Renais Gin, co-founded by siblings Alex and Emma Watson, is betting on its ability to disrupt the premium spirits market after receiving an infusion of £4.95 million ($6.2 million) in new funding this week.
The brand, which launched in 2023 and expanded to the U.S. market in 2024, has quickly garnered attention for its sustainable production and unique heritage—not to mention being a celebrity-backed spirits brand.
The investment, led by private equity firm InvestBev and spirits veteran Jean-Sebastien Robicquet, brings both financial resources and strategic muscle to Renais. With this backing, the company is preparing to expand into France, Spain, Dubai and Canada while deepening its footprint in the United States.
"We’re shifting our priorities to focus on sticking to our fundamentals and doing fewer things better," says Alex Watson, co-founder and CEO of Renais, via email. However, maintaining focus amidst rapid growth may test the company’s ability to deliver on its ambitious goals.
Renais touts its commitment to sustainability, using upcycled wine-pressed grapes as a base spirit and packaging its product in compostable materials. These claims align with growing consumer demand for environmentally conscious brands, but such practices are increasingly common in the spirits industry.
"Sustainability has become a natural byproduct of Renais," says Watson, who emphasizes the brand’s use of green energy and its recent B-Corp certification.
However, the use of upcycled grapes, while innovative, comes with limitations, including cost and scalability. Watson acknowledges the challenges: "We understand we’re not perfect, and this will be a constant conversation for us."
Overcoming Celebrity Skepticism
Renais also faces the hurdle of overcoming perceptions tied to celebrity-backed spirits. While Emma Watson’s involvement draws attention, the brand is aware that its association with Hollywood could invite scrutiny. Achieving credibility in a market dominated by entrenched players and emerging competitors will require more than star power and strong branding.
"The skepticism around celebrity-backed liquor brands is definitely understandable," says Watson. "We’re hoping to combat this by showcasing our family’s 30-year history in this industry and focusing on delivering a product that is so good that its credibility is beyond doubt."
Brian Rosen, general partner at InvestBev, echoes this view but offers a dose of realism.
"We don’t always love the celebrity angle, but we always love the good juice game,” Rosen says. “Flavor will always trump, and Renais is positioned with flavor, taste, marketing and quality.”
InvestBev’s involvement extends beyond capital. The private equity firm, known for its specialization in the beverage sector, provides portfolio companies with advisory services spanning finance, sales and marketing.
"Renais is now poised in the United States with not only capital but also strategic growth planning," says Rosen. Still, Rosen acknowledges the inherent challenges of the spirits business. "The challenge will be in supporting growth while maintaining quality and uniqueness."
This balance is particularly critical as Renais enters new markets. Watson highlights the need for a measured approach, prioritizing venues that can effectively tell the brand’s story over sheer volume. "I would always rather see Renais in places where the brand has the patience and understanding to tell its story," he says.
Beyond Spirits: A Lifestyle Pivot?
Renais has also ventured into the lifestyle space, debuting a limited-edition apparel collection in collaboration with luxury footwear brand Del Toro. While such moves are increasingly common among premium brands seeking to build broader cultural relevance, they raise questions about focus. Is Renais a gin company or a lifestyle brand?
Watson frames the partnership as an extension of the brand’s identity, but some may view it as a distraction. "The goal was to reimagine the brand and translate its DNA into something our fans could enjoy just like our gin," he explains.
As Renais prepares for 2025, the brand must contend with rising competition, shifting consumer tastes and the inherent difficulties of scaling an international business. Whether Renais can successfully carve out a place in the premium spirits market will depend on its ability to deliver a product that matches its global ambitions. As Rosen succinctly puts it, "The beverage business is hard, and it remains a relationship business."
In 2024, the U.S. alcoholic beverage market experienced notable declines across various categories. Data from the Wine & Spirits Wholesalers of America (WSWA) indicated a combined decrease of 6.0% in wine and spirits sales for the 12 months ending August 2024. Specifically, wine sales dropped by 8.0%, while spirits saw a 3.9% reduction.
The craft spirits segment, which had previously shown consistent growth, also faced challenges. The 2024 Craft Spirits Data Project reported a decline in sales for craft distilleries producing up to 750,000 gallons per year, marking the first downturn in nearly a decade.
Analysts attribute these declines to several factors, including economic pressures such as inflation, which have led consumers to reduce spending on higher-priced alcoholic beverages. Additionally, there is a growing interest in non-alcoholic alternatives. IWSR data indicates that the proportion of U.S. drinkers consuming no-alcohol products doubled from 6% in late 2023 to 13% in early 2024. No-alcohol beer volumes increased by 19%, and no-alcohol spirits surged by 38%, suggesting a shift in consumer preferences.
That said, the premium gin market might be a bright spot after all as the vertical is anticipated to grow from $16.7 billion in 2024 to $23.9 billion by 2033, exhibiting a CAGR of 3.69% during the forecast period.
“Gin has always been hot in the U.K.. In America, the time has come,” Rosen says. “There is vodka and tequila fatigue.”
For now, Watson remains optimistic but pragmatic.
"In 2024, there was a lot of uncertainty with major elections, challenging economic conditions and a bit of resetting in the spirits industry,” Watson says. “With some of this past us, I’m feeling very optimistic about the new year.”
