52 Beverage Dynamics • March/April 2014
www.beveragedynamics.com
Once a celebrated spirit, always a celebrated spirit. Scotch whisky reemerges with high-end expressions
that appeal to the next generation of enthusiasts.
The Sophisticated Spirit
"I
t's a new time, a new age, a new era for Scotch consum-
ers in the U.S.," said Brian Radics, Director of Scotch
Whisky, Diageo. "Not every category can say they're a
dynamic category right now but Scotch can say that."
With products at every price point, from the value-price to
a bottle of The Macallan that sold for more than $600,000 at an
auction earlier this year, the Scotch whisky cate-
gory is moving in an upward direction. "There's this
huge premiumization from the very top collectible,
rare bottles and that seems to trickle down all the
way through premium whisky," said David King,
president of Anchor Distilling.
As the economy improves, so does what consumers drink.
"The long trend of people drinking less but drinking better con-
tinues and I think single malt whisky in particular is benefi ting
from that," King offered.
For a product so steeped in history, Scotch whisky brands
realize they can't rely solely on premiumization for the new
generation of drinkers. Rather than skewing male and older in
age, the Scotch category crowd is becoming younger and not
as gender-specifi c. "Younger consumers are more adventurous
and are starting to incorporate brown spirits into their drinking
repertoire," said Jill Quady, brand manager for Cutty Sark.
Scotch brands are pushing the envelope when it comes to
innovation. "Super-premium brands, innovation in particular, has
been a huge part of not only Diageo Scotch but the category as
a whole," Radics explained.
Perhaps it's a result of that innovation that the
Scotch category is seeing so much success. That is
especially true among single malts. "It's where most
of the action is happening," King said. "Single malt is
incredibly dynamic." According to the Beverage In-
formation Group, the Scotch category gained 3.5%
in 2013. Carrying that growth were single malt Scotches, which
were up 9.1%, while foreign bottled brands grew 5.6%.
However, it's not so much about Scotch's volume but its
value. "One of the key things to pull out in the last year has been
the really strong growth of value over just volume, specifi cally
in the single malt segment," said Andy Nash, Scotch category
marketing director for William Grant & Sons.
The Scotch category's success is about more than case sales
and price increases. "It's not just about the prices increasing,"
"I "I "I "I
BY KATE
STRANDNESS
