Johnnie Walker has been a category leader in both promotion and innovation. The Jane Walker variant, launched in March to promote gender equality, raised funds for She Should Run, a group inspiring women to run for office. Pop culture collaborations have included Blade Runner and . The Blue Label Ghost and Rare series blends irreplaceable “ghost whiskies” from distilleries that have long since closed; the latest is from the famed distillery of Port Ellen, shuttered in 1983. UP WITH BLENDS PREMIUMIZATION LIFTS BLENDED SCOTCH; PURE MALTS ADD TO THE MOMENTUM

BY DAVID LINCOLN ROSS

hile single malts have enjoyed much of the spotlight in recent decades, blends still rule Scotch volume in the U.S. And recent patterns are worth W watching. With an uptick in releases of cask-conditioned Scotch aged in Port or Sherry barrels, new bottlings of 12-, 15- and 18-year-old blends, plus a growing array pure malt offerings, premiumization is energizing the blended Scotch category in ways not seen in at least a generation.

For the first time in years, blended Merchants, too, see gains for pre- Scotch is on the rise, says Kevin Doherty, mium and above Scotch blends and Beverage Director at Tanner Smith’s, a pure malts. Calling attention to pure bar and restaurant located near Broadway blends is key to generating sales, says in New York. “Sales of pure malts or Hudson Funk, Manager of Hokus vatted malts are on the up and up. They Pokus Liquors, Alexandria, LA: “I fill a gap in cocktail bars where you want a promote blended malt Scotch when- single malt flavor without paying a higher ever possible; they’re maltier, more ap- price.” Tanner Smith’s features Pig’s Nose proachable and more affordable than and Monkey Shoulder, both at $15. many single malt Scotches.” Buchanan’s has developed a loyal following in the Yet there remain real challenges. Hispanic market; a 15 Year Old is the newest release. When total Scotch whisky imports in // Wemyss utilizes a “Nosing Panel” chaired by SCOTCH WHISKY 101 the U.S. dipped from 7.4 million cases industry veteran Charlie Maclean, author of eight in 2016 to 7.1 million in 2017, accord- books on the subject; then each whisky is labeled with a nickname that helps communicate its character. BLENDED SCOTCH ing to the Distilled Spirits Council, A blended Scotch is a mix of single malts single malts held tight at 2.1 from distilleries in any of the four princi- million cases; the decline came Vice President, Dewar’s, observes: pal regions—Speyside, The Highlands, from blends. Yet within that dark “When you take this premiumiza- The Lowlands, Islay—and the addition cloud, a silver lining is emerging: tion dynamic and combine it with of neutral grain spirits, which must also an uptick in the premium and the current continued brown be distilled in . THINK: Johnnie super-premium sub-categories, spirits renaissance across all whis- Walker Red, Ballantine’s, Dewar’s, Chi- says Shefali Murdia, Brand Di- kies—North American Whis- vas Regal, Grant’s, J&B, Teacher’s. rector for , Pernod key, Scotch, Irish, others—it is Ricard USA. “It is promising to abundantly clear that blended BLENDED MALT SCOTCH see the ‘Premium and Above’ Scotch is well positioned to A blended malt—also known a vatted malt or pure malt—is a mixture of price tier growing [+1.5%], grow through numerous bright different single malt Scotch whiskies. which clearly represents a growth spots of untapped opportunity.” THINK: Mackinlay’s Shackleton Blended opportunity for Chivas.” USA’s Johnnie Walker Senior Malt, Johnnie Walker Green Label, Scotch marketers add that blends at Brand Manager Sandhya Padmanabhan, Eleuthera by Compass Box, Famous all price points are well positioned also sees evidence of greater consumer Grouse 10 Year, Chivas Brothers Century to capitalize on broader whisky interest in Scotch blends, which Monkey of Malts, Weymss “The Hive.” trends. Brian Cox, Bacardi’s Shoulder’s has revealed the strength of name “Monkey Creole” brands in the category: “While SINGLE MALT SCOTCH features ginger ale the blended Scotch category has and three types of A single malt Scotch must be distilled bitters. lagged in industry growth, Johnnie at a single distillery. THINK: Ardbeg, Walker remains leader of the pack, Bunnahabhain, Glenfiddich, Glenlivet, maintaining consistent growth and a Glenmorangie, Dalwhinnie, Talisker. steady performance.” And when one looks at the growing importance of Latin/Hispanic demograph- ic, Buchanan’s Senior Brand Manager ‘Es Nuestro Momento,’ Buchanan’s saw its Tara King, also of Diageo USA, is likewise largest share gain in 14 quarters.” upbeat: “Buchanan’s has experienced con- Viewed from a global perspective, tinuous growth in the past 10+ years. More blended Scotch sales are poised for a recently, since the launch and continued welcome worldwide rebound. Eileen Liv- momentum against its powerful campaign ingston, Senior Director Scotch, Interna- BARRELING AHEAD

he recovery is on clear display: A growing array of pure, vatted, aged, malt and traditional whisky blends crowd merchants’ shelves and trendy back bars. Here T are a few that have attracted consumer interest.

Edrington launched a Launched in 2000, The company also re-packaged Naked Compass Box Peat purchased more than Grouse Blended Malt Monster ($56) has 100 acres in central (SRP $36) in 2017, also developed a Scotland to develop aimed at “older growing following. a second maturation Millennials.” Naked This pure malt is from facility, complement- Grouse is matured in the village of Port ed by the planting of Oloroso sherry oak Askaig in Islay, with 100,000 indigenous casks. some south coast trees. Islay whisky too, and vatted Since 2015 Frederick with Ardmore; matured in Buchanan’s recently Wildman and Sons American oak casks. added Buchanan’s has beefed up its Select 15-Year-Old blend and pure malt Wemyss (pronounced as a permanent offerings with Pig’s Weemz) uses the taste and addition to the Scotch Whisky tourism broke records in 2017, Nose ($26), Sheep aromas of the individual portfolio, joining registering 1.9 million distillery visits, led by whisky lovers from Germany and the U.S. Seen here, Dip ($38) and The whiskies to identify each bot- 12-Year-Old Wemyss, which opened their Kingsbarns Distillery Feathery ($52). tling, almost like nicknames, Deluxe, 18-Year-Old and Visitor Centre in 2014. so consumers can more Special Reserve, Buchanan’s William Grant & Sons’ easily understand the style Master and Buchanan’s Red tional Marketing, Beam Suntory, says of Monkey Shoulder ($32) has being purchased. Wemyss Seal. The new 15YO took also scored gains within the produces both single malts home Double Gold medal Teacher’s and the overall Scotch market; blended malt segment since and blended malts; blends at the 2018 San Francisco “For the first time in five years, blended its launch in 2012. include “The Hive,” “Spice World Spirits Competition. Scotch is returning to growth in 2017 King” and “Peat Chimney.” (+0,7%); expecting to further grow +2% Johnnie Walker Chivas Regal “Ultis” pays in the future (CAGR 2016-2021) led by Double Black ($35) has Bacardi Limited is invest- tribute to its past, present and Premium and Blended.” energized Diageo’s ing $250 million in Dewar’s tradition, using five brisk “Keep Walking” to meet growing demand. of the brand’s most MILLENNIAL MATTERS march of innovation; Redevelopment of an existing precious As Millennials represent the largest it joined the label’s site in Parkhead, Glasgow, single malts from drinking demographic segment, courting expanded line of includes five new maturation Speyside, a region them seems natural, although they are Red, Black, Gold, warehouses, a new blend famed for its notoriously resistant to overt marketing. Green and Blue center, new bottling lines microclimate ideal Pricing comparisons help, notes Steven brands in 2011. and new packing equipment. for whisky-making. Rubin, owner of Boston’s Huntington Wine & Spirits. “Millennials are drinking less, consumption is down and bourbon has definitely cut into blended Scotch,” says Rubin. “While it’s hard to promote entire Johnnie Walker range. Doyle adds Johnnie Walker Black, simple syrup to Millennials, [we] put vatted, pure and that even though blended malts may cost and fresh-squeezed lemon juice ($24). blended malt Scotch brands right next to a bit more than a standard blend, “pure The bar also stocks Dewar’s ($17) and the store’s single malt shelves, so custom- blended malts fit in nicely to the store’s Red Label ($16). ers can see the price advantage.” Scotch section and most Millennials are With classic cocktails humming along Smart merchants also recognize the willing to spend a little more.” and premiumization and innovation en- importance of staff training and tasting. Blended Scotch cocktails remain livening the category, Scotch blends and At Pop’s Wine & Spirits, Island Park, NY, “very popular with our customers,” says pure malts are far from “on the rocks” Manager Victor Doyle applauds the Dia- Sharif Nagaiya, bartender at Bemel- these days, and savvy retailers and bever- geo team and its distributor, Empire Mer- mans Bar at the Carlyle Hotel in New age pros should look forward to profiting chants’ United division, for hosting a ses- York City. He adds the best-seller is the from these brands, especially during the sion in which the staff tasted through the house Whiskey Sour, which features upcoming holidays. ■