Luxury brands thrive in tough retail market

Jostling for room in the crowded luxury brands space has been a pivotal part of the success of small Australian distillery, Four Pillars Gin.

The Yarra Valley distillery only launched onto the market four years ago, but achieved sales of $8 million last financial year. Strong growth in exports and local sales on the back of new distribution points puts next year’s projections at closer to $10 million.

Four Pillars has four core products, which range between $75 and $100 a bottle. Despite strong sales, co-founder Stuart Gregor insists there’s considerable room for growth in the domestic market, saying that the luxury market presents a number of opportunities.

The brand has partnered with a number of established luxury brands, including Marriott Group and Duty Free shops at key airports, which places Four Pillars alongside high profile brands such as Penfolds Grange. Export sales are also strong.

More than 90,000 people will pass through the distillery doors this year. One third of these are tourists. “It would be very rare if they didn’t purchase a bottle or two of our gin while they’re here,” Gregor says.

“We make an extraordinarily good product. Our gin fits easily among the best in the world. Luxury goods have taken themselves a bit too seriously. We’re serious about the gin we make, but we’re also serious about making this a fun business.” Read more