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Whisky report: For peat's sake -
New styles are injecting excitement into the Scotch whisky market, reports Mark Ludmon
The recession, higher duty and the inevitable rise of vodka may have had an impact on Scotch whisky sales in the UK but that has not curbed innovation and investment in the category. Derek Scott, head of marketing at Burn Stewart Distillers, notes: “We all face the challenge that blended Scotch is not a huge category, particularly in modern outlets. The onus is on the suppliers to provide something special and to tell a story that provides bar owners and bartenders with a reason to believe in whisky.”
For Burn Stewart, this includes a sampling programme for Black Bottle and focus on the brand’s “unique point of difference” as a blend of seven Islay malts. A new partnership with Wray & Nephew has opened up access to top bars through bartender training and cocktails as well as gaining new listings for its other brand, Bunnahabhain, which is unpeated and therefore less challenging than other Islay single malts.
A new ad campaign for Pernod Ricard UK’s Chivas Regal is targeting the blended Scotch at younger men aged 25 to 34, typically living in major UK cities, says Patrick Venning, head of marketing for whiskies. He adds there is no diktat on how it should be enjoyed – neat, on the rocks or mixed – which is also the approach of First Drinks Brands’ Monkey Shoulder. It has been targeting men aged 24 to 40 through a brand experience at events such as the Big Chill festival this summer, focusing on the triple malt Scotch’s mixability in cocktails.
Bartender education helps venues to improve margins from whisky, explains Bob Dalrymple, senior brand manager for Maxxium UK’s Laphroaig. “Bartenders can use the on-trade environment to encourage trial of higher styles among customers who express an interest in whisky, pointing out that they do not need to invest in a whole bottle to try it. This would result in a higher profit opportunity for the bar while ensuring increased satisfaction for the consumer who will feel like they have discovered something new and added to their drinks repertoire.”
The major brands have tapped into the opportunities for trading up such as The Black Grouse, launched by Maxxium UK last year and boosted by new packaging and sampling. James Pennefather, whisky brand director at Diageo GB, says a redesign of Bell’s Special Reserve this year strengthens the higher style as “a great option for regular customers who are looking for something a little more special and provides an accessible way to trade up to a more premium blend with a brand they can trust”.
Simon van Moppes, commercial director for spirits at Pernod Ricard UK, says that bartenders and brands need to overcome consumers’ nervousness about whisky. “It is one of those areas where there’s a lot of mystique about it. A lot of people find it a bit daunting and don’t know what to order which is where the bartender comes in.” He adds that Chivas Regal is “an easy way into whisky” because of its smoothness.
However, a core of connoisseurs continue to be catered for. Dalrymple admits that Laphroaig is a “challenging” whisky with a rich smoky flavour which has made it the number-one Islay malt. “Laphroaig has a loyal following of whisky drinkers who love the quality and the heritage associated with the brand. They are drinkers who have enjoyed a ‘malt’ journey to one of the most complex, richly flavoured whiskies of all. Laphroaig’s challenging taste profile can be a talking point at the bar which can act as an incentive for customers to try it.”
In May, Ardbeg released Supernova, described as the “peatiest whisky ever produced by the Islay distillery”, which sold out all 3,000 preview bottles in 112 minutes through online sales. The company keeps in touch with connoisseurs through its Ardbeg Committee of loyal customers, who again welcomed the August release of Ardbeg Corryvreckan, an equally complex and powerful whisky.
Scott at Burn Stewart says one of the selling points of many single malts is the small volumes available. “From a marketer’s perspective, it gives us an opportunity to market it as something very precious,” he explains. Last year, Burn Stewart ran out of the limited-edition Tobermory 15 Year Old from its boutique distillery on Mull until a second batch was released in June this year.
While Diageo is best known for its global blended whisky brands J&B and Johnnie Walker, it has 28 single malt distilleries in Scotland. Last month, it released the first batch of six limited-edition malts in its new single-cast collection under the label of The Managers’ Choice. Depending on the size of the cask and the rate of evaporation, the volume of bottles obtained can vary between about 600 and as little as 200. Nick Morgan, spokesperson for Diageo’s Classic Malts Selection, explains: “We have occasionally issued single-cask bottlings of individual single malt whiskies before – for instance for visitors to the annual Islay Festival – and single-cask bottlings of our malts can sometimes be obtained from independent bottlers. But this is a much more ambitious venture – the most extensive collection we’ve ever released of single-cask malt bottlings from 27 of our operational malt distilleries, involving both the well-known and those whose product isn’t widely available.”
Other large drinks groups have been extending their range with limited-edition single malts. Earlier this year, Maxxium UK launched an 18 Year Old for Laphraoig, expecting its appeal to be high among malt connoisseurs and collectors, while in July First Drinks Brands released the first batch of Glenfiddich 50 Year Old, making only 50 of the total 500 bottles available each year.
Last month, Cellar Trends unveiled the first of an annual series of limited-edition single malts from Speyside’s Glen Grant, called Glen Grant Cellar Reserve. It also began distribution of the new Bowmore Tempest, a small-batch release of only 2,000 cases from the Islay distillery.
In July, another Speyside distillery, The Balvenie, released a 17-year-old single malt finished in Madeira casks – the latest in a series of six 17-year-old limited-edition releases after last year’s The Balvenie RumCask. Highland Park, which has defied trends by growing sales by over 80 per cent over the past four years, added to its portfolio last month with an intense 12-year-old cask-strength single malt, Hjärta – meaning “heart” in Old Norse, capturing the historic bond between Scandinavia and the distillery’s Orkney home.
More excitement has been added to the category by Scotch-style whiskies from other parts of the world, such as Wales’s Penderyn single malt and blends from Japan including Nikka and Suntory’s Yamazaki, Hibiki and Hakushu.
This month sees the release of the second bottling of Smokehead Extra Black from Ian Macleod Distillers, building on the success of last October’s first batch. This extension to the Islay single malt brand, launched in 2006, establishes its longevity alongside Smokehead’s positioning for mixing in cocktails, says marketing director Iain Weir. “We are definitely tapping into a younger audience of 25-plus as well as very much looking after those that are just interested in a very good whisky.” Ian Macleod is also targeting high-end bars with its Chieftain’s range of single malts for connoisseurs, most recently extended with a 40-year-old from Campbeltown’s Springbank distillery.
Weir says Ian Macleod remains upbeat about the UK whisky market despite the challenges. “We are continuing to have a good year this year. We still feel there’s a strong premium market out there, and there are opportunities for trading up. The whisky market is not as strong as it was but I think it will strengthen going forward as we come out of recession.”
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