‘Ginaissance’ puts industry in good spirits
● Gin drives growth but whisky still the market mainstay
The number of UK distillers increased by a fifth last year amid rising sales of spirits, new research suggests.
The total jumped to 246 as the sector continues to attract investors, said accountancy group UHY Hacker Young.
The UK gin industry saw export sales increase by 9 per cent to £672 million in 2019, while Scotch whisky exports grew 4.4 per cent to £4.91 billion, according to the report.
The increasing popularity of flavoured spirits was also said to be a major driver of growth in the UK distilling industry.
New flavours of gin launched in the UK in the past few years include Lemon Sherbet, Pear Drop and Parma Violet.
James Simmonds, of UHY Hacker Young, said: “The growth in British craft distilling has not stopped yet. Whilst gin sales growth is beginning to taper off, new distillers are still entering the market. Growth won’t continue at this rate forever, but, for now, domestic and overseas consumers’ demand for UK craft spirits hasn’t yet been met.
“The trend for authentic local artisan food and drink looks to be here to stay, and that will continue to tempt entrepreneurs and investors into the craft spirits industry.
“While artisan gin has been the big growth driver over the last five years, there is also strong interest in some of the smaller artisan whisky distillers in Scotland.”
It recently emerged that Scotland’s place as spiritmaking capital of the UK was is under threat as the number of distilleries south of the Border increased for the second year running.
In 2018, the number of distilleries in England overtook those in Scotland for the first time, although nine out of ten distilling jobs were based in Scotland and the bulk of the market remains with Scotland.
Scotland has seen a huge rise in the popularity and production of gin, and the country’s distilleries, from small independents to whisky giants, produces 70 per cent of all UK gin sales.
Three of the world’s best-selling gins are made in Scotland – Hendrick’s, Gordon’s and Tanqueray.
According to HMRC, the gin boom – also called the ginaissance – saw the total number of UK distilleries more than double in the last five years, with figures in England more than tripling.
The Wine and Spirit Trade Association (WSTA) showed a surge in gin sales in 2019 with over 82 million bottles sold in the UK worth £2.6bn.
WSTA CEO Miles Beale said: “It’s fantastic to see a growing number of British distilleries up and down the country, year on year, providing jobs and boosting their local economies.”