Introduction: Estonian distiller Liviko has a storied history that dates back to 1898. The company has carved out a niche in the wine & spirits category with brands such as Vana Tallinn liqueur, Crafter’s gin, Hõbe Vodka, Viru Valge vodka and Bellingshausen Vodka.
In this exclusive interview, Export Director Jörgen Herman details Liviko’s journey, its approach to sustainability and how the company creates memorable experiences for travellers in duty-free environments.
The company (Basement 2, Stand H18) is gearing up to participate in the TFWA Asia Pacific Exhibition, scheduled to be held in Singapore from 12 to 16 May.
Liviko’s enduring success as a premium alcohol group in the Baltics can be attributed to its commitment to quality and product innovation.
“If you do not have a good product, it’s very challenging to achieve success in the highly competitive spirits market – regardless of the sales team,” says Liviko Export Director Jörgen Herman.
“We have high-quality products that do a lot of marketing on their own.”
The company has continuously produced Vana Tallinn liqueur since 1960. Herman explains that it’s one of the most famous Estonian brands, alongside Skype and Bolt.
He notes: “Vana Tallinn is one of the Estonian flagship products that locals are proud of.”
Liviko Export Marketing Specialist Gloria Hallaste takes us on a tour around Liviko Distillery
In 2015, Liviko expanded its portfolio with Crafter’s gin. The company exports Crafter’s products to nearly 70 countries across Europe, Asia, the Middle East and South America, with a significant presence in the travel retail sector.
Liviko’s extensive wines & spirits portfolio is backed by a strategic approach to distribution. Leading beverage producers such as Bacardi-Martini, Rémy Martin and Brown-Forman work with the company to distribute their products in Estonia, Latvia and Lithuania.
Herman mentions that Liviko’s wine portfolio includes more than 700 wines from the Old World and New World.
“Each product is strategically marketed to its corresponding target audience. This targeted approach ensures that we effectively meet the preferences and expectations of a broad and diverse audience,” he adds.
Embracing the no- and low-alcohol trend
Juniper berries have been distilled into gin for centuries. In 2019, Liviko found an innovative way to reuse the berries and residual extract after distillation. Herman says: “Our beverage architect developed a zero-waste solution that is unique in the world: the juniper berries used in the gin distillation process are reused.
“First, juniper berries are distilled to make the award-winning Crafter’s gins. After distillation, we use the residue to make innovative drinks in a new category – Re-crafted Crafter’s Junibeer, which is alcohol-free and with a low ABV.”
The leftover juniper berries are then used to create Crafter’s Juniper cheese in partnership with Andre Farm.
Corsaro Aperitivo is another example of Liviko’s venture into the non-alcoholic market, targeting consumers who are open to new flavour profiles. Herman notes: “Corsaro Aperitivo is designed for those who wish to enjoy cocktails without the effects of alcohol.”
The beverage combines sweet and bitter tastes from rowan and cranberry juices, along with a spice blend. According to Herman, Corsaro Aperitivo has been well received by bartenders and the hospitality sector.
Crafting a sensory experience
Liviko understands the importance of offering immersive experiences to travel retail consumers, especially with the growing focus on experiential retail. The company is currently pushing Crafter’s gin in the channel.
“Liviko differentiates itself in the wines & spirits market through a unique combination of sustainability, innovation and Nordic authenticity,” says Herman.
“Our flagship brand Crafter’s gin is an award-winning Nordic gin crowned by a green mindset, where each botanical is individually distilled.”
To help it stand out in the competitive gin market, Liviko has crafted a novel approach with Crafter’s Sensory Potions – gin sprays that provide consumers with a sensory introduction to different expressions.
Herman explains: “This way the client can feel the aromas of the gin and decide which Crafter’s gin they would like to try or buy.
“These potions are highly aromatic extracts of essential oils distilled from unique botanicals of Crafter’s gins. It is a multifunctional potion that can be used to enhance your cocktails or cooking, or it can be used as a spray in your living room.
“It only takes one or two sprays to add that final touch of misty magic to your cocktail experience and give your gin & tonic a fresh new twist.”
In terms of visibility, Liviko showcases products through various campaigns in duty-free stores, using Crafter’s displays, sensory potions and gift packs.
Liviko’s duty-free presence extends to tailored products such as Vana Tallinn Coffee Fusion and Crafter’s Golden Saffron Gin, which was created to celebrate Dubai Duty Free’s 40th anniversary last year.
Herman says: “The crown jewel of the gin is saffron, a delicate spice known as ‘red gold’ and highly valued around the world. After distillation, the gin undergoes a seven-day infusion with saffron and the outcome is exceptional taste.”
For people and planet
The company’s commitment to sustainability is evident in its focus on resource management and reducing its environmental footprint. Herman reveals that the company has reduced its CO2 emissions by -69% between 2018 and 2023.
“We are dedicated to using sustainable, recyclable packaging,” explains Herman.
The company sources a significant portion of its glass bottles from the local Järvakandi glass factory (O-I Glass), located 85km from Liviko’s production facility in Tallinn.
He continues: “We take pride in our support for the local glass industry and are pleased that nearly half of the raw materials used to make our bottles come from recycled glass.
“Through innovative bottle design, we have reduced the amount of glass used in Crafter’s glass bottles by up to a third. We continually seek ways to reduce our ecological footprint.
“Liviko beverages are also produced sustainably. We thoroughly design and analyse every production step to ensure the most sustainable methods. Our zero-waste drinks are also a step towards a more sustainable future.”
Liviko’s commitment extends to supporting social and cultural projects in Estonia. The company contributions include supporting the new year’s eve concert broadcast on public television, the Vana Tallinn Gala and the annual novel competition.
Additionally, Liviko has long supported sommelier and bartender associations in the Baltics, organising the Vana Tallinn Baltic Sommelier Grand Prix since 2006.
The company also plays a role in shaping the broader conversation around responsible alcohol consumption. Liviko ambassadors work to educate bartenders and end consumers about low-alcohol cocktails and mocktails.
To promote responsible drinking, Liviko partnered with the Association of Alcohol Producers and Importers to launch the campaign ‘If you’re drinking, drink some water too!’.
Navigating the duty-free landscape
The Estonian company is committed to boosting its travel retail visibility and distribution, focusing on partnerships with experienced distributors.
Herman emphasises: “To stand out, we are proud members of Tax Free World Association (TFWA), Middle East & Africa Duty Free Association (MEADFA) and Asia Pacific Travel Retail Association (APTRA).
“We actively participate in key global duty exhibitions and conferences such as TFWA Asia Pacific Exhibition and TFWA World Exhibition. This presence showcases not only Crafter’s gin but also our other brands in the portfolio: Vana Tallinn liqueur, Hõbe Vodka, Bellingshausen vodka and our dedication to the travel retail sector.”
Partnerships are at the core of Liviko’s travel retail strategy. The company recognises that successful collaborations require understanding the dynamic and trend-conscious nature of the duty-free market.
Herman remarks: “Duty-free shopping is synonymous with premium quality and exclusivity, catering to travellers who are not just looking for products but are in pursuit of a distinctive shopping experience.
“Successful partnerships involve collaboration with retailers to ensure that the products are not only premium but also align with the latest trends.”
The company is always open to suggestions from its partners on how to enhance the travel retail experience for consumers, including creating tailor-made products and offering premium packaging.
Looking to the future, the company sees potential for growth and is focused on offering premium products. Herman says: “Exciting flavours, quality drinks and innovation are at the heart of what we do – new ideas are definitely on the way.” ✈