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Single malt Scotch whisky has long leveraged its historical mystique to burnish a reputation as one of the drinks industry’s most prestigious categories. But while paying tribute to the spirit’s storied past, key players are now updating their marketing approach to reach a new generation of single malt consumers—and extend the category’s strong upward momentum.
“The category as a whole is at a crossroads,” says Brian Cox, director, Scotch whisky at Diageo North America. “What has doubled single malts to 1.5 million cases in 2016, up from 750,000 cases in 2008, is not what will drive the category to 3 million cases while maintaining premiumization levels. It’s key that we not abandon what has proven successful to our growth, lest we lose a strong and super-premium base, but we need to develop new tactics to recruit new consumer segments.” Diageo has about an 8% share of the U.S. single malt category by volume, according to Impact Databank, with most of its offerings priced above $60 a bottle, skewing toward the high end.
Cox says Diageo’s “My Tales of Whisky” digital and social initiative featuring popular comedian Nick Offerman “is a great example of our traditional substance and more dynamic and contemporary form. This new approach helps us to recruit new consumers, be they within the ‘Millennial’ or ‘Gen X’ segments, and ultimately allows us to continue to trade consumers up into our higher-end Classic Malts.”
Diageo’s Lagavulin malt from Islay, featured in the Offerman series, is among the key brands driving double-digit growth for the company in the single malt space. Lagavulin has released two limited editions this year—an 8-year-old ($65) and a 25-year-old ($1,200)—as part of its 200th anniversary celebration. Portfoliomate Oban, from the Highlands, is also on a steep rise, with its Little Bay expression ($75) showing increasing momentum. The Talisker and Dalwhinnie brands are likewise among the company’s best performing single malts lately. Oban, Lagavulin, Talisker and Dalwhinnie combined for about 90,000 cases in the U.S. last year, according to Impact Databank.
“Our single malt brands continue to perform well across the board in major markets including the ‘Acela corridor’ between D.C. and Boston, with New York and New Jersey in particularly strong growth along with Florida, California and Texas,” says Cox. “The Pacific Northwest is also an increasingly dynamic market.”
This holiday season, Diageo is courting both single malt aficionados and novices with new releases. Its annual “special release” whiskies for 2016 include a 37-year-old Port Ellen ($4,000), a 38-year-old Brora ($2,200) and a 40-year-old Cambus single grain ($1,150) among others. Meanwhile, the company has also launched a new Singleton of Glendullan malt featuring 12-year-old, 15-year-old and 18-year-old expressions, which are aged primarily in Bourbon casks. “The Singleton of Glendullan fills a gap for us in the $30-$50 range,” Cox notes. “We believe it will quickly gain traction.”
•Whisky Advocate has named Amrut Spectrum as its World Whisky of the Year. Amrut Spectrum is 50% abv and retails at £100 ($127) a bottle. Whisky Advocate is announcing its annual award winners from across 11 different whisky segments one day at a time on its blog through December 19. The awards will culminate with the naming of a Lifetime Achievement honoree on December 20 and the Distiller of the Year announcement on December 21.
•California’s Infinium Spirits has expanded distribution for Kerrygold Irish Cream liqueur to 36 states. The 17%-abv blend of Irish cream, oak-aged Irish whiskey, Irish spirits and chocolate—which is owned by Ornua, Ireland’s largest dairy exporter—has added 20 states to its distribution footprint over the course of this year. In 2017, the brand ($25) will also be featured in a new “Made for this Moment” campaign. Kerrygold came to Infinium in May. It was previously handled in the U.S. by Marie Brizard Wine and Spirits America.
•Irvine, California-based G.K. Skaggs has been named the exclusive U.S. importer of the Philippines’ Emperador brandy. In the first quarter of 2017, G.K. Skaggs will launch Emperador and Emperador Light (both $15 a 750-ml.) in major markets around the country. Emperador is controlled by Chinese Filipino billionaire Andrew Tan’s Alliance Global Group. It’s the third-largest spirits brand worldwide at 33.5 million cases, according to Impact Databank, deriving much of its volume within the low-priced Philippine brandy market. Emperador also owns the Whyte & Mackay Scotch whisky portfolio—including the Dalmore and Jura single malts, which are imported by E.&J. Gallo in the U.S.—and recently partnered with Gonzalez Byass to acquire Mexico’s Domecq brandies from Pernod Ricard.
•Ventura, California-based Surf Brewery is releasing a Belgian-style White IPA ahead of the holiday season. The 7%-abv winter seasonal is brewed with Belgian yeast strains and is hopped in a West Coast style. The new White IPA is available on draft and in bottles throughout California. Surf Brewery’s lineup includes Mondo’s Blonde Ale, County Line Rye Pale Ale, Foam Board Tart Blonde Ale and Surf Seasonal Beet Red IPA, among others.
•San Luis Obispo, California’s SLO Brew is rolling out its core lineup in cans and on draft starting this month. The company is opening a new brewing facility that features a canning line and 30-barrel system, as well as a tasting room. SLO Brew’s The Original (5% abv), Reggae Red (5.6% abv), The Wave Wrangler (4.8% abv) and Cali-Weisse (5.4% abv) will be available year-round in 12-ounce cans and on draft, with distribution initially focused on California’s Central Coast.
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