If you’ve spent any time perusing the aisles at your local liquor retailer, you’ve probably seen the word “premium” used to describe a bottle of booze. Most often used to refer to vodka (though other spirits use it as well), premium is a bit of a mystery. If you’re looking for an official definition, you might be out of luck.
Just like “small batch” in the whiskey world can range from a handful of barrels to thousands, premium doesn’t seem to have clear-cut rules.
In my years of writing about alcohol, I’ve seen the term adorning bottles of liquor and as a buzzword on sales sheets and press releases. But what exactly does it mean?
What does “premium” mean?
In the simplest terms, the word “premium” as it relates to alcohol casts a wide net. There’s a lot going on behind that term.
“What it normally represents is a spirit that is different and therefore ‘better’ in some way, and one that commands a higher price than your typical ‘bottom shelf’ offerings due to its unique characteristic, whatever that may be,” says Thomas Bard, Secretary and Treasurer for American Craft Spirits Association and founder and distiller at the Bard Distillery.
Premium might seem like a very vague term, but some industry groups once sought to define any bottle over $20 as premium and over $40 as super premium.
“That was when I was first getting into the business,” says Colin Spoelman, ACSA Board of Directors and co-founder of Kings County Distillery.
“I work mostly in whiskey, so if that is the threshold, then most of the conversation is happening around super premium spirits—indeed anything under $50 tends to be accessible, maybe mid shelf offerings from the established companies.”
The term began when products started appearing on shelves that weren’t the same old, everyday ones. Instead, they were expressions that promised a new, elevated drinking experience.
“ Today, it is mostly used to describe artisanal or ‘craft’ products, where just a bit more attention was given to produce a product worth the extra expense,” adds Bard.
When is the term used?
The term “premium” is normally used when describing a spirit that is more than just a “cheap pour” or simply an ingredient for a cocktail.
“Premium spirits propose to offer a unique flavor, an interesting process, or a good story,” says Bard.
“These spirits are considered a step above the ‘normal’, everyday spirits. This may be due to being an older spirit with more complex flavor, or it could be due to the unique methods used to make that spirit. Scarcity or limited production often plays a part in the premium status, which is why craft spirits quickly fall into the ‘premium’ category.
Are there any real definitions?
Spoelman says that the Distilled Spirits Council puts out a report that, at one point, divided the spirits landscape into these categories (it may be why the word resonates more with the established companies).
“Still, these don’t quite correlate to a layman’s idea of premium, and very few regular consumers would accept that definition,” he adds.
“As a rule of thumb, ‘premium’ spirits are those that command a retail price of about $25 and higher (for distilled spirits, at least) in a standard size bottle, which is around 750ml,” says Bard.
Is it more of a buzzword or does it have substance?
Since the general public doesn’t really have a definition of “premium,” it seems to mean different things depending on who you’re talking to.
“For folks who normally just get a standard offering from one of the big producers from lower down on the shelf, anything above about $25 is ‘premium’ to them,” says Bard.
“For someone who usually buys their alcohol from the middle shelf or higher, or has always gravitated towards an older or more craft-oriented spirit, you’d have to get above $50 a bottle or higher before they consider it to be in the ‘premium’ category. The word has a different meaning depending on where the consumer is starting, but it still translates as offering more than what they’re used to.”
