Mark O’Loughlin, Marketing Executive, Madrid, Bord Bia – Irish Food Board
Gin has cemented itself as a firm favourite in the Spanish social scene over recent years. In Madrid for example, whether it be the popular gin & limón, the world renowned gin & tonic (meshed into one word -gintonic- by the Spaniards) or the vast variety of gin infused cocktails offered in bars and restaurants, the bulbous stemmed glasses are a common feature among the trendy party goers of the Spanish capital. However, gin consumption isn’t just limited to this particular demographic. In fact, according to the Statista Consumer Market Outlook, gin consumption per capita in Spain is greater than that of Germany, France and the UK combined. At 1.07 litres per capita, Spain is leading the pack for gin consumption in these selected countries.
The gin movement has been largely driven by increased on-premise activity due to better economic conditions. More recent trends have further complemented the gin movement, in particular, the rising popularity of strawberry gin among younger generations which is showing no signs of slowing down. Gin grew 9.9% between 2015/2016, propelled mainly by a 20% increase in domestic production in the same period and by the development of the flavoured segment which grew by 230% between 2012 and 2016.
It is important to note that as the gin movement matures, consumer interest in Spain is starting to shift away from the saturated top end of the segment towards more affordable, standard brands. This is reflected in the data provided by the IWSR which also illustrates the major strides local players are making in the gin space. The imported super-premium category which houses brands such as Martin Millers, Hendricks and G’Vine grew just 1.1% in 2016 compared to a 20.3% growth in the local super-premium category. The same trend can be seen the premium and standard categories:
When we then look at the value-gin category, we see that local brands grew 6.7% but the imported value brands actually experienced a higher growth rate of 9.4%, spearheaded by Gordon’s London Dry Gin. This illustrates the manner in which people are starting to lean towards the lower end of the market as the spike in gin popularity continues. The average retail price of a bottle in this category is roughly €7.
It is expected that gin will continue to be the fastest growing spirit over 2017/2018 with the growing on-trade activity in Spain, in particular the aperitif and after work consumption, as well as the increasing demand for flavoured options helping maintain this positive trend.
For more information please contact mark.oloughlin@bordbia.ie