The first and longest lasting trend of recent years is that consumers are drinking “less but better”.
This is great news for Scotch whisky as it is positioned and recognised globally as a sophisticated, premium choice for those who appreciate a product with heritage and quality at its heart.
As economies develop there is a need to consume imported products of all kinds.
But Scotch whisky typically takes advantage of the shift from domestically produced alcohol to higher quality imported products and the cachet that gives to the consumer.
Even within the Scotch category we have seen premiumisation on levels never seen before.
It is now quite common to see bottles of whisky sell for many thousands of pounds and we don’t expect this to change.
So, why is that happening and who is buying this whisky?
Single malt Scotch in particular is relatively scarce in a global context. It is also very highly regarded for its quality due to the strict rules that are upheld by the Scotch Whisky Association.
So, from a global perspective, this is a relatively rare drink and provides great confidence to drinkers, collectors and investors.
Yes, you read it correctly, many people now invest in Scotch whisky.
The returns that have been and continue to be delivered frequently outperform traditional investments.
Like all investments, nothing is guaranteed but at least if it does not work out you have a delicious whisky to share with friends and family or to quietly enjoy on your own by the fire.
How is Scotch standing up against all of the other nations that are now producing whisky or whiskey?
There have been remarkable advances in the spirit, both in terms of geography and quality.
It is said imitation is the most sincere form of flattery and it would appear this is definitely the case for our national drink.
I have tasted products from all over the globe, from Taiwan to Australia and from Sweden to Japan – and that’s before tasting the drinks from America and Canada.
Truthfully, there are some great products out there, but I believe that keeps Scotch on its toes, to keep improving and not rest on what we have.
Nobody likes to lose a competition and certainly not to a foreign competitor.
US product trumping Scotch in UK
So what of the domestic market? How do we value our national product?
Well, not very well as it goes, the biggest selling whisky or whiskey in the UK is American (Jack Daniels, according to international data & insight consultancy CGA) and mostly consumed with cola.
Gin or even rum continues to prove popular with the UK consumer, especially with a mixer, but whisky not so much.
The drink industry storybook will tell you the consumer never drinks what their mum or dad drank.
These days, that means vodka and Scotch have not been the choice of spirit since the 1970s – yes, 50 years ago.
What’s not to like?
So, could we be about to rediscover Scotland’s national drink?
This may even be in a new way, perhaps as they serve it in Japan as a highball or in a delicious cocktail, such as an Old Fashioned or Rob Roy.
The fundamentals are there for all to see – high quality, full of flavour, flexible to use and tremendous value. What’s not to like?
David King is sales director at Elgin-based whisky bottler and distiller Gordon & MacPhail.
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