Move over non-alc spirits, there’s a new contender for shelf space at your local bottle shop: mid-strength spirits.

What’s a mid-strength spirit? Regular spirits such as whisky, gin and vodka generally have an ABV higher than 40%, while mid-strength spirits hover around the 20% mark. While their ABV is lower, they aim to offer the same mouthfeel, intensity and flavour of their full-strength cousins.

Craft distillers in the UK and US have been dabbling in the space for the past few years, but now Diageo is dipping its toe in the water. The drinks giant just released mid-strength versions of its Captain Morgan spiced rum, Gordon’s gin and Smirnoff vodka brands in the UK.

The three 20% ABV ‘spirit drinks’ – they can’t officially be called spirits because their ABV is too low – have an RRP of £15 (around $28 Australian dollars) and aim to tap into the moderation trend.

“Health, wellness and affordability are all driving forces behind moderation behaviours such as zebra striping … and coasting, where drinkers switch to lower-ABV options over the course of an occasion,” Diageo said.

“Additionally, we’re seeing the growth of earlier, more relaxed get-togethers, creating a space for mid-strength options to provide consumers with the choice of lighter, longer serves.

“The 20%-ABV range … is designed to create a new space between existing alcohol categories, combining the familiarity of some of Diageo’s best-known brands with a proposition that reflects the increasingly flexible way consumers approach alcohol.”

However, as Hendrick’s Gin creator Steven Grasse noted on LinkedIn: “I’m not sure this makes sense to me. I mean, why not just mix less regular proof rum in your drink with more coke? Or add more tonic and less gin?

“I think there is definitely a need for lower-proof spirits … but I’m not sure this is the way I would do it. I would come up with a unique story and a unique liquid.”

Global Signals Strategic Advisor Andrew Dremin said the real driver behind the mid-strength push was the UK duty structure.

“Dropping alcohol below 22% ABV cuts excise duty by about £4.30 per bottle, plus VAT. That gives Diageo and the retailer a massive margin cushion.

“Even if mid-strength cannibalizes 10% of standard Gordon’s sales, Diageo makes more cash margin on every cannibalized bottle as long as the retail price stays above £12. From a pure P&L perspective, cannibalization is a feature, not a bug.

In my consulting work with retail and FMCG clients, we often discuss the danger of over-stretching master brands. Gordon’s and Smirnoff built their multi-billion reputation on predictable, full-strength utility.

“At 20% ABV, standard home mixing breaks down. Pour a standard 50ml with tonic and ice, and the drink tastes thin and watery. Drinkers will naturally pour doubles to get the taste they expect, burning through the bottle twice as fast.

“Trial in the 250 pilot stores will be high. But category success is measured on repeat purchases.

“When the novelty wears off, do shoppers stay for the mindful lifestyle or do they feel they paid full price for diluted liquid?”

Noosa entrepreneur launches mid-strength spirit range

Tahli Watts launched ENOUGH last year, Australia’s first range of mid-strength spirits, including vodka, gin and agave at 22% ABV.

“I wanted to create something that fits into real lives and helps people make healthier choices without missing out,” Watts said.

“ENOUGH is not about restraint, it’s about balance. It’s for people who love a cocktail but also love waking up clear-headed for a surf, a school run or a gym session.”