Spirits industry today. Is competition benefic or not really? How to thrive in a busy drinks market.

Thinking about how to start or improve an alcohol brand? Information is a major factor in understanding how many startups are successful and how to be one of them.

Distilled Drinks History

Egyptians used liquor for medicinal and religious purposes. In China true distillation process of alcohol started during the 12th century. In Europe, the first distilled beverages were made from grapes and honey probably sometimes in the Middle Ages, Italy was leading the way, their position close to the Middle East helped information gathering. Even today most spirits are distilled from fruits. However, some may be created from grains or even potatoes. The distilled drinks list is quite long, starting from brandy and finishing with vodka, the oldest dating back thousands of years, it is mead, an alcoholic delight created by fermenting honey with water. Know the past so you can understand better the spirits industry today.

Type of spirits

So, what is spirits beverage? The word 'spirit' makes reference to a drink that should not contain added sugar and usually is 35–40% alcohol, in short, a strong distilled liquor. The word “spirit” comes from Latin, it means breath, both as respiration and the wind. There are many stories why these types of drinks are called like this. One is that the name is related to cocktails, the alcohol gives these mixes life or “spirit.” Another says that it is because of their tendency to evaporate.

Whiskey

Whiskey is special distilled alcoholic drink made from fermented grain mash. Many grains can be used like barley, wheat, rye, and corn. Whiskey is usually aged in wooden casks made of oak; this gives a distinct taste. Jack Daniel's Tennessee Whiskey is one of the most popular brands with a memorable whiskey brand logo. Their whiskey branding is targeting male customers and the whiskey packaging is focused on the custom, robust bottle. Also the whiskey brand name plays a vital role in a good recognition. The top whiskey brands will focus on quality both for the drink ensuring it has consistently strong flavors and for the custom whiskey packaging that should have fabulous whiskey packaging boxes.

Scotch

Scotch is normally only made from water and malted barley. It is said that scotch tastes smoother than whiskey. Johnnie Walker Red Label is one of the best-selling Scotch Whisky. Their scotch branding is more flamboyant, the scotch packaging with its red label and golden cork is a good ambassador for the drink taste: a mix of spicy cinnamon and refreshing black pepper. The popular scotch brands usually come from the five Scotch Whisky regions - Campbeltown, Highland, Islay, Lowland and Speyside.

Bourbon

Bourbon is referring to an American whiskey made mainly from corn. The name of this alcoholic drink comes from the French dynasty. Wild Turkey is a trendy bourbon brand that permeated the customers knowledge well before Matthew McConaughey was named creative director back in 2016. Their bourbon branding is consistent across different periods, Wild Turkey's roots trace to 1855, and the bourbon packaging is never missing their characteristic turkey illustration. The bourbon label design is also printed in the characteristic neutral colors. Can you buy bourbon online? Yes, there are companies that even have a bourbon sample pack or bourbon gift packages for special occasions. So, what is a good bourbon brand? If you would like for your bourbon brand to stand out, choose original bourbon bottle craft ideas, special shapes and unusual glass colors paired with funky bourbon brand names.

Brandy

Brandy is a drink created by distilling wine. It can also be served as an aperitif and it is packed with antioxidants. When was brandy invented? Brandy distillation started in France around 1313, and it was prepared only as medical relief. Which is the most popular brandy? Manufactured since 1765, Hennessy is one of the most well-known brandy brands worldwide. Their brandy branding is based on that French charm and the brandy packaging has an aristocratic label design embellished with a golden pattern. Try to learn from all the brandy companies that are already established.

Cognac

Cognac versus brandy. Cognac is a type of brandy named after the region of Cognac, France, so cognac alcohol brands are created in this location. The top Cognac went to Cognac Frapin Chateau Fontpinot XO. Their cognac branding is focused on the aging process, which gives it a subtle, complex, refined, long-lasting bouquet consisting of candied fruit aromas. The cognac packaging is represented by a sleek, elegant bottle in a very refined box. For your own cognac drink brand, select a cognac packaging box that will charm your high-end customers.

Vodka

Vodka is a clear spirit made from fermented grains, though potatoes can also be used. Where vodka comes from? Various types originated in Poland, Russia, and Sweden. What vodka comes in plastic bottles? Smirnoff, uses a quality plastic bottle at an affordable price. However, Absolut is one of the best-known vodka’s on the planet and it doesn’t contain any added sugar. Their transparent vodka packaging is easy to stop on the shelves. On the other hand, Grey Goose took another direction, their vodka branding is focusing more on the luxury side of the market. Potato vodka brands are quite old, british farming gives a good example with Edwards 1902 English potato vodka, the first spirit to be released. The vodka packaging design is usually focused more on the vodka packaging bottle and less on the labelling.

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Rum

Rum is a liquor produced by fermenting and then distilling sugarcane molasses or sugarcane juice. Founded in 1862, Bacardi Rum is probably the most recognized name in rum industry. Their rum branding is more concentrated on fun, on cocktails that require for a white rum such as Cuba Libre, Daiquiri, Piña Colada, Mojito, etc. The rum packaging is always featuring the rum bottle label with the original logo with a bat, a symbol of family unity, good health, and good fortune. The rum bottle drawing of lemons brings a fresh note. Flavored rums are infused with different types of fruits, like orange, citrus, coconut, banana, mango, starfruit or lime. A vintage rum bottle can be a valuable collection item. There are many types of rum brands on the market like dark rum brands, white rum brands, coconut rum brands, spiced rum brands, however what all popular rum brands have in common is the rum marketing strategy: focus on cocktails & events.

Gin

You might wonder what gin is made of? Gin is manufactured by distilling grain alcohol with juniper berries and other botanicals to create this fragrant spirit. Which gin is the best? There are so many gin brands, so it is quite difficult to chose just one. Is competition benefic or not really? We would say that it makes brands try to give their best. Conde Lumar caught our eyes with their premium, artisanal gins and with their unique character and personality. Their gin branding reveals the intricat distillation process and the special ingredients like Juniper, cilantro, cardamom, rinds of lemon, sweet orange, cinnamon, chamomile bitter, etc. Their gin packaging is elegant, and it is showcasing the amazing colors of their drinks, the gin label design is telling the story of the brand. So when you start your own good gin brand, you need to establish if you want to be between cheap gin brands or expensive gin brands because this will dictate your gin advertising strategy.

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Tequila

Can tequila be made anywhere? Tequila is a beverage distilled from the blue agave plant, primarily in Guadalajara, and in Jalisco. Jose Cuervo is one of the most famous tequila brands. Their tequila branding was very successful among consumers, it is the best-selling brand of tequila, selling a fifth of the tequila consumed worldwide. It has a sugary taste followed by notes of pepper and citrus. Their tequila packaging is simple, the focus being on tequila brand name and the special font used in the brand logo. For a new alcohol business, the tequila bottle design might play a crucial role in being noted. The expensive tequila brands will invest a lot in their tequila packaging design, don't try to compete with them, be an authetic craft tequila brand.

Liqueur

A liqueur is an alcoholic beverage composed of spirits and other flavorings such as sugar, fruits, herbs, and spices. Baileys Irish Cream is one of the most popular choices for liqueur. Their liqueur branding has emotional links with the British culture, with the sturdy Irish roots. The liqueur packaging is well known for the black bottle with a beautiful country landscape. The labels for the liqueur bottle make the difference between regular type and the light one. Are liqueur bottles recyclable? Most of them yes because they are made of glass. Coffee liqueur brands and chocolate liqueur brands gain a lot of ground in the last decades.

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Spirits market

Looking at a spirits industry analysis, the spirits market is projected to grow by 5.97% in the next 2 years. So, if you are thinking about opening a spirits startup, now it is the right time. Of course, you can learn from the big players we listed above for each type of spirits, however, when you check your direct competition, you should take a look to smaller drinks businesses. An original spirits brand name can also help become memorable for your customers.

Knowing your target audience and they pleasures would we of great help in finding a good direction for your drinks brand. Also try to surprise them with new flavors or bold marketing campaigns, it will pay off for sure. The spirits marketing should emphases how spirits are made, the consumers are interested in the process nowadays. The alcohol marketing strategies include spirits advertising that have celebrities front and center. It is best to hire a spirits marketing agency that can create a consistent strategy for your premium spirits brand.

Also, for another approach, consider that whiskey and other spirits are trendy commodities that can be appended to your portfolio for asset diversification. Bear in mind that these types of drinks are a long-term commitment; many spirits can take more years to mature. In short, the profit from your spirits investment might take a bit of time to become significant.

Trends for spirits

Knowing the spirits industry trends is key for any drinks brand, finding the right alcohol statistics worldwide can stir you into the right direction, the beverage market is always evolving. How to increase alcohol sales? One of the most important liquor industry trends is the growing interest in wellbeing, health and the environment. Also, we see a shift towards more classical drinks, some easy to mix types. The customers still search for specials flavors and if the favorite drinks come in a sustainable packaging, that’s even better.

The trends in alcohol consumption influence a lot the drinks market. Whiskey became one of the popular choice, the public went for premium spirits lately. Low alcohol options are also in great demand these days. Quality is very important for consumers, so craft distilleries are a desired supplier for remarkable spirits. Tea infused drinks are also a notable preference.

Spirits branding & packaging

Why branding is so important? Nowadays, spirits branding needs to put quality first, less is more. Promote more eco-friendly products with recyclable spirits packaging design, nearly half of all customers consider brand’s sustainability when buying food and drink. Premiumization continues to shape the beverage industry, so drinks brand design needs to reflect this. The spirits label design becomes more intricate and complex embracing art pieces, this makes the spirits marketing / spirits advertising so much easier.

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How to thrive in a busy drinks market

For the spirits packaging, the classical glass bottle might be the way to go, it would give your brand a retro look. Local accents on the spirits label design will also be appreciated. A waste free alcohol packaging design might help your drinks brand appeal to a more high-end audience, alpha consumers. Make everything simple, the packaging symbols explained might help your costumers.

What a alcohol startup needs to succeed in the wine and spirits industry?

The spirits market is highly competitive across the globe, so always check the spirits industry news. A few large firms account for a substantial share of distilled spirits industry sales. Nevertheless, there are many opportunities for small spirits brands that come with innovative ideas.

How to start an alcohol business?

If you are a spirits producer, focus on premium, unique options, craft spirits, cannabis-infused beverages, and alcohol-free drinks should be at the heart of your business. Owning a well-located liquor store can also be a highly profitable business. For a restaurant the average revenue that comes with selling alcohol is 20 to 25 of the total income. Even in recession times, the spirits industry is making good profit.

In conclusion, spirits are a good investment, the rule being: everything in moderation, make your business a spirits brand ambassador.

"One tequila, two tequila, three tequila, floor." George Carlin, American comedian, author, and social critic