2016 the year of Gin
This year has proved to be a record breaking year for gin with end of year sales continuing to soar.
The Wine and Spirit Trade Association’s latest Market Report shows that Brits’ love for a gin and tonic is not restricted to the summer months as sales continue to fizz into the festive season.
The report, published today, reveals gin sales in pubs, bars and restaurants (on trade) in 12 months (to 1/10/16) went up +19%, on the same period last year, worth £619m.
The public’s unquenchable thirst for the quintessentially British spirit is also reflected in the amount of gin sold in our shops, supermarkets and off licences (off trade) which in 12 months (to 5/11/16) went up +13%, worth £437m.
Gin broke the £1bn sales mark in the on-and-off trade for the first time ever in in the UK in 2016, 6 months ahead of forecasts, making it a record breaking year for gin.
For six consecutive quarters, on trade sales of gin have seen double digit growth, outperforming every other spirits category.
Since the first WSTA Market Report released in 2012, gin sales in our pubs, bars and restaurants have increased by £300m - the equivalent of an annual boost of £3,750 extra to every UK pub.
We have also seen sales of gin in shops, supermarkets and off licences increase by 68% since 2012.
283,000 hectolitres, the equivalent of 40 million bottles, of gin have been sold in the on and off trade in UK in the last twelve months which works out as 1.12bn gin and tonics.
This year’s volume sales of gin have gone up the equivalent of an extra 7 million bottles compared to 2012, which is the equivalent of around 200 million G&Ts.
Trends in government data show indisputably that the UK has been drinking ever more responsibly over the last ten years - with consumption dropping by a fifth.
With the market shrinking and gin sales booming it shows more and more customers are choosing premium products, like gin, as their chosen tipple.
The Brits can also boast that 3 out of every 4 bottles of gin imported around the world are from the UK.
British gin is now sold overseas in 139 countries around the world with America, Canada, Spain and Germany buying the most.
UK gin brands have benefited from America’s love for hit shows like Downton Abbey and the James Bond franchise helping to sell £159m worth of British gin to the Americans in 2015.
British gin exports to the USA have risen by a staggering 553% in the last decade.
40 new distilleries have opened in 2016 (up to 1/12/16) - according to the HMRC – which, when added to the 56 opened in 2015, means we are close to seeing 100 new distilleries opening in the UK in two years.
In 2010 there were only 116 distilleries in existence in the UK, according to HMRC.
2016 also saw the launch of the WSTA Scotland Gin trail attracting interest from gin lovers across the globe.
In the 2016 International Wine & Spirits Competition (IWSC) 96 gins from the UK won medals. This is up from 75 in 2015.
We’ve seen British gins made using conkers, grape skins, acorns, ants and seaweed.
We (and Mary Berry!) enjoyed seeing a gin & tonic drizzle cake on Great British Bake Off.
Lord Sugar acknowledged that gin is the "spirit of the moment" when he set The Apprentice candidates the task of creating a new gin brand on the hit BBC One show this week.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association said:
“There are many reasons why people may not feel like celebrating 2016 but the WSTA are pleased to give you something happy to reflect on - 2016 can now be remembered as the ‘Great British Gin Take Off’.
We hope that government supports our innovative gin makers who have driven an extraordinary increase in UK exports, up 166% since 2000.
We would like to remind government that cutting excise duty boosts business and brings more money into the Treasury.
Following the cut in spirits duty in the 2015 budget, spirits duty income increased on the previous year by £125m (+4.1%) from April 2015 to March 2016 inclusive.
The UK spirit industry is one of the most heavily taxed in Europe with 76% of a bottle of spirits accounted for by tax, the 4th highest duty rate for spirits in the EU.
Let’s make sure gin continues to boom in 2017.”