Premium positioning: how to price your spirits brand for success?
Branding
In spirits, price isn’t just a number. It’s a signal. It tells distributors, retailers, and consumers who you are, how confident you are in your story, and what kind of future you’re building. For bold scale-up brands, getting pricing right is one of the most strategic choices you’ll make.
A misplaced price can stall your momentum before it begins. A well-chosen one can open doors, elevate perception, and build long-term value.
The shifting landscape of premiumisation
According to a 2024 IWSR study the past two decades, premiumisation has powered much of the growth in global beverage alcohol. But the picture is evolving. Growth at the “Premium” tier (roughly $22.50–$30.50 in U.S. retail terms) is slowing, squeezed by both inflationary pressure and trading-down in some markets.
At the same time, Super Premium+ spirits ($30.50 and above) continue to grow—and have done so consistently for over 20 years. This tier is where younger legal-age consumers, women, and Millennials are spending more, often in categories like U.S. whiskey, tequila, and emerging craft
spirits. These consumers may drink less, but they drink better. Premiumisation, in other words, is no longer a broad-based trend. It’s shifting upward.
For scale-up brands, this shift is an opportunity: it’s less about trying to compete in the crowded mid-tier, and more about building confidence at the upper end, where discovery, scarcity, and story drive pricing power.
Why consumers pay more
Premium pricing works when it feels justified in more than one dimension. Today’s spirits consumers, especially those driving growth in Super Premium+, are looking for more than a functional product. They pay more because:
Scarcity signals value. Limited editions, small batches, or terroir-driven sourcing create urgency.
Design creates desire. A striking bottle and visual identity not only catch the eye but also set the stage for gifting and display.
Story builds meaning. Origin, craft, and authenticity connect emotionally and culturally.
Lifestyle alignment matters. Consumers increasingly buy brands that reflect who they are or aspire to be.
When pricing is integrated with story, design, and positioning, it stops being a barrier and becomes a magnet.
Global differences in premium thresholds
The meaning of “premium” changes by market. A $40 bottle of gin in London signals one thing; in Madrid, it signals another. Understanding these nuances is essential for scale-up brands.
Japan : Premium spirits often thrive in the context of gifting. Packaging, presentation, and symbolism carry as much weight as the liquid itself.
Nordics : In monopoly markets like Sweden or Norway, tenders often favor well-positioned premium brands that can justify a higher price through story and category logic.
United States : The cocktail renaissance, especially at home, continues to push consumers toward trading up. Super Premium+ whiskey and tequila are leading growth.
Southern Europe : While heritage categories dominate, pricing sensitivity is higher. Here, volume growth may depend on finding the right balance of accessible luxury.
The lesson: premium is not universal. It’s contextual.
Common pitfalls in pricing
Even bold brands stumble when it comes to price. The most common mistakes include:
Undervaluing early. New entrants often price cautiously, aiming to “earn” their way into premium. But starting too low makes it harder to shift perception later.
Chasing volume with discounts. Heavy discounting may spike short-term sales but erodes long-term brand equity. Consumers remember where you landed, not where you started.
Copying competitors. Pricing at parity with a rival may feel safe, but without your own positioning logic, it can look like following, not leading.
Forgetting perceived value. Price without a strong story, design, and activation to back it up risks rejection. Even if it’s mathematically sound.
How to set the right price?
The art of premium pricing lies in balancing market data with brand ambition. Consider:
Competitive laddering. Where do you sit relative to direct competitors, adjacent categories, and substitutes?
Consumer willingness to pay. What occasions and rituals justify your price? Is it positioned for a cocktail bar, a gift, or a home bar hero?
Testing formats. Smaller bottles, gift packs, or limited releases can validate premium positioning before scaling core SKUs.
Global benchmarking. A $50 bottle of tequila in New York may translate differently in Tokyo or Berlin; anchor your pricing with cross-market insight.
When to adjust?
Premium pricing isn’t static. It evolves with your brand journey. The launch price sets perception; later adjustments can build aspiration. The key is to adjust deliberately, not reactively.
Prove value first. Before climbing price ladders, show velocity and consumer pull.
Scale carefully. Growing volumes doesn’t mean lowering price. Instead, reinforce premium cues through packaging, limited editions, and on-trade activations.
Avoid erosion. Resist the temptation to discount deeply to gain distribution. Once price perception slips, it’s difficult to reclaim.
The Russell&Stellar perspective
At Russell&Stellar, we see pricing not as a math exercise but as part of the story. It’s about positioning your brand in a way that signals ambition, attracts the right consumer, and earns distributor belief. The right price tells the market you belong at the table and the right strategy ensures you stay there.
Ready to set your price with confidence?
Pricing can either anchor your growth or accelerate it. If you’re deciding how to position your brand, let’s build a pricing strategy that signals ambition and sets you up for long-term success. Contact a Russell&Stellar for a free consultation.
