While aperitif-style drinks have been perfectly placed to capture nearly every recent drinking trend, and with Italianstyle amaros enjoying a moment too, their cousins in the herbal bitters category haven’t necessarily had the easiest time. But there’s opportunity here, with strong brands continuing to do well, and with room for innovation, both in terms of positioning and new product development.

The high-energy occasions associated with brands such as category leader Jägermeister aren’t particularly compatible with the prevailing drinking trends of the past five or 10 years. As Spiros Malandrakis, industry manager of alcoholic drinks at market research provider Euromonitor International puts it: “The one leading in growth rates, and capturing the zeitgeist – sipping culture, aperitivos, and more relaxed settings of consumption and socialisation – all of that is encapsulated by Aperol, and away from the nineties and noughties era of high-energy consumption.”

But that’s not to discount those going against the grain, and perhaps exactly for that reason. “Jägermeister is still growing, even if it sometimes seems misaligned when it comes to the latest trends in nightlife. It still embraces this side of the on-trade that seems to be mostly forgotten by everyone else. It’s exactly this unique approach that provides a competitive advantage,” says Malandrakis.

What’s challenging, of course, is for brands like this to branch out into other settings or usage occasions. “It’s extremely difficult to make that transition after establishing something for decades,” he says. “I think Jägermeister has largely acknowledged that, which is why it seems to have doubled down in this high-energy space in the past couple of years.”

Euromonitor International places Jägermeister as the number one brand by volume in the bitters category for 2021, ahead of Aperol in second place and Fernet-Branca in third. It reports that the global bitters category is growing, with 2021 volumes exceeding prepandemic levels, and accounting for 42% of the broader liqueurs category. Value is growing more slowly, recovering from a decline in 2020, but not quite back to 2019 levels.

IWSR Drinks Market Analysis separates bitters – brands like Jägermeister and Ramazzotti – from spirit aperitifs such as Aperol and Campari. According to its figures, total bitters rose in volume by 4% CAGR 2016-2021, with the sub-category of amari increasing by 5%, compared with an increase of 8% for spirit aperitifs. Forecasts for CAGR 2021-2026 see bitters volumes, as well as those of amari, continuing to rise by 4%.

“The herbal category is very diverse and offers consumers unique and varied taste experiences,” says Michael Eichel, vice president global corporate communications for Mast-Jägermeister.

“We see more and more consumers in new markets such as South Africa and Latin America, as well as in mature herbal markets.”

Eichel confirms that the brand remains committed to its core consumption occasion, while remaining open to others. “We are still expanding our strong position in the shot consumption heartland, while exploring new occasions and new consumers who seek unique taste sensations,” he says.

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Czech brand Becherovka is in a similar position, according to Petr Polak, head of marketing CZ&SK for Jan Becher at Pernod Ricard. “As a very versatile brand, Becherovka is being activated and is benefiting from both main drinking occasions – as a shot, and as a cocktail base much appreciated by bartenders for its unique taste,” he says.

Becherovka is an example of the strength of brands within the herbal bitters category, often with long histories and loyal fanbases. “In our communication, Becherovka represents a timeless classic in an always faster-changing world,” says Polak.

Honesty and authenticity

Germany’s Schierker Feuerstein benefits from its brand’s credentials in a similar way. “As a regionally based brand in the Harz, Schierker Feuerstein meets the zeitgeist of consumers more than ever – they want honest, authentic regional products,” says marketing manager Julia Brökers.

Another brand with a loyal following, most notably in its hometown of Chicago, is Jeppson’s Malört – in spite of, or perhaps in part because of, its divisive flavour profile. “One of the reasons it’s popular is the constant search people have for brands that they can actually connect to,” says Tremaine Atkinson, chief executive and head distiller of brand owner CH Distillery. “Malört has that because it’s real – it’s never had a slick marketing programme. It’s also got Chicago written all over it, which Chicagoans love.”

CH Distillery acquired the brand about four years ago, and sales have tripled in that time, according to Atkinson. And there’s more potential, he believes. “We want it to grow, so we’re at a juncture here, trying to figure what next level of appeal it can have,” he says. “I think that lower-calorie serves, and not always as a shot, isn’t a bad way to go.”

While a significant amount of FernetBranca is consumed as a shot – when it’s not being mixed with cola in vast quantities in Argentina – the brand has seen success with cocktails too, according to brand manager Selina Raggett. “While the UK consumer is less accustomed to drinking herbal bitters neat, the popularity and growth of cocktail culture has proved to be a huge opportunity,” she says. “Consumers are increasingly enjoying premium cocktails both in and out of home, allowing a herbal bitter such as Fernet-Branca to be enjoyed in both classics and in original cocktails created by the on-trade.”

Anna McFarlane, UK brand ambassador for Angostura, which has its own herbal bitter, Amaro di Angostura, is seeing growing interest in the category in general. “In Edinburgh alone there have been at least two specific bitters bars opened in the past few years – Bittersweet and Hey Palu. So from a UK perspective, there is a certain buzz around the category.”

McFarlane sees the potential benefits for Angostura’s brand, and for the category in general. “I think the opportunity is to educate the consumer on the category, and it’s a great opportunity for Amaro di Angostura to benefit from the trend too,” she says.

While not entirely new – it was launched in 2014 – Angostura’s offering highlights the potential for innovation in the category, alongside products with many decades of history and tradition. The category’s major players have risen to the challenge in recent years, including Becherovka.

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“Our latest innovation is Becherovka Unfiltered, the ultimate expression of premium herbal liqueur, which we achieve by skipping part of the filtration phase of Becherovka Original,” says Polak. “We have multiple new innovations in our product development pipeline, and are always exploring and building on current and emerging consumer trends, such as the appetite for natural products, or consumption convenience on the go.”

The latest from Denmark’s Gammel Dansk aims to bring new consumers to the brand. Gammel Dansk Halvbitter tones down the original Bitter Dram’s distinctive bitterness and adds a touch of additional sweetness with honey and raw liquorice. The company also produces Gammel Dansk Shot with chilli and liquorice, also based on Bitter Dram and also toning down the bitterness.

When Schierker Feuerstein added to its portfolio in 2019, it had the aperitif moment in mind, while still aiming to remain true to its core product.

“Schierkuja tastes like passion fruit, but has its own character because of its genuine Schierker Feuerstein base,” says Brökers.

In Chicago, CH Distillers has taken inspiration from those who were ageing Jeppson’s Malört in a variety of barrels, and made an official version, ageing the original for a year in ex-bourbon barrels.
The brand also teamed up with local breweries during the pandemic to turn surplus beer into a base spirit for a special-edition Malört.

Attracting new consumers

Category leader Jägermeister has launched its share of new products in recent years too, such as premium offering Jägermeister Manifest, and Jägermeister Cold Brew Coffee Liqueur. New products like these help to bring new consumers into the category, as well as to strengthen the position of brands, and help them to tap into current trends. But NPD isn’t the only way to achieve this.

“We have a strong focus on recruiting new, young consumers – Gen Z – and on meaningful storytelling on social media and ATL. At the same time we invest massively in experiential marketing, driven by a strong demand for physical experiences, for instance with our Jägermeister Night Embassy,” says Eichel. “In parallel, we have taken our first steps into Web3/metaverse, and continue our strong engagement with nightlife communities, from first aid during the pandemic to providing safe spaces for freedom of expression.”

Malandrakis confirms: “Jägermeister was among the companies that really supported the on-trade during the bleakest days of the pandemic. It’s showing it’s not resting on its laurels, and continuing to keep in touch with this community. ”

Another brand that works closely with the on-trade is Fernet-Branca. “In the UK we have built awareness by driving advocacy through global activation initiatives, and supporting distribution and visibility across on-trade cocktail and shot menus,” says Raggett. “Fernet-Branca is popular as a shot with the on-trade, and has a special connection with the hospitality industry, supported through global activation such as The Barback Games and the yearly release of custom FernetBranca challenge coins.”

Herbal bitters might not neatly tick all the boxes when it comes to current drinking trends, but activity like this, alongside new products from established and new players alike, ensures that there continues to be a place for them.