This article was initially published in the April issue of Global Drinks Intel magazine. For details on how to subscribe click here.
Building on the global resurgence of Japanese whisky in recent years, many of the country’s distillers have turned their attention to craft gin.
While many of Japan’s gin brands are not available outside their domestic market, international brand owners are now tapping into growing consumer interest and bringing Japanese gins and other white spirits to a wider audience.
As one of the pioneers in this area, French group BBC Spirits has continued to develop its Hokkaido-made Etsu Gin internationally since its 2018 debut. “The Etsu Japanese Gin range, with four expressions, is a priority in the BBC Spirits portfolio,” explains marketing director Cécile Frapsauce. “Last year, we sold over 190,000 bottles of Etsu (+20% versus 2021). We are now available in over 30 states in the US and more than 50 international markets throughout Europe, North America, Asia and Oceania.”
BBC Spirits has recently extended its range of Japanese spirits, building on Etsu’s success, reveals Frapsauce. “We launched Mankai and The Hakuto Japanese gins in 2021,” she says. “The Tokyo Nights range of Japanese gin, vodka and rum was launched in 2020. These brands are available across Europe. There’s a growing trend for Japanese spirits and premium spirits, particularly in gin. We are strengthening our presence in the European market year after year with these brands.”
International success draws new entrants to category
Launched in 2020, Marussia Beverages’ 135° East Gin has also achieved international success. Brand manager Louis Laborde says: “135° East Gin is performing very well. Last year, volumes increased by 40% versus 2021. Today, our Japanese artisan gin is distributed in 30-plus countries starting with the US, the UK, many Western European countries and, of course, Japan. 135° East has also been launched in Australia, an emerging market for the category with great potential.”
Laborde puts the success of Japanese gin down to several factors. “The category is facing strong dynamics, meeting consumers’ growing curiosity for Japanese food, spirits and culture in general,” he says. “Roku, launched internationally in 2017, and Sui, from Suntory and only available in Japan, lead the way and have inspired new players. There’s an increasing number of Japanese gins.”
Roku was “the result of a long tradition of respect for natural ingredients, prioritisation of quality and the careful craftsmanship of Japanese artisans”, according to Suntory MD Jon Potter. “Roku is a standout in the gin category, as global interest in Japanese products and craftsmanship is on the rise.”
Suntory’s Japanese white spirits portfolio also includes Haku Vodka, which has been particularly successful in the US and is growing its presence in other European and Asian markets, including India.
Like Suntory, Pernod Ricard is another multinational brand owner seeking to capitalise on the growth of Japanese gin, with its acquisition of Ki No Bi in 2020. “The group has a comprehensive portfolio of gins from London, the Black Forest and South Africa,” says The Kyoto Distillery MD Antonio Sanchez Villarreal. “Ki No Bi is unique by its terroir, its craftsmanship and its tasting notes. The brand was born of Kyoto and remains true to its roots after joining the Pernod Ricard family. The three founders remain involved in the brand and as custodians of the company’s DNA.”
According to Sanchez Villarreal, the backing of a global drinks company will help Ki No Bi to progress. “Now, The Kyoto Distillery has access to the best distribution network in the spirits industry and best-in-class in-market execution capabilities,” he explains. “This helps with the geographical expansion of Ki No Bi and the organic growth in existing markets, thus increasing the overall brand potential. Pernod Ricard also provides significant expertise in the areas of marketing and ESG (environmental, social and governance).”
One of the more recent independent entrants to the market is Nomu-Japan’s Wabi Sabi Gin. Nomu-Japan founder Tom Brayman says Wabi Sabi has had a “rather successful year” since launching in 2022. “Our multiple international medals, including a Double Masters Medal for ultra-premium and micro-distillery in the Global Gin Masters, have garnered significant interest from global importers and distributors,” he says. “We also received export support from the Japanese government to promote Wabi Sabi overseas. Following this success, we’re rolling out our global distribution strategy in 2023. Also this year, we’re introducing a sparkling, canned cocktail based on Wabi Sabi to offer a lower-alcohol and lower-calorie option.”
Brands boost range appeal with versatility of new variants
Line extensions are also important for Etsu and Ki No Bi. BBC Spirits added three new Etsu variants [Double Yuzu, Double Orange and Pacific Ocean Water] in 2020, which Frapsauce says now account for a third of the brand’s sales. She attributes their success to their versatility, which appeals to bartenders.
At The Kyoto Distillery, Sanchez Villarreal says of Ki No Bi’s newest lines: “Ki No Tea and Ki No Bi Sei were launched shortly after Ki No Bi Dry. Sold at a premium, they tend to appeal to the discerning consumers that have already tried Dry and want a more tea-forward or more intense experience.”
Ki No Tea was developed in collaboration with tea grower and blender Hori-Shichimeien, and features Tencha tea as well as the Gyokuro tea also found in Ki No Bi Dry. Sanchez Villarreal describes Sei as “our take on the traditional Royal Navy-strength gin”. He adds: “It’s a recalibrated version of Ki No Bi Dry to 54.5% ABV and takes the best of the original 11 botanicals at this higher strength for a thicker mouthfeel and a lead role in three-plus-ingredient cocktails like a Negroni.”
Ki No Bi cask-aged limited editions have also been released, which Sanchez Villarreal says “have a very strong international following, including with consumers of brown spirits”.
Eyeing growth in Australia, Asia, the US, Europe and the UK
Highlighting Japanese gin’s broad appeal, Sanchez Villarreal sees Ki No Bi competing with “prestige spirits in any category, not limited to gin”.
“We believe Ki No Bi can transcend the gin category and we position it as a true Japanese luxury product where all its components are tied to the Kyoto community, its artisans, farmers and craftspeople,” he says.
Wabi Sabi Gin also competes at a global level, adds Nomu-Japan’s Brayman. “Our general competition is within ultra-premium gin where our small-batch, full-bodied and long-finish formula puts it in competition with other international brands.”
Although gin’s growth has started to slow in some markets recently, BBC Spirits’ Frapsauce feels there is still room for healthy international expansion. “We expect rapid growth in markets such as Italy, France and the US, where premium gin is still growing fast,” she says.
Suntory’s Potter agrees: “Gin is an attractive category and continues to attract investment from existing and new brands. Roku’s growth has outpaced its competition, and we strongly believe in the positive outlook for the brand.”
Marussia Beverages’ Laborde feels that the existing key markets for 135° East also still hold considerable potential. “We have a high ambition, especially in our lead markets, namely the US and the UK, and especially in the on-trade,” he says.
135° East is also expected to grow strongly in Australia, where Laborde says the brand’s importer, Pinnacle Drinks, is “doing great work to develop the category”. The gin is also expanding in Japan, he says, “in premium cocktails bars, starting with our partner the Ben Fiddich in Tokyo and the Nineteenth Bar in Kobe”.
Sanchez Villarreal says for Ki No Bi: “Asia and global travel retail are currently our fastest-growing regions, but even some mature European markets and the US have significant potential because of Ki No Bi’s Japanese craft appeal and its great pairing with Asian cuisine, which is growing globally.” Having launched Ki No Bi in South Korea, China and India in recent months, he says Asia is a focus for extending the brand’s presence internationally.
Wabi Sabi is also targeting Asia for expansion, as well as other regions. “Markets that have high potential for ultra-premium gin will be our key markets,” says Brayman. “We’re currently seeking opportunities in the UK, parts of the US and Europe. In Japan, we distribute to selected high-end restaurants and bars, while also seeking to expand into nearby markets like Taiwan and South East Asia.”
Looking forward, Brayman predicts a promising future for gin and other white spirits from Japan in international markets. “I see significant potential for Japanese spirits beyond whisky,” he says. “The craftsmanship and attention to detail that made Japanese whisky famous are being applied to other spirits.
“Once more producers learn how to produce white spirits and other non-traditional drinks while maintaining similar quality level, I believe they, too, can achieve similar fame and success.”
This article was initially published in the April issue of Global Drinks Intel magazine. For details on how to subscribe click here.
