Tauranga gin wins top London award, draws export interest

Clarity Distilling Company's Clarity Navy Gin was the highest-scoring gin at the International Wine & Spirit Competition in London, prompting interest from overseas buyers.

The Tauranga-based distiller and online retailer said the gin received 99 points and a Gold Outstanding medal. Since then, it has received enquiries from consumers and distributors in the US, UK, Australia and India as it weighs export options.

Clarity sells through its own online store, as well as online retailers, bars, restaurants and liquor stores across New Zealand. Founders George White and Stephanie Downer said the recognition could help shift the business from a small domestic operation to a larger export model.

White said the company is not yet exporting despite the recent interest.

"We have had enquiries go through the roof almost overnight. People in the United States, the United Kingdom and Australia are contacting us directly asking where they can buy the product, and we are having to explain that we are not exporting yet. That tells us there is real demand if we can put the right distribution in place, and a window to capitalise on this momentum if we can move quickly.

"For a small New Zealand producer to be competing against some of the most established spirits brands in the world and come out with this level of recognition is a significant moment for us," said George White, Co-founder, Clarity Distilling Company.

Whey base

Clarity Navy Gin is made using ethanol derived from grass-fed New Zealand dairy whey. White said that sets it apart from most gin, which is typically made from spirit derived from grain, molasses or cane sugar.

The alcohol base is sourced from regional suppliers and comes from casein whey, a by-product of milk processing. The whey contains lactose, which is fermented before the ethanol is recovered through distillation and concentrated.

White said few spirits producers use casein whey as the feedstock for ethanol production. He said the ingredient gives the gin a distinct identity in overseas markets, where New Zealand dairy already has an established reputation.

"The locally sourced whey in our base spirit gives the gin a texture and softness that people notice, changing the mouth-feel of the product and giving us a point of difference in markets such as the United States, where the grass-fed New Zealand dairy story is already well understood and highly regarded.

"Most gin globally is built on a grain or sugar-based spirit. We are starting from a very different raw material, and we think that is one of the reasons international judges are responding so strongly to the product.

"New Zealand has spent decades building a reputation around grass-fed dairy and clean food production. We are taking that same story into premium spirits," said White.

Export plans

Clarity said it is in discussions with overseas importers, including a Mumbai retailer with more than 70 stores. White said India is a target market as the company looks beyond New Zealand's comparatively small, seasonal gin market.

He linked the interest from India to improving access for New Zealand products.

"India is a huge opportunity. It is the fastest growing spirit market in the world, and the FTA has definitely helped open the door to a consumer base we may previously have struggled to access. We are talking about a market where one city can be several times the size of New Zealand's entire population.

"The trade agreement has created momentum and confidence around New Zealand products entering India, and we are hoping we can be part of that wave," said White.

The company is operating at about 5% of production capacity, leaving room to increase output if it secures a distribution agreement in export markets.

White said any significant overseas deal would require more staff in production, logistics and eCommerce fulfilment.

"Right now we are operating at only about five percent of our capacity, so we are able to scale quickly if we can secure the right distribution agreement," said White.

Building scale

Downer said the business remains founder-led, with the pair still handling distilling, bottling, labelling, packing and dispatch. She said export growth could turn the operation into a larger regional manufacturing and online retail business.

"George and I are involved in every part of the process at the moment. We distil, bottle, label, pack orders and send them out ourselves," said Stephanie Downer, Co-founder, Clarity Distilling Company.

The latest result adds to a run of awards for the distiller, including Double Gold at the San Francisco World Spirits Competition for Clarity Dry Gin, and Gin of the Year and Spirit of the Year New Zealand at the London Spirits Competition for Clarity Navy Gin. Domestic distribution has also widened across New Zealand retail and hospitality channels.

White said overseas markets matter because sales patterns differ by hemisphere, giving the company a way to balance demand through the year.

"The New Zealand market is important to us, but it is small and seasonal. We want to expand into northern hemisphere markets as well. When it is winter here, it is summer there, and that gives us the ability to smooth out demand across the year," said White.

Downer said the award showed that a young local distiller could compete internationally.

"We started as a small Tauranga distillery and in three years we have achieved recognition across San Francisco, London and the International Wine & Spirit Competition.

"The challenge now is to leverage this international recognition and build Clarity into a New Zealand export success story that creates jobs, drives regional growth and takes Bay of Plenty craft spirits to the world," she said.