Britain’s Cambridge Distillery is reporting double-digit annual growth for its £3,000 (US$4,021) Watenshi Gin.
Gin sales in the UK fell by 14% last year, with the category’s share of total alcohol consumption falling by 4%, IWSR data revealed in June.
William Rowe, co-founder and master distiller at Cambridge Distillery, spoke to The Spirits Business about premiumisation and the gin category’s place within it. “We’re seeing a slowdown in premiumization in some brands,” he said, but at the same time, “people are.” Frankly, I think they just have different definitions of what premiumization actually means. ”
He explained: “Over the last 10 years, there have been a lot of people who have been guilty of calling something premiumization, which is when you make something a different color and say it’s handmade.
“I don’t think there is any more or less demand for premiumization than there has been in the past, and there probably never will be. But over time, customers will understand what is actually premium and what is not. I think you’ll be more adept at determining what’s going on.” It’s a repackaging of the old without anything new that has a hard time justifying the price. ”
If premium means gin in the £30-40 (US$40-53) price range, Lowe wouldn’t be surprised that the sector is stalling. “The increase (of 30 to 40 pounds in gin) over the last 10 years has been almost entirely due to synthetic flavors and artificial colors. And of course it has stagnated because people are tired of it. Regarding that, I think I can definitely see that happening.
“I’m not involved in the flavor market, so I don’t have an accurate barometer for it internally, but I certainly get the impression that the trend is over.
“We now have a much more flavorful gin than a gin brand. The position I’ve held for a long time is that the market can offer more flavorful variations of that category, rather than the category itself. The idea is that we’ve reached a tipping point where we’ll eventually decline.”
The decline in demand for this type of gin is “good news” for Cambridge distillers. Because, as Lowe explained, “I think there was a disingenuous approach to premiumization there, and in some ways it just got played around with and failed, but it did what it had to do.” did. But once those players leave, it leaves more room for those truly engaged in the pursuit of excellence.
“Then you have a more comfortable scenario of less noise and more music.”
At the lower end of the premium range, interest may be starting to decline, but at the other end of the scale it continues to grow, doing the opposite, with Cambridge Distillery establishing itself as an ultra-premium gin. This is Mr. Low’s belief.
He said: “Not only are volumes and values increasing, but so is the number of markets in which we operate and where that demand is coming from. And this is by no means limited to London. ”
Japanese angel
Lowe’s is the maker of Watenshi, which was dubbed “the world’s most expensive gin” when it was launched in 2015 and now costs £3,000 (US$4,021). It is made from a small amount of Angel’s Share preserved from the distillery’s Japanese Gin (made with Japanese botanicals). About 10 years have passed since the product was introduced to the market, and he commented on how it has fared as follows: “Demand is outstripping supply. We’re about to celebrate our 10th anniversary in 2025, and we’ve seen double-digit growth every year since its launch.”
“What really makes me smile every time I think about Watenshi is that every time people buy it, they are sure to buy it again. This is not a trophy hunter product that sits on a shelf as a prize. . This is a product that is used for consumption and enjoyment. People love it. They will buy it again. It’s a great position.”
Justifying Watenshi’s price (and the distillery’s other expressions too, which are much lower, ranging from £80 to £200), he added: It is much more labor intensive and results in a much better quality stamp.
“I believe quality is tangible and demonstrable, but if it’s not, it’s not. If you can’t prove it, it probably doesn’t exist. And if you can’t prove it, it probably doesn’t exist. I don’t see any slowing down for those who are aggressively pursuing higher quality to demonstrate what they have to offer.”
Referring to IWSR data, where the company’s highest price category is considered “luxury” or “luxury plus” ($100 and above), Lowe said: We outsell the rest of the world combined by a 3-to-1 ratio.
“We are the world leader in premium gin, with around 75% of the global market share. Do you think premiumization is slowing down in that respect? No.”
But again, looking at premiumization as a “broad brush” rather than a “slowdown” when it comes to flavored gin, he said, “There has been an almost complete stoppage of people trying to bring different flavors, say £37, etc. to market.” I’m watching.
“I definitely think we are heading in that direction,” he declared.
“When it comes to color and flavor, I think it’s good enough as long as the product is good. It doesn’t have to stand out. It just doesn’t have to be bad. If the demand and opportunity match, that’s fine, but… These types of trends will come and go, and once the main rush of the second gin renaissance has passed, it will be these high-quality producers that will remain.”
Not innovation for the sake of innovation
Although Cambridge Distillery uses ingredients considered “innovative” (such as ants) in the composition of its gin, that was never the distillery’s aim. “Innovation per se has never been our goal. Our goal is just quality,” Lowe insists.
“Innovation, when done successfully, is nothing more or less than experimentation. It is very easy to be different. Being different successfully is what makes an innovator.
“If there was a traditional route to achieving higher quality, that would be great. But you’ve seen the level of the gin industry before Cambridge Distillery – 40 bottles of gin. It was impossible to sell it for more than £54.
On the new product development front, Lowe is working on the next installment of the America’s Herbarium series. This is a series of gins intended to use ingredients discovered by Charles Darwin on the Beagle.
Additionally, there is a gin aged in Margaux barrels, a crossover into the world of wine and a product of Lowe’s expertise as a Master of Wine. “The combination of living in both the wine and spirits worlds and being effectively bilingual in that regard is one of the reasons we are able to innovate so consistently,” he said. .
For Lowe, new products are part of the lifeblood of Cambridge Distillery.
“Honestly, that’s kind of my role at the company these days. Once a product is created, finalized, and brought to market, I know my job is effectively done. Now I can start working on the next new project, which will take up most of my time.”
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