Absinthe has had a bumpy ride of late, however, the category has been boosted by the combination of a greater focus on quality and the cocktail boom. Sandra Newman reports.
Absinthe’s progress has not been smooth in recent years. Trends have varied and sales of this relatively expensive artisanal spirit have fluctuated. Consumption of absinthe is largely concentrated in a few key markets, although its global appeal is building, particularly in Asia. In 2020, the top five markets - the
US, Czech Republic, Australia, Germany and the UK - accounted for 73.5% of global volume consumption, according to IWSR Drinks Market Analysis.
The US market is recovering quickly, according to Alan Moss, commercial director at Artemisia, which produces the La Clandestine brand. “Looking at our numbers, obviously 2020 was not too good, but 2021 was a record year and 2022 is on track to be 20% ahead of that,” he says.
Lance Winters, master distiller at US-based St George Spirits, which owns the namesake absinthe brand, also reports an upturn in US sales. “We saw a slight decline in 2020, with a massive uptick in 2021,” he says. “From our perspective, the US market has recovered. That said, the on-premise has been slow to recover. Spirits like absinthe are largely driven by the on-premise sector.”
At Distilleries et Domaines de Provence, owner of Grande Absente 69 and Absente 55, export manager Antoine Robert has observed promising trends in key markets. “Our forecasts are optimistic for the category as there is significant growth in the main domestic markets - the US, Japan and Europe - and a growing interest in Asian countries,” he says. “In the US, the category has gained focus since 2020, after a decade of decline. Some new countries, such as India, China, Colombia and Africa, are discovering absinthe, and could be an important growth lever.”
Metropolitan Spirits Group’s (MSG) La Maison Fontaine brand is present in Europe and in Asia, where co-founder & chairman Sven Olsen says the brand has “established quite a nice footprint, including Japan, China, Hong Kong, Taiwan, Singapore, Indonesia, the Philippines and Thailand”.
The return of tourism is boosting sales in Asia, where high-end hotels are key outlets for Fontaine, but Olsen says the recovery there is patchy. “In Europe, we are clearly seeing a bounceback, while Asia still is two steps forward and one backward,” he explains. “When 25m people are under strict lockdown in Shanghai, it isn't exactly helpful for our business there, which has a strong focus on cocktail bars.”
Over in Global Travel Retail, volume sales will return to 2019 levels by 2024, predicts Distilleries et Domaines de Provence’s Robert. “Travel retail is important for the visibility of absinthe all around the world and, outside of the pandemic period, it is also an important distribution channel.”
Artemisia’s Moss agrees that “travel retail remains an opportunity” and reveals that the company aims to target the channel with a new 69% ABV version of La Clandestine called La Clandestine Blanche.
On-premise bouncing back ‘really strongly’ worldwide
The importance of the on-premise for the category means its recent revival has been welcomed by producers. Hendrick’s global brand ambassador Ally Martin says: “Across the world, most of the on-trade is coming back strongly, which is fantastic. In terms of performance, we’re not seeing too much of a difference now compared with before the pandemic.”
Hendrick’s Absinthe was launched in the UK in 2019 and will be rolled out in seven additional markets worldwide this year. Martin describes the addition to the Hendrick’s portfolio as “experimental and exciting”. He says: “Our master distiller, Lesley Gracie, reimagined absinthe as a gloriously approachable, eminently mixable, superpremium botanical spirit, and we’re really happy with how the trade has responded to it and how it’s performing in bars.”
Well-established brand La Fée’s key markets are the UK, the EU, the US and the UAE, as well as Asia-Pacific. Founder George Rowley thinks that the signs for future expansion are promising. “The start of this year was interesting in that several new markets are looking to La Fée for their premium portfolios,” he says. Rowley reports that La Fée's sales have now recovered to exceed pre-pandemic levels in the UK, France, Italy and the US. “We are seeing growth in most markets, especially those that are rolling out sales via Amazon, such as France, Germany and Italy,” he adds.
At Hapsburg absinthe producer Wine & Spirit International, director Dale Sklar also highlights the e-commerce opportunity. “The online business has risen exponentially and continues to do so,” he says. Artemisia’s Moss agrees: “Many of us in the absinthe sector were focused on the on-premise pre-pandemic and we obviously learned that, as a result of Covid-19, we have to move to a more balanced sales mix, including e-commerce.”
While Sklar feels absinthe “retains some of its notoriety as a bad boy’s drink”, he has seen “a slow gentrification” of the category. As it becomes “ever-more respectable”, he expects brands will grow slowly and be listed on more off-trade shelves.
Regional identity and local ingredients rising trends
US-based Jade Liqueurs distils its absinthe expressions in France at the historic Combier distillery and markets them in the EU, the UK and North America, where product quality and regional identity have become key trends.
“Whereas the category was plagued with phony industrialised products some 15 years ago, the trend towards quality that discriminating consumers demanded has gained momentum,” says president Ted Breaux. “Smaller producers far from absinthe’s historical epicentre [of France and Switzerland] find it more practical to create an absinthe with a regional tilt, using local botanicals much in the same way that distillers have done with gin to find an identity.”
Tapping into the botanical trend is Distilleries et Domaines de Provence’s Absente Fluo 26 Liqueur, made from of a maceration of mugwort and a distillation of wormwood, male aurone, green anise, lemon balm and peppermint plants. Launched last year, Robert says it is “developing well in bars and clubs, karaoke and cocktail bars”.
Devil’s Botany’s London Absinthe features local botanicals such as elderflower, lemon balm and meadowsweet. The brand is currently only available in the UK, but the company is targeting the EU, Japan and the US. Co-founder Rhys Everett highlights the growing appeal of provenance: “As consumers become increasingly interested in aperitifs and botanical spirits, their curiosity for absinthe is also growing. Craft absinthe producers are experimenting with local botanicals, which improves provenance and creates a dialogue around absinthe that is unique to individual locations.”
It’s a similar story at Hood River Distillers which distributes its Lucid Absinthe in the US and Canada. “Consumers seem to be increasingly more educated on craft spirits, including absinthe, and which ingredients are used to make them,” says senior brand manager Keri Meuret.
Wine & Spirit International’s Sklar agrees: “Small-scale ‘homegrown’ craft production, whether beers or spirits, is currently enjoying a worldwide boom, and so this will attract new players within absinthe.”
Smaller regional brands may find international expansion challenging warns Artemisia’s Moss. “Many companies can make great absinthe, but getting into new countries is quite difficult,” he explains. “Making a brand international takes a lot of work, but it also takes having the right brand. For me, if you’re going to sell at US$50 to $60 [per bottle], it helps to have a very good backstory.”
With this in mind, Artemisia has unveiled new packaging for La Clandestine that emphasises its heritage, which dates back to 1935.
Rise in cocktail consumption boosting the category’s fortunes
The global renaissance of classic cocktails from the 1930s has driven demand for quality absinthe, according to Breaux. While “crafting quality absinthe is a labour-intensive process that requires a tremendous volume of botanicals, specialised equipment, energy and time”, he expects demand for high-quality products to grow over the next few years. “The category does enjoy a fantastic history, a cult-like following, and is bolstered by the simple fact that one cannot operate a respectable craft cocktail bar without a good-quality absinthe on the shelf,” says Breaux. Meuret shares his view: “Hopefully, the absinthe cocktail creativity and experimentation will continue, with bartenders and consumers both feeling increasingly more comfortable using this versatile spirit.”
There is no denying the impact of the rise in cocktail consumption on the category’s fortunes. Since the legalisation of absinthe in the US, says St George Spirits’ Winters, the “desire for great cocktails, either using absinthe as a base or as a rinse”, has “most definitely contributed” to the category’s ongoing popularity.
With the cocktail trend set to continue, MSG’s Olsen feels the disappearance of some “more questionable” absinthe expressions in recent years should also benefit the sector. “While this may have had a negative effect on category volume in the short term, it clearly creates a much sounder base for future growth,” he says. “With Fontaine Absinthe, we are planning for strong double-digit growth based on a return to some level of normalcy in our main markets.”
Devil’s Botany’s Everett is also optimistic. “The absinthe category is only at the beginning of its revival, so developments over the next few years will be very exciting,” he says. “We’re already seeing many producers experimenting with absinthe in the UK and globally, which is increasing industry awareness and consumer interest.”
This article was initially published in June's issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
