“This partnership takes our brands into an exciting new space in the airport environment.” So says Ian Macleod Distillers Global Travel Retail Director William Ovens of the company’s partnership to open an Edinburgh Gin bar in the new Plaza Premium Lounge at Edinburgh Airport recently.
With the bar at its heart, the independent lounge offers a strong Scottish Sense of Place, with the use of wood in the design, traditional tartan fabrics on the furniture and a selection of artwork referencing key national landmarks.
I’m paying a visit to the lounge with William Ovens and Trade Marketing & Business Development Manager Sarah Tounsi and we’re looking through the floor to ceiling windows with superb views of the nearby countryside. To the north there’s the Firth of Forth bridges, with the Pentland Hills to the South and Edinburgh city to the east.
Ovens says: “It’s a great fit for Edinburgh Airport to have Edinburgh Gin in this independent lounge. It will really resonate with local and international visitors.
Ian Macleod Distillers is the sole suppliers of spirits to the lounge in the categories in which it plays, from gin to whisky, offering it the chance to promote its brands to a broad audience in the 760sq m space.
“It is an opportunity for people to get to know the brand, become educated about it and our other brands, and it gives us the chance to get feedback on innovation,” adds Ovens.
And, in time, it may lead to further projects with Plaza Premium. “We are hugely excited about what we can do. We’re just at the start of the journey. This a great partnership between two family-owned companies. We know we can adapt, learn and evolve and it’s a model we are very interested in developing in the lounge space. We are discussing other opportunities.”
The initiative comes at an exciting time for the Edinburgh Gin brand, with consolidation of its strong position in the UK, where it is the 11th largest gin brand by value and the fourth largest in the premium segment. It is also the market leader among RTD premium gin brands in the UK. In UK travel retail, it is number one among super-premium brands.
The company aims to build on that strong position with expansion to more markets overseas, led by travel retail. Its ‘tier one’ overseas markets across all channels are Australia, the USA and Germany. In the UK, the company has full distribution across travel retail, led by its presence at airports with Dufry – with which it has been activating heavily over the Summer.
Ovens says: “While we have a very strong presence here in the UK, and are in key European airports with Gebr. Heinemann and other leading retailers, there is still a lot of opportunity to build the footprint and visibility. We have started to do that this year. We have a big presence in Germany, which is an important market for us. And we will see that build. Then those major locations of Dubai, Singapore and Hong Kong will also be vital.
“At this point we are not active in the Americas and it’s a big market for Edinburgh Gin, so at some stage we’ll tackle travel retail there. We have other priorities right now and although our team is growing we need focus. We cannot spread ourselves too thin.
“We are tracking non-traditional gin markets as the category grows. And we are watching what happens in China and Taiwan where we have a strong presence with our malts, but as yet gin is very small there.”
The flavoured gin sector is one in which Edinburgh Gin has been a pioneer since it introduced Rhubarb & Ginger in 2011 (preceding the brand’s acquisition by Ian Macleod in 2016). Over the Summer Strawberry & Pink Peppercorn, a Dufry exclusive, was the focus of its online and in-store activity. Orange & Basil Full Strength is its next launch, which will be introduced at TFWA World Exhibition and rolled out from January 2023.
Ovens says: “Flavoured gin is still a relatively new concept in parts of Europe, Middle East and Asia so there is potential to grow. We are also seeing a resurgence in our original gins, so while consumers are liking the flavours, they are returning to those.
“We have pioneered across the flavour wheel from berry to pink to exotic and now citrus. So I don’t see a lot of gaps in our portfolio. We have lots of work to do to grow but we have a range that carries across all the segments, from full strength to liqueurs.
“The gin-based liqueurs are quite exciting. They play on this trend towards healthier drinks with natural flavours at an attractive price point, and are very flexible in how they are served.”
Travel retail exclusives, such as Strawberry & Pink Peppercorn with Dufry, remain vital, he adds. “Differentiation is a factor for many consumers. It’s a model that works for us.”
To help serve demand at home and increasingly overseas, the Edinburgh Gin story is soon to turn a new page, with a brand refresh from July 2023 and a new distillery opening in the final quarter.
Edinburgh Gin Brand Director Neil Mowat says: “The new distillery is our most significant investment, around £14 million, and is a big commitment to the brand and category for the long term. It will triple our capacity to make gin.
“The site is close to Waverley station. It’s a central point in Edinburgh, where the old meets the new, at a UNESCO world heritage site. It will be a lighthouse building for the city, designed by a local architect David Alexander. We take about 70,000 visitors through our smaller distillery each year, and that will increase substantially. We also want some of the intimacy of the older building to be part of that newer site and believe we can achieve that.”
The brand’s growth rate over recent years necessitated the move, but it brings its own challenges, says Mowat.
“Over the past six years it has not been easy to take on scale while marrying it with the craft sensibilities the brand is built on. We have really scaled up, we have thirsty customers but we have tried to remain connected to what got us here, the use of botanicals, being faithful to the process. Natural ingredients remain important to us and we are recognised for this among consumers too.”
During our visit to Edinburgh, Head Distiller David Wilkinson took us on a taste journey of Edinburgh Gin and across the range of botanicals used. He also noted the challenges in the supply of ingredients from juniper to strawberries. Ultimately those challenges, which are common to suppliers today, will mean price rise for retailers (including in travel retail) and end consumers.
COVID-19 also weighed heavily on the business but also on the communities the gin brand works with and serves.
Mowat says: “With the on-trade closed and so much business lost, COVID had a big impact. We felt we had to support Edinburgh as a city and the Edinburgh Festival that brings so many people here. Missing out on that for two years was not only a loss for the city but also for many young up and coming artists.”
Edinburgh Gin partnered with well-known screenwriter and actress Phoebe Waller-Bridge to create a limited edition bottle, which she designed. All profits (around £160,000) went to a fund to support young performing artists.
“About 1.6 billion pairs of eyes have seen it, so it had impact,” says Mowat. “We will follow up with a new bottle next March from another global icon, who also has a connection to the Festival. We sell the bottles through our own channels so all margin can go to the fund. We will continue to support the Festival as a globally important platform.”
The company has also invested heavily in travel retail over the past five years, with the recruitment of experienced industry executives such as Mark Robinson leading UK (ex-Dufry), Europe and Middle East expansion, and Kelvin Ng ion Asia Pacific. They complement team leader Ovens (who manages the Dufry account), Sarah Tounsi (trade marketing and business development), Gwen Fleming (sales support), Derek Collins (shipping/customer services) and Beth Findlay (customer support).
“We plan to add two more team members if all goes to plan,” says Ovens. “Our aim is to grow and expand our presence, and to innovate in travel retail.”
That applies across the company’s brand ranges, which together now represent a sizeable portfolio from gin to whisky. It has been quite some journey for the Russell family-owned group, which began as a whisky broker in the 1930s, becoming a whisky blender in the 1950s and later a bottler.
A significant brand owner since acquiring Glengoyne from Edrington in 2003, it has moved quickly since. It added the Smokehead brand in 2005, Tamdhu in 2011, then later began the revival of Rosebank in 2017 – a new distillery is planned for the much sought after Lowland single malt.
Another new distillery, Laggan Bay, is planned as a partnership with The Islay Boys for 2024, giving Ian Macleod presence across all four major Scotch whisky-making regions. In line with its expansion, the company is also building a new headquarters, New Russell House.
All of those additions bring their own challenges in terms of focus and distribution, including in travel retail.
“We have momentum now and our recent hires have made a big difference,” says Ovens, “but even then we cannot be all things to all people. We have our focus core brands, and then we have speciality brands, but the focus brands get most attention. Likewise, we cannot go after every operator in every market., We have a tiered account system and priorities as to where we can give most visibility, presence and exposure.”
This year that includes Edinburgh Gin, Glengoyne and value brand King Robert II, among others.
Ovens says: “We spent the COVID years thinking a lot about our ranges, how they are presented and how they could be improved. Glengoyne had a big refresh in April. For King Robert II, we have introduced a new 12 Year Old in a sherry cask finish. Although King Robert is the best-selling value whisky brand in travel retail we have held back on it. It’s a scale brand in the Middle East and Asia, with lots of room to grow at a great price of €11, so there really is a big opportunity.”
Although it now has scale it lacked a decade ago, it is still not easy to build distribution. Ovens says that he would like more retailers to be “open minded” about allowing mid-tier brands an opportunity.
“People want discovery and brands such as Glengoyne or Tamdhu really offer that. And most of what we do in this channel is exclusive, if you look at Glengoyne, Tamdhu, Smokehead and the new channel-exclusive for King Robert II.
“We are really optimistic about where we can go from here with our brands. There are big opportunities for Edinburgh Gin and King Robert II to scale up further. There are probably limits to how far we can grow with some of our malts so we have been looking at our extensive stocks, and within those there are single malt ranges that are expandable.”
Within its malts portfolio, the company is launching Shieldaig American Oak Reserve, a triple cask matured expression while its Highland single malt is presented in new packaging. The line-up also includes The Six Isles, a blended malt which combines liquids from six key whisky-producing islands: Skye, Arran, Mull, Islay, Orkney and Jura. A new Speyside single malt, The White Cask, also joins the lineup for Cannes, and if successful will lay the groundwork for a future domestic launch.
Ovens says: “Shieldaig we have already had some success with, and The White Cask is a contemporary single malt; both are very accessible on price.
“We have requests for our malts that we cannot always satisfy simply due to stock availability. But here we can supply other brands that offer something interesting and different.”
And there’s more to come. Ovens says: “We want to think about ultra-premium whisky in a new way. So we are launching a series of single-grain single casks, which is quite new for travel retail. We have got stocks of aged grain whisky from current or ghost distilleries, ranging from 20 to 35 years. It can be incredibly smooth, is beautifully packaged and has real wow factor. We have some listings with key partners and we think this brings more innovation that the consumer will welcome.
“The beauty is that we can experiment and try new things. We need to be looking out for the next opportunity, whether that is in our ranges or initiatives such as the partnership with Plaza Premium Lounge. So my main feeling about the future is one of excitement, about taking Ian Macleod to the next level with the brands we have today.”
The Plaza Premium Lounge view Plaza Premium Group (PPG) recently opened its first Plaza Premium Lounge in Scotland at Edinburgh Airport, its latest move to expand in Europe. The centrepiece of the lounge is the stylish Edinburgh Gin Bar, a first-of-its-kind collaboration with Ian Macleod Distillers-owned Edinburgh Gin (see main article). Plaza Premium Group told The Moodie Davitt Report: “Our partnership with Ian Macleod Distillers and Edinburgh Gin is of significant importance to our presence in our first Scottish lounge. The provenance of the Edinburgh Gin brand in collaboration with our global brand is a perfect fit.”
It also offers an enhanced guest experience, the hospitality company notes. “At the bar, knowledgeable mixologists serve a wide range of Edinburgh Gin cocktails including three exclusive to Plaza Premium Lounge, created for Plaza Premium guests, something that has not been created before in other independent lounges in the UK.
“Working with partners who understand travel hospitality and showcasing some of the country’s very best products such as Edinburgh Gin will ensure our global passengers leave with a world-class taste of Scotland.”
With sustainability in mind, furniture and materials for the lounge have been sourced from local suppliers to minimise environmental impact. The lighting scheme is comprised of 100% LED lighting, and the facility is equipped with energy-efficient appliances. The lounge also caters for children with a special zone. The play area provides a shuffleboard, interactive wall games and a small climbing wall. There is an extensive food menu available, with travellers able to savour traditional Scottish fare such as haggis and potato scones, as well as fish and chips and burgers. The 165-guest facility – which is open to all travellers regardless of airline or class of travel – becomes the hospitality company’s seventh European location. Plaza Premium Group says: “Edinburgh is a key strategic location and reinforces the group’s presence in the UK. Our expansion across Europe has been rapid in the past six months with new openings in Helsinki, Budapest, Frankfurt and further lounges to follow in Rome and other strategic European locations.” |
