ALDI bucks the premiumisation trend

With a $35 ALDI whisky recently winning double gold at the Melbourne International Spirits Competition, Naomi Kaplan explores the push and pull between premium quality beverages and the cheaper 'award-winning' versions found at Coles and ALDI.

A few months ago a $6 Coles red and $8 ALDI rose stole the limelight at international wine shows, and now ALDI spirits are making a splash.

A $15 ALDI gin has won gold at the International Wine and Spirits Competition, while a $35 ALDI whisky won double gold at the Melbourne International Spirits Competition. 

The Highland Black 8 Year Old Blended Scotch Whisky and the Oliver Cromwell London Dry Gin are challenging the conception that price equates to quality.

An ALDI spokesperson notes: “While we have the lowest prices in Australia, that doesn’t mean we skimp on quality. We have more than 500 award-winning products in store every day and have won more customer satisfaction awards than any other supermarket.”

Meanwhile, Head of Coles wine sourcing Bob Paulinski told The Australian: “A win like this shows that our exclusive wine brands can stand shoulder-to-shoulder with the best in the market, and is a testament to the incredible work our suppliers do in making these wines.”

So what's the story with cheap and cheerful options dazzling the experts when drinks companies are talking "premiumisation" as the big trend in booze?

Whisky's international praise

The Highland Black 8 Year Old Scotch Whisky has been repetitively celebrated for its high quality and low price. 

“This whisky is phenomenal for its price,” competition judge and founder, Adam Levy told News Corp.

“To get the double gold award, it means the spirit is in the top 10% of the whole competition.”

It’s not the first time the whisky has walked away with a top prize. It won a best-in-class master award at both the 2014 and the 2016 Scotch Whisky Masters, as well as a silver medal at the UK-based 2017 International Spirit Challenge back in May, which has been described as the “most authoritative” competition in the world.

Tony Baines, managing director of Aldi in the UK confirms that the whiskey's success is indicative that you don’t have to spend big for great taste.

"Our core range Highland Black 8 Year Old Whisky has always been a firm favourite amongst shoppers, owing to its high quality and fantastic value”, Baines told Nine Finance.

Although the gin and rose aren’t yet available in Australia, the whisky is available in selected Aldi stores in NSW, ACT and VIC.

Still room for a premium market

While cheaper beverages have received a lot of media attention lately, the leading drinks companies maintain there's a definite move towards consumers spending bigger bucks for a premium experience.

David Smith, Managing Director of Diageo Australia, notes that the company’s latest reserve portfolio reveals consumers are drinking less but are opting for premium quality options.

“Our premium brands are up over 10%. These are brands like Tanqueray Gin, the single malt whisky brands like Lagavulin and Talisker, Don Julio tequila and Ketel One vodka,’’ Smith told The Australian.

“We are seeing double-digit growth out of those brands because Australian consumers are drinking less, but better.”

Meanwhile, Forbes noted last year: "The term premiumization was coined sometime in the nineties to open a new door in the alcohol and beverage market, redefine top shelf offering, and provide a taste of the higher life for consumers.

"Nowadays, the trend has become a real game changer. It has introduced new production processes for wine and spirit making. It has even changed how we consume alcohol. According to Roy Morgan, we are opting for a single glass or two of a good drop, over a procession of the subpar.

"When people consider buying premium, they are looking for three things,” says International Commercial Director for Moët & Chandon, Bertrand Steip. “The first is brand authenticity and heritage, followed by the embodiment of a luxurious life, and finally the element of experimentation.”

So how does the buzz around budget booze brands at chains such as ALDI and Coles sit side by side with the industry's focus on premium brands? 

Jean-Noël Reynaud, CEO of Marie Brizard Wine & Spirits, told just-drinks he believes its about recognising that not all consumers are desperate (or, indeed, financially able) to trade up.

"We have answered a very simple question: What does the consumer want? It's true in any FMCG product, including alcohol, that the consumer wants a good product at a good price."