Why have whisky brands remained so popular?

Dark spirits are experiencing a global renaissance. Rum is premiumising, Cognac is the envy of all in global travel retail and whisky continues to be very interesting.

Whisky is fascinating because the category is so multi-faceted – it’s micro and it’s macro, it’s whisky and it’s whiskey. The category is no longer tightly tied to Scotland, over 20 different countries are producing it. Plus the steady growth of global travel retail (growing at 12% a year since 2009), and the rise of the middle class in Asia, South America and Africa have changed who consumes it.

Scotch whisky has enjoyed strong global growth over the last decade, with total value of exports up 74% since 2004 and single Malt up 159%, meanwhile whisky sales in the US have overtaken vodka. Whisky has been at the right place at the right time, a lot of things have gone in its favour. Bigger trends around craft, premiumisation and revivalism have naturally come to the category and have helped fuel a cultural shift in perceptions and attitudes.

In western markets, mixology trends and mainstream pop culture have been very kind to whisky. A revival of bartending as a craft, plus TV shows and films, like Mad Men, Boardwalk Empire and The Great Gatsby have all introduced classic American serves and golden age cocktails to new audiences, while giving whisky brands the ability to contemporize and modernize with credibility.

Relevant during the recession

It takes years for perceptions and attitudes to change, and now that Don Draper has poured his last splash of Canadian Club, it seems appropriate to reflect on why whisky brands have continued to remain popular, even during the recession.

Firstly, whisky offers broad appeal and broad usage. Unlike most spirit categories, whisky offers drinkers substantial spectrums of price range and taste profiles. These spectrums are populated with brands that range from the local artisan to the big, reliable staple; all of which are great for gifting, seen as a luxury recessionary treat and able to comfortably play in the on-trade craft trend of revivalism.

Within both the off-trade and on-trade, whisky is able to answer varied international perceptions. For example, in Western mixology led markets whisky is cool, whereas in Eastern and Latin American markets, whisky still strongly symbolizes luxury and status.

From a practical business view, profitability has come from an increase in No Age Statement (NAS) products. Major players in both Scotch and Bourbon have removed age statements from certain labels and/or introduced NAS whisky alongside their traditional age-specific products. Brands have done this in an effort to keep whisky affordable as stocks are depleted, yet it also aids clever portfolio planning.

The whisky category is set-up with clear stepping stones, a drinker can enter a brand with a blend, NAS product or flavour variation and over time make their way through the brands age-statement products. Many whisky brands structure their portfolio like this and it works well because the drinkers’ journey is more about discovery than blunt status.

Appealing to younger drinkers

Several brands have already done great work to open up this route of discovery to a younger generation. They have found success with products that make it easier for them to enter the category, such as flavour extensions that appear accessible and exciting – for example Ballantine’s Brasil, a citrus-and-vanilla-flavoured Scotch whisky.

Some have given younger drinkers the ability to enjoy whisky on their own terms. For them, whisky is not solely sipped in silence, it’s mixed, it’s a shot and it’s part of high-energy drinking occasions. To be legitimate in this new landscape, brands need to be open to experimentation and find ways to contribute to the night out.

Lastly, to appeal to a younger generation, brands need to be mindful of only targeting men. Young women are drinking whisky and they have grown up in a time where whisky isn’t so gender specific.

Looking forward

The recent funding of Whisky Investment Direct shows that industry experts are confident that whisky sales will continue to grow. When new brands launch there is a lot to consider and successful marketing managers tend to use strategies that understand the importance of ‘new news’ – finding new ways to make whisky interesting. ‘New news’ could come from stories, heritage or provenance.

On this side of the Atlantic, John Glaser, another former Diageo director, spotted an opportunity and started Compass Box in 2000. The company does not distil any of the whiskies used in its blends. It’s a clever business position that allows them to pick the best and then frame interesting stories around the products, giving each of their editions an added layer of personality.

Over in the US, Buffalo Trace tells authentic heritage stories that never appear dull or dated. They’ve done this especially well at the premium end of their range, by naming brands after figures that were important to the distillery and the development of bourbon, for example Blanton’s Single Barrel, the E.H. Taylor, Jr. Collection and Stagg Jr.

News can also come from celebrity associations. Whisky brands are using celebrities in different ways – Mila Kunis is helping Jim Beam attract millennials (who aren’t all male), while Beckham is embedded in Haig Club. Although Haig Club heavily leverages Beckham, they’ve also smartly created intrigue by reframing single grain Scotch. Most American and Canadian whiskeys are grain whiskies and single grain Scotch has existed for decades, yet Haig Club has made it feel new by comparison.

Finally, a strategy that isn’t completely new, but allows for discovery, is to tap into existing memory structures and create a twist on a trusted brand. Gentleman Jack, Jack Daniel’s Tennessee Honey and Tennessee Fire (soon to be released in the UK) show the power of this.

Whether you’re running a big brand or looking to launch a new one, the whisky category is an exciting place to be. From craft innovations, to flavour extensions and the premiumisation of big brands, there are a lot of things going on that are sure to keep whisky popular for years to come.

Abbie Wood is the group account director at Cubo, an integrated creative agency.