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2012 - the year ahead
CI’s drinks expert Marcin Miller looks ahead to 2012 and finds it is by no means doom and gloom… Well, not all of it.
British newspapers continue to assail readers with stories of doom and despair; if we believe what the press writes, we are all going to hell in a handcart any day soon. Surely, however, there are grounds for optimism for those of us involved in drink. Why? Some brands are showing remarkable growth and people are still going out. As long as you can get the offering right for your clientele, there is no reason to suggest you won’t thrive. Increasingly, this means raising ones game; cocktails are key but only when presented with innovation, story-telling and a little theatre.
As the gulf between richer and poorer grows larger, so the big drinks brands continue their march for global domination. Concurrently, in their wake plenty of opportunities are created for small, niche producers to operate profitably. This can be seen in the micro-distilling boom in the USA and Europe. So, as 2012 gets into gear, let’s see what is happening in the key spirits categories.
Vodka
Reports of the death of vodka have been grossly exaggerated. It is a category that never ceases to amaze. In 2009 it was widely assumed that everyone – from bartender to consumer – was royally fed up with vodka and would, commentators argued, turn to gin as a more flavoursome white spirit option. While gin is certainly dynamic, it has yet to show the sort of growth that vodka continues to post. Vodka shows the characteristic adaptability and resilience associated with Poland, its undoubted country of origin; in 2010 brands such as Luksusowa and Zubrowka, as well as Russian Standard and many others, showed double digit growth largely due to the continued interest in cocktails. Expect more of the same in 2012.
Gin
Many articles have been written about the return of gin and the big brands are doing well. Their success allows for new, unusual, boutique gins – plus top notch mixers – to pique the interest of bartenders and curious consumers who believe there is life beyond Gordon’s & Schweppes. Capture the imagination of your customers by looking beyond the predictable.
Scotch Whisky
Scotch whisky maintains its dynamic growth; as suggested in my last column, blends are the future. The world has changed; it is no longer expected for a drinker of blended whisky to graduate to single malts. In new and emerging markets, loyalists are trading up from standard or premium blends to older, rarer, more expensive examples. As a result, the best performing categories in Scotch are ultra-premium and above.
Irish Whiskey
Irish whiskey has become, for the first time, a fully-fledged category. It remains dominated by Jameson (which has shown 16% growth year on year); Irish Distillers has demonstrated its commitment with substantial marketing support and new top quality launches from within the group. The excitement comes in the form of William Grant & Sons (owners of the world’s best-selling single malt, Glenfiddich) buying Tullamore Dew. Hot on the heels of that acquisition, Beam bought the independent Irish distillery, Cooley. There are now four significant players in Irish whiskey so ignore it at your peril.
The next big thing?
The success of the big four in Cognac in 2010 is proof, were it required, that consumers may be drinking less but they are certainly drinking better.
So, what is the next big thing? For years this albatross has been hung around the neck of rum and tequila in alternate years. Rum remains well-placed as it has a foot in both camps, white and dark spirits. Bacardi continues to dominate and is closing in on its very impressive high-water mark of 20m case sales. Rum remains reliant on continued interest in cocktails but the emergence of more rum connoisseurs is a distinct possibility. Tequila is slowly starting to shed the slammer image as commentators show increasing interest in the premium side. Leading bartenders understand tequila and are happy to experiment in cocktails other than margaritas.
You see? Plenty of reasons to be cheerful.
