Why is craft gin so expensive when it’s sold immediately after it’s been distilled? | By Huon Hooke
The current craze for craft gin has me puzzled: why is it so expensive when they can sell it immediately after they’ve distilled it? Is this a scam?That’s one interpretation. Gin, like vodka, can be sold as soon as it’s distilled since there’s no maturation period, unlike brandy or whisky. By law, Australian brandy and whisky must be matured in oak for at least two years.To be fair, there’s more to gin production than there is to making vodka.
Botanicals are the signature of the gin, and often the recipe is a well-guarded secret. They can be added during the distillation or afterwards, depending on the fragility of the ingredient and the desired result. Flowers, for instance, could be damaged in the still whereas cinnamon and cassia can be boiled up in the pot with everything else. More delicate botanicals can be added as the vapour passes from the still to the condenser, and some even later, after the distillate has cooled.
So there’s more to producing gin than vodka, but less time needed than for either brandy or whisky. And time is money.The pricing strategy of any product includes a consideration of “what the market will bear”. If $70 is the standard price for a bottle of craft gin, that’s what distillers will use as their base price. A gin-maker might charge more for specialty bottlings, but they’re unlikely to go lower since that would be like giving money away.
In the UK, there’s currently a revolution in sparkling wine and the prices are on par with those of Champagne, the region which has been producing the world’s most famous sparkling wines for 300 years and has built its fame and prices over many generations. England is a johnny-come-lately: is its sparkling wine a scam?There are good arguments in favour of parity pricing.
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