exponentially in recent years, with abundant small producers globally dipping their toes into an area that has seen some profit greatly from the success of their independent brands, while bigger players have noticed the potential and bought them out.
Pernod Ricard and Diageo have both swept up some of the more successful independents, such as Monkey 47, Malfy, Aviation, Chase and Não, and this has done nothing to dampen the brands’ popularity among consumers. Indeed, having the backing of a major multinational delimits production and, more importantly, distribution.
But, how can those who remain intent on staying independent survive and thrive in an increasingly tough and oversaturated environment?
Distillers call for clearer definition
Martin Miller’s, created in 1999, lays claim to being “the world’s first super-premium gin”. Although Zamora Co purchased a majority stake in the brand in 2018, Martin Miller’s claims to have retained its independence, and global brand manager Arturo Illán says becoming part of the Spanish group’s portfolio gave Martin Miller’s “agility, flexibility and ownership of our own destiny”.
Distilled using pot maceration in England, the concentrated distillate is then shipped to Iceland to be blended with spring water and bottled. The brand continues to grow, surpassing the 100,000 8.4-litre-case mark in 2022. Notably, it doesn’t feature the word ‘craft’ on its labels.
Illán believes “it is necessary to set official and agreed regulations on what producers intend to communicate when including the word ‘craft’ in their product descriptors and what consumers understand”.
He continues: “There will be no surprise how blurred the lines are on its meaning on both sides. From my point of view, there are two main aspects that should limit craft definition and it’s all about quantity: how much handwork is involved in the process – there should be considerable human effort or direct human hands involved in the process rather than industry machines – and how many bottles are produced per batch and per year. The quantity of each … I’m not daring enough to point a number.”
Illán is not alone in his assessment. British-born, US-based celebrity chef Robert Irvine launched his eponymous spirits company last year and for him, being craft is all about the way the gin is created and produced. “The word ‘craft’ has been diluted, because there isn’t a firm, legal definition that guides its application,” he says. “It’s meant to convey a sense of specialness, that it was made by a small number of people in a careful, measured way. I can’t speak for anyone else, but we absolutely fit that bill.
“With my background and experience as a chef, I personally selected the 13 botanicals that we used to create the flavour profile for Irvine’s Gin. I also own the distillery in Pennsylvania where we produce Irvine’s Spirits. So, by carefully curating the recipe and controlling every aspect of production, I can say without any doubt that Irvine’s Gin is truly an authentic craft brand.”
Irvine’s premise was for his gin to be “chef-curated”, to be specifically designed to pair with food.
“I understand there must be some celebrity brand fatigue, but I’m in the category because I should be,” says Irvine. “Of all the celebrity brands, who owns their own distillery? Or developed the recipe? Or has the culinary training to offer recipe pairings? The people who can answer yes to all of those questions – well, that’s a very small, elite category, isn’t it?
“I don’t really do licensing deals. If it’s got my name on it, it’s because I’m all in. I’m also proud that proceeds from Irvine’s Gin and Irvine’s Vodka – and all of my businesses – benefit The Robert Irvine Foundation, which helps support military members, veterans and first responders and their families.”
So Irvine has a solid USP that brings some standout in an increasingly crowded marketplace that is seeing general retail pushback and an inevitable fatigue creeping in among consumers constantly bombarded by new releases.
‘Remaining an independent, artisan distillery gives us full control’
Those craft brands that are already established, however, have found they can continue to trade on their independent credentials. In the UK, for example, Silent Pool, co-founded by Ian McCulloch and James Shelbourne in 2014, saw its Q1 sales leap by 34%, “driven majorly by the unprecedented demand for our limited-edition Coronation Expression Gin”.
McCulloch says: “Silent Pool has trusted partnerships with distributors in 48 countries, with a roll-out plan that adds more every year. Most recently, we launched in Greece and Australia. Italy, Japan and the US are probably our strongest markets, and all are showing significant growth.”
He highlights the benefits of independence: “Our distillation process is unique to us and remaining an independent, artisan distillery means we can ensure full control and uncompromising quality of our product from start to finish. It also means we’re able to respond to market activity and seasonal events in an agile manner.
“The other exciting part is that we can experiment and produce limited-edition expressions alongside our core range, such as our recently-launched, ultra-premium Black Juniper Gin, with more ease. We continue to thrive, because we stay true to our essence, our focus on craftsmanship.”
Moving beyond traditional dry styles in search for new markets
In Ireland, at Cork-based Blood Monkey, launched in 2020 by Outcast Brands, co-founder Jason Kidd’s emphasis is on “identifying new opportunities in less saturated markets that are seeking to move beyond the traditional dry style of gins”.
He explains: “We believe these emerging markets hold the most potential for our range of gins. We pride ourselves on catering to a discerning and mature audience of gin enthusiasts.”
Blood Monkey is available in 12 markets across Ireland, the UK, North America, Central and Eastern Europe and, as of recently, the Far East. “Our target market includes consumers who are passionate about gin and eager to explore the category beyond the traditional dry style gins,” says Kidd. “We believe there’s a vast and untapped world of gin waiting to be discovered.
“By catering to this specific market, we’re able to carve out a niche in the crowded gin category, providing consumers with a distinctive option that stands out from the rest.”
The standout point Kidd refers to is the fact that Blood Monkey “is crafted in a genever style, using a malted grain base with Irish barley”. The spirit is then triple distilled, resulting in a “smooth and refined gin that can be enjoyed neat, just like a white whisky”.
Sustainability-linked points of difference create standout
Others, too, are focusing on their points of difference, with some riding the coattails of the sustainability movement. Foxhole Spirits’ Hyke Gin is produced from internationally sourced table grapes that are surplus to the requirements of multiple retailers’ supply chains.
Hyke’s head of business development, Martin O’Sullivan, says: “We face the same challenges that any smaller brand faces; volume drives efficiency, so we spend a large amount of time looking at our supply chain and making sure it’s as efficient as possible.
“Inflation aside, we continue to develop relationships with small- to medium-sized customers who buy into our sustainable agenda, plus we’re seeing good growth in the travel industry as it steps up its environmental plans.”
A ‘green’ approach is also favoured by the Crafter’s brand, owned by Estonian spirits producer Liviko. “We use the juniper berries and their extract to distil gin [and then] to make a subsequent drink,” explains export marketing specialist & brand manager Gloria Hallaste. “In 2019, our beverage architect developed a solution that is unique in the world: the juniper berries used in the distillation process are reused to make another drink. The remaining extract is used to make Re-Crafted Crafter’s Juniper Berry Soft Drink and Junibeer (a 3.2% ABV beer), while the high-fibre juniper berries are added to Crafter’s Juniper cheese.
“Thanks to this approach, the ecological footprint of our beverages is significantly smaller, because the raw materials for the artisanal beverages are produced locally.”
It clearly pays, then, for craft gins to push their credentials beyond the use of unusual botanicals, for example, to raise their profiles and stay afloat in a sea of competitors.
This article was initially published in the June issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
