Capitalise on the booming gin market for higher margins and increased profitability
With World Gin Day taking place on the 10th June the UK’s leading purchasing company, Beacon, is encouraging operators to bolster their gin offering to make the most of what is fast becoming a hugely valuable category within the drinks market – one that is growing at an estimated 14 times faster than any other.
Working with two of Beacon’s market leading drinks suppliers: Matthew Clark and Inverarity Morton, Kelley Walker, Purchasing Manager at Beacon, takes a look at the gin market in 2017 and where the opportunities are for businesses:
“We’re seeing insight that suggests that gin is growing at a rate that isn’t set to slow down this year, which is something that is echoed by two of our expert suppliers, Inverarity Morton and Matthew Clark. We saw gin sales tip over the £1bn mark in 2016, with around twice as much growth as its closest competitors: rum and tequila. The popular spirit is set to overtake sales of Scotch Blended Whiskey by 2020, which is currently the second best performing spirit in both the on and off trade behind vodka.
“Gin has seen a huge resurgence in recent years, with figures from the Wine and Spirit Trade Association showing that the equivalent of 1.2 billion G&Ts were sold in 2016 – an increase of 200 million compared to 2012. What’s more, YouGov data has shown that that gin is the most popular spirit among drinkers in the restaurant market and the second most popular in pubs in bars, suggesting a huge opportunity for food led establishments. We have seen many of our customers respond to the increased consumer demand by introducing dedicated gin bars, which is something we anticipate will grow in popularity this year and beyond if gin sales continue at this rate of growth.
“Finally, with premium gin driving much of the value growth and the UK premium mixer market currently in growth at +122.5%, there is a clear opportunity here for operators to move into the premium market to maximise sales and cater to the ever-discerning consumer.”
For more information about Beacon please visit www.beaconpurchasing.co.uk or follow Beacon on Twitter @Beacon_YPP