The Wine and Spirit Trade Association has revealed that combined yearly sales of gin in the UK and British gin overseas have doubled in value over the last five years, reaching £2.2 billion in the 12 months to June 2018.
A market report released by the association showed that in the 12 months to June 2018, gin sales in the UK were worth over £1.6 billion, up 38% on last year, and British gin exports reached £532 million in the same period.
According to the report, gin is now out-performing any other spirit in the UK in terms of sales growth, accounting for 68% of value growth in the UK’s spirits sector.
The report claims that there are now 315 distilleries in the UK – more than double the number that were operating across the country five years ago.
However, the Association warned that the government’s proposed increase 3.4% on alcohol duty in the Autumn budget could stifle the growth of the spirit.
Miles Beale chief executive of the Wine and Spirit Trade Association said: “Gin has proved itself to be just the tonic for the Government’s ambitions to grow exports of premium British products.
“On top of that the gin boom in the UK has allowed our talented and innovative British distillers to invest and grow their businesses creating new jobs and boosting the British economy.
“If gin continues to grow at this rate there’s no reason why the industry can’t set its sights higher, we could be talking about a £3 billion gin empire by the end of 2020.
“But as things stand, instead of supporting this jewel in the crown of the British drinks industry, the Chancellor is set to raise spirits duty at the next Budget.
“UK consumers already pay some of the highest alcohol prices in Europe. We are calling on Philip Hammond to freeze duty – just as he did last year.
“Yet again it would be a win/win/win – more money for the Treasury, support for British business, pubs and the cash-strapped consumer.”
© FoodBev Media Ltd 2018