THE Eden Mill drinks business aims to double turnover for a second year running, to £5m, after winning approval to start selling its gin in the USA as it launches a push for growth in China.
The St Andrews based craft brewer and distiller has been cleared by federal regulators to sell its gin in 30 states including lucrative markets such as California and New York.
Chief executive Paul Miller reckons the judgement could pave the way for Eden Mill to win significant business in the gin market in the US, where a number of distributors have already placed orders.
He believes success in the US could help the firm maintain the rapid growth rate it has achieved after winning a following in countries such as Germany.
Founded in 2012 by Mr Miller and a Glasgow businessman, Eden Mill increased sales to around £2.5m in the year to March, from £1m in the preceding period helped by its success in overseas markets.
Mr Miller, who has worked for distiller Glenmorangie and was head of brewer Molson Coors in Scotland and Northern Ireland, expects Eden Mill to start selling gin in the US in June.
This will help the firm capitalise on the interest in Scotland that will be generated by the Open golf tournament, which will be played on the Royal Troon course in Ayrshire in July.
However, Mr Miller noted: “The really exciting thing for us is the Far East and what’s going on there in exports.”
He said Eden Mill has been delighted by the response it has had since launching its gin in China three months ago.
The launch came after drinks giants including Diageo and Pernod Ricard reported a drop in sales of Scotch whisky in China amid a slowdown in growth and an official crack down on the giving of expensive gifts.
But Mr Miller said the company’s experience suggests that there is still very strong interest in western brands in China, where a new class of affluent consumers has developed amid the expansion in the economy in recent years.
Eden Mill has targeted this market by launching its gin through classes in upmarket hotels in big cities including Beijing, Shanghai and Guangzhou.
Mr Miller said the company expects to grow sales in China to around 2,000 bottles a month this summer from a standing start.
He said drinks firms should not let the short term blip in the Scotch market in China obscure the huge long term potential of the China market.
Middle class consumers in China are showing the same interest in products that have a craft, or artisanal provenance as their peers in the west.
There could be opportunities for small and medium sized enterprises in Scotland to win a big following in China by harnessing the potential of social media.
Noting that people want to know more and more about products and their backgrounds, Mr Miller said:
“Previously you needed huge market budgets but with the advent of social media the opportunities for brands that are on trend are significant to get their message across.”
Eden Mill has set up a Mandarin language social media platform to promote its products in China.
Mr Miller is also targeting growth for the gin in the UK. The company has recruited a distributor to sell the gin in England and Wales. It had relied on selling online previously.
Eden Mill has generated strong interest in the blended whiskies it has been selling while it waits for the malt whisky produced at its Guardbridge site to mature.
Mr Miller has been pleased with sales of the company’s beer, which has done well in China.
Eden Mill has made the new distribution arrangements ahead of moves to increase production capacity at its base. This is on a site on which the Haig family produced grain whisky between 1810 and 1860.
The company has 36 employees compared with 23 this time last year.
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