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Chivas Brothers cashes in on Far East thirst to post 23% sales rise

The Glenlivet whisky barrels.
Chivas Brothers' operations include The Glenlivet, made in Ballindalloch on Speyside. Image: Shutterstock.

Heavy Far East appetite for top end Scotch whisky has seen Chivas Brothers turn in half-year organic net sales up 23% for 2022.

The period covers July to December 2022 and saw what Chivas terms its “prestige portfolio” up 28%, with Ballantine’s Prestige range growing 81% owing to increased demand across Asian markets and global travel retail (GTR).

That Far East taste for top-notch Scotch saw Korea, Japan and Taiwan up 59%, 53% and 37% respectively, while Brazil, Colombia and Mexico posted increases of 40%, 30% and 21%.

Whisky stills.
Pernod Ricard owns The Glenlivet, Aberlour and Chivas Regal whiskies. Image: DCT Media.

In European markets, Spain rose 17% and Poland 7%, while separately North America increased by 6%.

Chivas Brothers is French multi-national Pernod Ricard’s business dedicated solely to Scotch whisky.

Its portfolio features single malt and blended Scotch whisky brands, including Chivas, Ballantine’s, Royal Salute and The Glenlivet, which are exported from Scotland to more than 100 countries worldwide.

‘Continued drive to open up the category to new audiences’

Chivas Brothers’ chairman and CEO Jean-Etienne Gourgues, commented: “These positive results reflect the impact of our long-term portfolio elevation and premiumisation strategy.

“It’s a testament to the resilience of Scotch, its bright future and our continued drive to open up the category to new audiences.”

Chivas is the world’s number two Scotch whisky producer, employing 1,600 people across 26 sites. This includes distilleries in Moray and Highlands and its historic Strathisla Distillery in Keith.

One potential cloud on the whisky horizon however, is the Scottish Government’s consultation document: “Restricting alcohol advertising and promotion,” which sets out why it wants to cut down the industry’s ability to market itself in order to “reduce the appeal of alcohol to our young people.”

Chivas-Brothers-Chairman-and-CEO-Jean-Etienne-Gourgues
Chivas Brothers chairman and CEO Jean-Etienne Gourgues. Image Chivas Brothers.

The swingeing set of measures might see booze put out of sight in shops as tobacco is today, while paper and online advertising could be severely curtailed along with alcohol visibility at sporting events.

Some in the industry have slammed the ideas as “damaging” and having a significant knock-on effect for suppliers.

But more than 100 firms which produce alcohol – including Chivas Brothers – signed an open letter to Holyrood ministers, saying: “Don’t destroy Scotland’s drinks industry.”

Clothing as ‘walking billboards’

The letter signals the companies’ concerns surrounding the new potential restrictions that the Scottish Government is consulting on.

Alcohol producers from across the country spoke out against the proposals with signatories also including Belhaven, Brewdog, Pernod Ricard, The Macallan and Molson Coors.

The consultation runs until March 9.

Measures could even include prohibiting the sale or distribution of alcohol-branded merchandise including T-shirts, jackets and baseball caps as well as branded glasses and mugs, with clothing in particular singled out as “walking billboards.”

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