“The sky is the limit”: Atom Brands ramps up expansion plans in travel retail

Craft spirits producer and distributor Atom Brands has set its sights on extending its footprint in travel retail with the aim of becoming a ‘one-stop-shop’ for craft spirits.

The UK company, which is based in Tonbridge, Kent, produces and exports gin, Scotch whisky and rum to over 40 different markets.

Ableforth’s gin and rum are main players in the Atom Brands travel retail portfolio

As reported, Atom Brands focuses on distribution in countries and channels “with an emerging and growing crafts spirit market”, making travel retail an “increasingly important channel”.

According to Atom Brands Global Travel Retail Manager Claire Keene, the company’s focus is on extending its footprint in airport stores

Atom Brands Global Travel Retail Manager Claire Keene said: “Our strategy for the next five years is to grow our current world presence through additional distribution hubs. We want to focus on airports for the next two to three years.”

Keene, who has over 13 years experience in the drinks industry after working locally and internationally for Diageo, Suntory and Rémy Martin, joined Atom Brands in January 2018. She was tasked with extending Atom Brands’ distribution network into travel retail.

Since then, Atom Brands has secured partnerships with Lagardère Travel Retail, DFS, King Power, Gebr. Heinemann and International Shoppes. Keene said other collaborations are in the pipeline.

Atoms Brands’ brands are currently available in Asia Pacific, the Gulf, India, Europe and North America.

The Atom Brands portfolio for travel retail includes Ableforth’s, That Boutique-y Gin Company, That Boutique-y Rum Company, That Boutique-y Whisky Company, Kyro, Wolfburn, Kinahans, Oxford Rye Vodka, Balcones, Kirk & Sweeney Rum, Pasote Tequila and New York Distilling Company.

Atom Brands is part of Atom Group, which includes Maverick Drinks and ecommerce platform Master of Malt.

The group was acquired by ZX Ventures, a division of AB InBev in April 2018, with its Founder Justin Petszaft, and his three business partners, and childhood friends, Ben Ellefsen, Tom McGuiness and Joel Kelly, continuing to run the business.

A theoretical physicist by training, Petszaft adopts a data-driven and evidence-backed approach to business. According to Atom Brands, Petszaft’s “passion for delivering uncompromising customer experience has seen him lead and develop Atom Group from humble beginnings to become a multinational drinks group that defies convention”.

Keene said Atom Brands plans to venture in the ready-to-drink market with new canned gin cocktails which would target the cruise market.

The company exhibited at the TFWA Asia Pacific Exhibition for the first time this year, intent on “shaking up” the travel retail spirits category with a range of innovative products.

A colourful line-up from the That Boutique-y Gin Company

Now, as a ‘disruptor’, Keene said, Atom Brands wants to shake up the travel retail channel.

“We strive to disrupt the channel at all levels with our spirit portfolio. All of our brands in our craft range have endless awards for quality as a bare minimum and are all made by hand,” Keene said.

“They also need to have an unusual difference in terms of taste and packaging to that of what is on the shelf. We only select the finest quality spirits with an incredible story for the consumer and package them in an awe-inspiring way.”

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Keene said Atom Brands’ strengths in travel retail included its minimum order quantities, an ability to move quickly on retailer exclusives, bespoke packaging and award-winning liquid quality.

“We are pushing to disrupt with first rate brands that deserve their place on shelf,” she added.

Keene said Atom Brands targets regional markets with local craft spirits. In North America it concentrates on American gins, ryes and whiskies including New York Distilling Company, Balcones Texas Single Malt, Pasote Tequila, Kirk and Sweeney Rum from the Dominican Republic.

In Europe the company features Kyro Rye Gin and Whisky, Slyrs Whisky, Abelforth’s Gins and Rums, That Boutique-y Gin Company, That Boutique-y Whisky Company, Wolfburn Single Malt Scotch, Kinahan’s Irish Whiskey and The Oxford Artisan Distillery ‘Rye Vodka’.

And in the Asia Pacific and the Gulf markets Atom Brands has introduced bespoke bottlings from That Boutique-y Gin Company, Sydney Gin and Dubai Gin, and single barrel whiskies from Japanese and Australian distilleries.

Keene underlined the “extreme importance” of limited editions and travel retail exclusive expressions, “given the two biggest motivations to purchase in travel retail is either a gift for friends and family or an indulgent treat to oneself”.

“Consumers are not going to buy what they always see in their local supermarkets; the product needs to answer to these two motivations.”

Looking ahead, Keene said “the sky is the limit” in craft spirits, with the market is set to grow by US$3 billion by 2025.

Keene predicts the 2025 market “may still look the same for the larger companies as it has done for the last 10 years”. However, she is adamant that smaller companies “will be responsible for the more interesting brand offers when it comes to spirit quality”.

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