Ginger Drinks: Lingering spice

Lingering spice

Seamus May explores the ginger drinks segment and finds out what is driving its continued popularity.

Ginger beer has a long and storied history in Australia. Stoneware jars which contained the spicy brewed beverage have been discovered in Sydney, dating all the way back to 1830. In 1838, William Starkey’s Ginger Beer factory, located in modernday Elizabeth Street, Sydney, was the largest plant of its kind in the Southern Hemisphere. Australian brand Kirk’s is perhaps one of the oldest locally established brands of ginger drink still in production, dating back nearly 100 years, to at least 1924.

Ginger beer’s extensive presence in Australia is unsurprising when you consider that its two vital ingredients, root ginger and sugar cane, are produced here in abundance. The Sunshine Coast region alone produces over 6,000 tonnes of ginger a year, and Queensland as a whole harvests more than 35 million tonnes of sugar cane.

But what is it about ginger drinks that keeps consumers returning across the centuries?

For Matt Redin, Marketing Manager of Angove Family Winemakers (which produces Stone’s Ginger Beer and Wine in Australia), ginger drinks are perfectly suited to the Australian climate.

“Ginger is both refreshing and sweet at the same time with a lovely lemony, citrus character and a gentle warmth that is perfect for our cooler months,” Redin said.

“In summer, when consumed as a ginger beer, it really is fantastic.”

This is a view also held by Matso’s Brand Manager, Flora Lolev, who said: “Ginger beer is a great complement to the Australian climate and lifestyle.

“Born out of Broome and inspired by the balmy climate of our home, it’s amazing to see [Matso’s Ginger Beer] grow each year.”

Alex Bottomley, Director of Ampersand Projects, also emphasises the quintessential Aussie nature of this spicy offering, describing it as: “A classic Australian drink that has stood the test of time.”

The Stone’s brand is a testament to the staying power of ginger drinks, with the company able to trace its history to a London distillery in the mid-18th century.

“For a long time, Stone’s Original Ginger Wine was the ginger category, standing alone with very little competition or companion,” Redin said.

These days, there are multiple ginger drink brands for the spice-craving consumer to choose from, as Redin acknowledges.

“Stone’s has been the platform from which many of the new entrants have now sprung,” Redin said.

Matso’s is one such comparatively newer entrant, brewed for decades in comparison to the centuries of Stone’s. But today, with a slew of even newer brands jumping on the ginger train, Matso’s is beginning to look like one of the elder statesmen.

“Matso’s has been serving up our refreshing and zesty ginger beer for more than 21 years,” Lolev said.

“Initially, our ginger beer was only available at our home in Broome, but we were inundated with travellers falling in love with it and asking us to box it up and send it to their homes across the country.

“From those humble beginnings, we’ve grown to become the largest independent ginger beer brand in the country.”

Ampersand Projects’ foray into ginger beer is far more recent, with the drinks company only launching in 2018 and releasing the ginger beer SKU last year.

“Ginger Beer & is one of our newest products, and our first foray outside of spirits,” Bottomley said.

Ampersand Projects sees its ginger beer expression as a refreshing alternative to beer, that takes advantage of growing trends towards healthier alcoholic options.

“Ampersand’s Ginger Beer & is low sugar and gluten free, so it is much lower calorie than competitors, and more sessionable,” Bottomley said.

For Bottomley, the liquor retail sector has been vital during the launch of this product.

“It has performed really well. As an emerging category, support from retailer partners is crucial to help bring in new drinkers,” Bottomley continued.

Ginger beer vs RTDs?

It’s not just competition between new and established companies that is impacting the ginger drinks category, but encroachment on audience share from entirely different categories, including the irrepressible RTD market.

This is where Ampersand Projects can offer a unique perspective, as a producer that makes both ginger beer and light RTDs.

“Alcoholic ginger beer is growing rapidly, and is an exciting space to be playing in,” Bottomley explained.

“Whilst not anywhere near the size of the RTD category, it has a lot of potential over the next five years to take share from categories including cider, beer and dark RTD.

“The health and wellbeing trend is not going anywhere so products that can offer low or no sugar will be more attractive. This has clearly been a key driver of the huge growth in light RTD so naturally it will flow through to other categories. This is why we developed Ginger Beer & as a low sugar, lower calorie option.”

Meanwhile, Redin and Lolev believe that ginger beer offers something different to hard seltzers that are seemingly ubiquitous. They said this hints that consumers of ginger beverages are looking for flavour above all else.

“Matso’s Ginger Beer, and our entire range, is all about giving drinkers extraordinary flavour. That’s where some seltzers can fall short,” Lolev said.

Redin agreed and said: “Our research has shown that what ginger drinkers are really craving more than anything else is delicious gingery goodness (and sweetness) and the full flavoured hit that Stone’s Ginger Beer delivers.

“Hard seltzers are tending to look at the ‘wellness’ market, with lower ABV, carbs and sugar levels.”

As the category continues to develop, time will tell what drives the most success in the ginger sector, though it does seem that a

healthy coexistence between ginger beer, seltzers and traditionalRTDs is possible.

The future of ginger drinks

With such a long and illustrious past, what does the future hold for this historic drinks category?

Lolev is predicting greater creativity within the ginger beer sector, and noted: “I’m expecting there will be a lot of innovationin 2022.

“With consumers becoming more aware of what’s in the drinks they consume, lower sugar ginger beers will be popping up more and more. There’s also growing demand for gluten-free and vegan-friendly drinks – just like Matso’s Ginger Beer.”

Don’t count out the possibility of interesting and novel flavours making an appearance too.

“Ginger beer is the perfect base for experimenting with exotic new flavours,” Lolev continued.

“Our team at Matso’s has been busy experimenting with exciting new flavours that perfectly reflect the Matso’s DNA of helping people escape the ordinary.”

Lolev’s view is shared, in the long-term, by Bottomley, who said: “It’s a little too early for flavour extensions, but this will come eventually.”

Bottomley believes it is a shift to higher quality products that will drive the ginger drinks category over the coming years.

“As with all categories, quality liquid is key. Those brands that can deliver on taste and refreshment will succeed,” he said.

Stone’s, Matso’s and Ampersand Projects are all betting on the continued growth of the category over the next few years.

“We have invested heavily in the new Stone’s Ginger Beer, both from a product and packaging perspective, but also from a promotional standpoint, with the largest spend the brand has seen for many years,” Redin says.

Matso’s too is investing in the future of ginger beer, with the opening of new brewery in Eumundi, Queensland, later in 2022.

“Nationally ginger beer is growing at more than 50 per cent,” says Lolev. “It’s exciting times.”

Tips to spice up your store

Consider fridge placement:

• “Many consumers are moving into the space in search of a cider alternative. There’s a real benefit from placing ginger beer and other flavoured drinks in that area of the fridge.” - Flora Lolev, Matso’s

• “Create a clearly defined space on the shelf and in the fridges, put ginger drinks in a prominent spot.” - Matt Redin, Angove Family Winemakers

Educate drinkers:

• “Conduct regular tastings when allowed.” - Matt Redin, Angove Family Winemakers

• “Education is key as it’s such a new and emerging category.” - Alex Bottomley, Ampersand Projects

• “We know retailers know their clientele best. Here at Matso’s and Good Drinks, we’re always happy to help with that. So, if you want to know more about our products, or you’re interested in having us in store to run a tasting of our new range, please get in touch and let us know.” – Flora Lolev, Matso’s

Explore bold placements:

• “Floor displays or counter activations can pique consumer interest.” – Alex Bottomley, Ampersand Projects

• “We’re seeing a ginger beer cocktail display showcasing a Ginger Mule with vodka, or a Ginger Dark and Stormy with spiced rum, is also having great results.” – Flora Lolev, Matso’s

• “With the Stone’s range, retailers have the opportunity to build their very own ‘Gingerland’ and really drive the category.” - Matt Redin, Angove Family Winemakers