BlogSpirits & Wines

“We’re not everywhere globally, but we want to be everywhere globally.” Johnny Neill is in an ambitious mood. We’re sat on the superyacht that doubles as Halewood Artisanal Spirits’s TFWA World Exhibition stand. Out in the harbour in the Cannes sunshine, it’s an easy life that belies the tricky financial environment faced by the global drinks conglomerates. . Halewood was not immune. Revenues fell by £33 million during the 12 months to 1 July 2023, with losses stacking up to £20m. The company isn’t obligated to disclose its 2024 performance until next month,  but if Neill’s peppy demeanour is anything to go by as we sit on that glitzy boat, the tides have turned.

“Business is good,” he affirms. With his international sales development hat on, Neill has a global view of the company’s GTR business. But he’s also the founder of Whitley Neill Gin, known for its vibrant bottles and pioneering take on flavour. Halewood acquired Whitley Neill in 2009, way ahead of the gin boom that propelled many in the category to wild growth. In some markets, this has started to decline as the wave passes. Globally, the brand is doing “very well”, Neill says, while acknowledging a softening in its native British market. “In the UK we’ve been consolidating our flavours a little bit as the gin market’s evolved,” he notes. But he’s confident that travel retail is still on the upward trajectory when it comes to that rainbow of flavours offered by the brand.

“We had Heinemann here yesterday, and it does feel like the flavoured space is accelerating,” he attests. “Don’t get me wrong, I think a lot of the operators are bringing their gin ranges in a little bit. But we’ve got a strong presence in that flavoured space. Is it an additional SKU? Maybe not. But it will be replacing a SKU that’s in there with some of our innovation.” All eyes are on the US as the next big opportunity.

Innovation is a key theme beyond gin for Halewood. The maker is the only UK distiller to have whisky distilleries in three nations: England, Wales and Scotland. And that represents an opportunity in the crowded category, Neill says. Although Welsh distillery Aber Falls is just six years old, it is the most established of the trio.

Bonnington in Leith, Edinburgh, will produce the John Crabbie brand (some bottles have been released domestically under the eponymous monniker). Lastly, Bankhall, near Blackpool in Lancashire, is the home of both its English whisky, and the British blend of the same name. It’s the headliner in a trio of whiskies from the brand, which is unusual in itself. Blends usually play second fiddle to single malts.

“There’s differentiation because it’s a British rather than an English or a Welsh thing,” he notes. “I think Britain brings the best of the three distilleries together in this blend. Bank Hall has got a nice history behind it in terms of the provenance.” The site’s distilling history stretched back to the 19th century. “It’s just bringing together the best of British, and then we’ll be pushing that out across the world in terms of messaging.”

Neill says there’s already been interest in Singapore, with distribution about to kick off in Japan and Korea as well. Price-wise, the range sits at £18 to £25 – the very opposite of the premiumisation narrative so prevalent across whisky. It’s a fascinating game to play, especially in a channel like GTR where the focus is so often on the high-end.

“The price points work,” he attests. “We’ve had some interest in terms of the pricing strategies.” But how can it even work? He stresses it’s because Halewood owns the supply. But so, too, to most brands in the channel. “We know we have the scale and we’ve been laying down the right liquids for sustainability purposes so that we can achieve those price points in the long term.”

What the remarkably accessible pricing does achieve is to invite new, younger drinkers into British whisky – and indeed whisky altogether. “People who are drinking Jack Daniel’s, Jim Beam, that sort of thing.” And tasting through the range, Bankhall really does offer a lot at that price point. Light, bright and versatile, it’s soft, easy to sip, and very mixable. A stand-out for me is the Triple Pot Distilled Single Malt Distiller’s Cut. Released at 46% ABV, it’s got a nice weight to it, but the lighter grain notes would feel familiar to American whiskey drinkers. Alongside the British Single Malt and British Blended Whisky expressions, it makes for a coherent collection.

The spirits category on everyone’s lips at the moment is Tequila. But aside from a couple of UK distribution agreements in the UK (most notably, the Tequila-based cream liqueur Tequila Rose), Halewood doesn’t have an iron in that fire. And that doesn’t seem likely to change. “Is Tequila going to be big enough for Halewood to get involved in? I’m not sure,” he says. “At the moment I think there’s enough going on, and there’s enough capital investment going into the whisky distilleries. We need to focus on getting these right first and maintaining Whitley Neill and Dead Man’s Fingers.”

Dead Man’s Fingers is the exception to the rule. A Tequila-based line extension was launched in 2022, but generally DMF is known as a bold, colourful rum brand. Its collection spans spiced, flavoured and white variants. “I think it’s probably doing a million cases,” Neill estimates. Flavour variants have undoubtedly driven its growth. “There probably is a little element there of step by step on DMF,” he says, suggesting that the rate of new releases has been a little slower than Whitley Neill. But there is no doubt the brand is making the most of interest now. Flavours, a focus on more accessible price points, and courting whisky for the long haul. It’s a recipe that Halewood hopes it has nailed.

 

Peter Marshall

Founder: trunblocked.com/Marshall Arts
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