Drylaw, a UK-based producer of grape-based spirits, is set to launch a low-alcohol product as part of expansion plans that also involve targeting markets in the EU.
The company, founded in 2020, has started production within the last year after refining its distillation process.
It distills spirits from “fresh” grape musts and, so far, has produced a gin, vodka and brandy, with the majority of sales sold directly to consumers.
Drylaw has invested £5m ($6.3m) in a distillery in Kent in south-east England, which has a production capacity of ten million bottles per annum. So far this year, the company has produced 37,000 bottles but plans to grow that by 30% to just over 48,000 by the end of 2024.
Speaking to Just Drinks, founder and chemical engineer Federico Gulino said he is also working on a low-alcohol gin, which he expects to launch before the end of the summer.
“My idea is actually to change completely the way low-alcohol gin is manufactured,” Gulino said.
“Since we are doing small-batch vacuum botanical extractions, I can concentrate the botanicals to a point that if, I then dilute at 0.5%, I still have the equivalent grams per litre of botanicals that you will have in your traditional gin and tonic.”
In the meantime, Gulino outlined where Drylaw is looking to launch its existing range of alcoholic spirits.
“So we are going to launch simultaneously in a few weeks in Germany, and also soon Denmark and France. Now, we are partnered up with third parties to do the fulfillment for the e-commerce and we are planning to try to bring the same model in other countries,” Gulino said.
The Drylaw founder said the company would continue to focus on the e-commerce channel, which accounts for 80% of the business’ sales.
“We realised that the consumer has changed a lot during the past year, especially after Covid. We believe that that's why now is the best time to actually focus on e-commerce,” Gulino said.
On the prospect of future funding, Gulino said Drylaw it had recently completely its first and only funding round that took in £10m ($12.7m). “I'm not planning to do any other founding, because currently I can self-fund my operations.”
