Whiskey in full flow
The Irish whiskey segment has enjoyed phenomenal growth in travel retail during recent years, but is continued expansion assured in the current economic conditions? David Davies finds out
As the numerous new offers, special products and exclusives arriving regularly on shelves clearly indicate, whiskey continues to be the target of a phenomenal level of activity and development in travel-retail. Within this particular spirits category, many producing nations have enjoyed a sales boost in recent years, not least Ireland.
Jameson, Bushmills, Kilbeggan, Connemara, Wild Geese… The list of prominent Irish whiskey offers is, if not endless, extremely lengthy. So, too, is the number of variations and special editions created by many producers for their most successful offers. The accessibility and appealing taste of many Irish whiskeys is arguably the most important single factor in explaining their current success.
In the light of the current decline in passenger numbers and a decrease in consumer spending
power, Frontier wanted to assess the mid- to long-term prospects for Irish whiskey in travel-retail, and began its investigations by speaking to Irish Distillers Pernod Ricard – home to the undoubted market leader, Jameson.
‘Taste and rich heritage’
A ubiquitous presence in travel-retail stores worldwide, Jameson has a heritage stretching back to the 1780s. Rather more recently – in 1988 – the brand became part of the Pernod Ricard family, since when it has continued its global ascent, supported by new editions, special formats and other initiatives.
Recent launches include the latest addition to the Jameson Reserve Range – the travel-retail exclusive Jameson Signature Reserve – along with a 200ml Jameson Reserve tri-pack, containing Jameson 12yo Special Reserve, Jameson Gold Reserve and Jameson 18yo Limited Reserve.
Outlining the measures that Irish Distillers Pernod Ricard is taking to raise/enhance the profile of Jameson in this channel, senior regional manager travel retail Michael Cunningham highlights the launch of the Premium Reserves range and the continued roll-out of “distinctive merchandising units” in airports to showcase the full Jameson range.
The USP of the Jameson brand, says Cunningham, is its “taste and rich heritage in a market where consumers are seeking affordable luxury brands with substance and authenticity.”
Looking ahead, Cunningham appears confident about the continued development of the Jameson brand and Irish whiskey in general. “Irish whiskey has been one of the fastest-growing spirit categories in travel-retail for a number of years with Jameson driving the category growth. Currently, in the context of declining passenger numbers, Jameson is proving very resilient, and we are confident of continued market share growth.”
‘Huge potential for growth’
Similarly convinced of Irish whiskey’s long-term potential for further growth is Diageo, which added the Bushmills brand to its expansive brand portfolio four years ago.
“We are confident that there remains huge potential for growth and that the category can develop an ever-stronger personality and presence, particularly through communicating the heritage and provenance of such a great brand as Bushmills,” says Marco Ruggeri, marketing manager for Bushmills at Diageo GTME. “Our commitment to the category is underlined by the fact that, since acquiring Bushmills in 2005, Diageo has invested over £6 million in the brand, including £1.5 million investment in refurbishing and expanding the famous Old Bushmills Distillery and the addition of its tenth still.”
In terms of travel-retail, the Bushmills offer is led by “core focus” Bushmills Original, along with Sherry cask aged Black Bush and limited edition product Bushmills 1608, the last-named item launched in 2008 to mark the 400th anniversary of the first license to distil in the area around the Old Bushmills Distillery. Diageo is also continuing to enjoy success with the aged single malt variants Bushmills Malt 10yo, 16yo and 21yo.
The 400th anniversary year saw record sales of Bushmills, and Ruggeri says that the brand is well-positioned for further growth in travel-retail “as it has strong stand-out from rivals” in terms of the brand’s very long history and also “the accessibility of its distinctly smoother taste and its more rounded, deeper depth of flavour. The consumer recognises those qualities as do the experts, [as illustrated] by its success in the New York Times’ tastings (World’s best Irish whiskey, March 2006).”
In moving ahead, the Bushmills brand will be assisted by a range of “scaled executions” for travel-
retail that encompasses a full concourse bar, tasting tables, point-of-sale branding and more.
“Whatever the activity, our focus is centred on driving awareness, footfall, consideration and conversion for the brand and the category,” says Ruggeri, who adds that summer 2008 saw Bushmills’ first ever cross-brand, cross-category promotion in global travel-retail.
Summarising his views on the Irish whiskey segment, Ruggeri believes that it constitutes “a great introduction for consumers to the overall whiskey category. Bushmills Original is the perfect entry point, and the breadth of the Bushmills portfolio provides a range of options for consumers to develop further appreciation of the category. We are fully committed to the future of the Bushmills brand and, with new Bushmills packaging under preparation, we are ensuring that the brand is set for the next 400 years.”
‘The door has opened’
The strength and diversity of the Irish whiskey segment is indicated by the room it affords not just for global giants like Pernod Ricard and Diageo, but for considerably smaller players. Cooley Distillery – Ireland’s only independent whiskey distillery – has lately registered considerable success in travel-retail with a portfolio that includes blended whisky Kilbeggan, single grain whiskey Greenore and peated single malt Connemara.
“The door has opened,” declares Cooley Distillery marketing director Jack Teeling. “Historically, Irish whiskey has been dominated by one or two brands, but we are now finding that a lot of duty-free operations are […] looking at ways to expand the category in view of the increased sales and the growing interest by consumers in sampling different expressions of Irish whiskey. The category is definitely evolving.”
Emphasising the company’s determination to enhance its existing presence and distribution in travel-retail, Teeling sounds upbeat about the prospects for Cooley and the overall Irish whiskey segment. “There is real possibility for smaller players to do interesting things, and I think that bodes very well for the future of this category,” he says.
So, far from stepping back and concentrating purely on existing offers and market strongholds in light of the wider global challenges, Irish whiskey producers remain bold, dynamic and eager to press ahead with new ideas. Indeed, creativity appears to be at an all-time high. The diversity of Irish whiskey offers is bound to increase still further in the years ahead, as is the importance of the overall segment to the global travel-retail whiskey market. If that’s not good reason for a celebratory drink or two, then it’s hard to know what is.
Meanwhile, across the pond...
Of course, it is not just Irish brands that are enjoying strong growth in the whiskey category. Many other nations’ whiskey products are registering impressives sales increases in travel-retail, not least those that hail from Canada.
Quality and craftsmanship have long been associated with Canadian whisky, whose blends are often rooted in a smooth and accessible blend of corn and rye. Ontario-based Wiser’s is one of the leading Canadian producers and highlights the increasing success of Canadian whiskey in the travel-retail industry. Accordingly, says a company spokesperson, “there is definitely a lot of opportunity for Wiser’s in this channel, especially when considering the more premium brands within the Wiser’s family. Wiser’s is the oldest continuously produced Canadian whisky, being 152 years old, and is considered to be the authentic, full-flavoured Canadian whisky. As such, it makes a fantastic gift or keepsake for travellers.”
Product-wise, Wiser’s DeLuxe and Wiser’s 18 Year Old have historically been the company’s strongest sellers in travel-retail. Looking ahead, there are plans for the possible launch of a super-premium Wiser’s whisky exclusive to the channel within the next 12 months.
The spokesperson offers a few tantalising details: “Known as Wiser’s Legacy, it has been produced from the last recipe that founder J.P. Wiser ever wrote, one that due to his passing [he] was never able to produce. Receiving a score of 92 from the Beverage Tasting Institute of Chicago in 2009, it tied Wiser’s Red Letter as being the highest-rated Canadian whisky in the Institute’s history.”
Useful Links:
www.bushmills.com
www.cooleywhiskey.com
www.jamesonwhiskey.com
www.wisers.ca
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