Why is gin so expensive?

Answered by Charles Pate

As an expert sommelier and brewer, I have had the opportunity to delve into the world of and explore the intricacies of their production processes. When it comes to , there are several factors that contribute to its relatively high price compared to other spirits like . Let's take a closer look at these factors.

1. Botanicals: One of the primary reasons for the higher cost of gin is the use of botanicals. Unlike vodka, which is typically made from neutral grain spirits or potatoes, gin requires the addition of botanicals to impart flavor. These botanicals can include a wide range of natural ingredients such as juniper berries, coriander, citrus peels, spices, herbs, and more. The use of high-quality, natural botanicals can significantly drive up the price of production.

2. Production Process: The production process of gin is more complex compared to vodka. While vodka can be distilled multiple times to achieve a neutral flavor profile, gin requires a unique process called “compounding” or “distillation with botanicals.” This involves infusing the base spirit with the selected botanicals and then redistilling it to capture the flavors and aromas. This additional step adds to the production time, labor, and cost, resulting in a higher price for gin.

3. Aging: Some premium gins undergo aging in or casks, similar to whiskies. This aging process can add depth and complexity to the flavor profile of the gin but also requires additional time and storage space. The cost of aging, including the barrels themselves and the opportunity cost of tying up inventory, contributes to the increased price of aged gins.

4. Craftsmanship and Artistry: The production of gin often involves a level of craftsmanship and artistry, particularly in craft or small-batch distilleries. These distillers may focus on using traditional methods, carefully selecting and blending botanicals, and paying attention to every detail of the production process. This dedication to craftsmanship and the use of high-quality ingredients can command a higher price tag.

5. Branding and Marketing: As with any premium product, the branding and marketing efforts behind a gin can also influence its price. Well-established gin brands with a strong reputation and marketing campaigns may justify a higher price point due to their perceived value and market demand. The costs associated with building and maintaining a brand can be reflected in the final price of the product.

6. Limited Availability and Exclusivity: Some gins may have limited availability due to small production runs or being produced in specific regions. This exclusivity can drive up the price as it becomes more sought after by collectors and enthusiasts.

To sum up, the production process, including the use of natural botanicals, the complexity of production, potential aging, craftsmanship, branding, and limited availability, all contribute to the higher price of gin compared to vodka. These factors combined make gin a more labor-intensive and artfully crafted spirit, which is reflected in its price.