Global market review of malt whisky – forecasts to 2015

Total malt Scotch sales fell by 4.8% in 2009 to 6.1m nine-litre cases, as the global recession took hold. This drop reversed the prior five-year performance of 2% CAGR growth.

The impact of the recession was most pronounced in the more developed Western markets. The recession was characterised by a shift from on- to off-premise consumption. Although the malt category isn’t as on-trade developed and focused as other categories, the fact that the on-trade was down did have some impact on volumes. Destocking was also a factor in the first half of 2009. The important travel retail channel, the third-largest malt market, was also hard hit as global travel declined, with the business traveller segment being particularly hard hit.

Ian Macleod Distillers' managing director Leonard Russell believes the economic problems have led to polarisation within the market. “As a company, we have benefited from polarisation of consumer demand whereby affordable luxury whisk(e)y at the top end has seen some growth. A general trading down from standard brands to more competitively priced Scotch whiskies and own-labels has been prevalent.”

Nevertheless, the long-term outlook is very positive. This report forecasts that total malt sales will rise by 14.7% between 2009 and 2015 to reach 7m cases.

This latest report from just-drinks/IWSR provides a complete market analysis of the global malt whisky sector, offering an expert review off the markets, brands, categories and companies.

Latest consumption volume data includes actual 2009 volumes, with all data tables trending from 1999 to 2009/2015. Coverage includes the top ten companies' and brands' volumes in each major market and region, and overall volumes globally and by region and major market.

In-depth interviews with the following major players provide unique and candid opinion that enhances the analysis:

• Beam Global Spirits & Wine Scotch brand director
• Bushmills’ global brand director
• Campari CEO
• Chivas Brothers' brand director for malts
• Chivas Brothers' chairman and CEO
• Chivas Brothers' marketing director
• Cooley Distillery sales and marketing director
• Dewars' global brand director
• Diageo’s global head of Whisk(e)y, Gins and Reserve brands
• Diageo's Scotch Knowledge and Heritage director
• Duty Free Americas liquor purchasing manager
• Edrington director of malts
• Glenglassaugh managing director
• Ian Macleod director Americas, Africa and Europe
• Ian Macleod Distillers’ managing director
• Morrison Bowmore CEO
• Suntory marketing director, whisky
• The Nuance Group Europe buying and merchandising director
• Whyte & Mackay global sales and marketing director
• William Grant & Sons' global marketing director

The report looks at the recent performance of the malt whisky sector, then discusses the scope of the market, analysing the following key trends and topics:

• Market drivers
• Room for growth?
• Industry structure
• Role of innovation
• The move into super luxury
• The comparison of young versus mature markets
• Future of blended malts
• Age statements
• Inventory situation
• Future competition

The report provides detailed analysis of the major markets' recent performance including coverage of:

• United States
• United Kingdom
• Germany
• Switzerland
• The Netherlands
• Russia
• Spain
• France
• Taiwan
• China
• Japan
• South Korea
• India
• South Africa
• Travel retail

A couple of appendices round off the coverage looking at new regulations and major production moves in the industry.

Market data is provided for the following brands:

• Aberlour
• Ballantines
• Balvenie
• Bowmore
• Bruichladdich
• Caol Ila
• Cardhu
• Classic Malts
• Dalmore
• Famous Grouse
• Glen Deveron
• Glen Grant
• Glen Moray
• Glen Turner
• Glenfarclas
• Glenfiddich
• Glenmorangie
• Glenrothes
• Heritage Scotch
• Highland Park
• Isle of Jura
• Johnnie Walker
• Knockando
• Laphroaig
• Loch Lomond
• McClellands
• Prime Blue Scotch
• Spey
• Speyburn
• Strathisla
• The Glenlivet
• The Macallan
• The Singleton
• Tomatin

Use this report to:

• understand the size and scope of the market
• know what's driving the trends within the sector
• hear what the leading brands' latest thinking is
• see where the future lies for the sector

Read more about this report with just-drinks' research article here

Table of contents

Chapter 1 Recent performance

Chapter 2 Scope of the market
Market drivers
Headroom for growth
Industry structure
Role of innovation
Move into super luxury
Horses for courses
Future of blended malts
Age statements
Vox pops
Inventory situation
Future competition

Chapter 3 North America market performance
United States
Rest of Americas
Canada

Chapter 4 Europe market performance
United Kingdom
Germany
Italy
Switzerland
The Netherlands
Russia
Spain
France

Chapter 5 Asia market performance
Taiwan
China
Japan
South Korea
India
Other markets: South Africa

Chapter 6 Travel retail market performance
Appendix 1 New regulations
Appendix 2 Major production moves

List of figures
Figure 1: Glenfiddich: The world.s largest single malt brand
Figure 2: The Balvenie has a more esoteric positioning
Figure 3: Glenfiddich.s new advertising campaign rolled out late last year
Figure 4: The Macallan: success in Asia
Figure 5: Smokehead is an attempt to make the category more contemporary
Figure 6: Singleton is Diageo.s attempt to build a mainstream malt brand
Figure 7: Hibiki is leading a renaissance for Japanese whisky
Figure 8: Production of Japanese whisky is also struggling to meet demand
Figure 9: The major Scotch companies have been boosting production capacity
Figure 10: Production at Diageo.s new Roseisle distillery

List of tables
Table 1: Global malt scotch consumption, 1999-2015 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 2: Top ten countries by malt scotch consumption, 1999-2015 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 3: Top ten fastest growth markets by malt scotch consumption, 1999-2015 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 4: Share of malt Scotch on total Scotch in each market
Table 5: Malt scotch consumption by region, 1999-2015 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 6: Global top ten companies by malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 7: Global top ten brands by malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 8: 2008 and 2009 Scotch malt whisky stock by age
Table 9: Top ten companies in North America malt scotch consumption, 1999-2009 ('000s ninelitre cases) and 2009 value (US$'000s)
Table 10: Top ten brands in North America malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 11: Top ten companies in United States malt scotch consumption, 1999-2009 ('000s ninelitre cases) and 2009 value (US$'000s)
Table 12: Top ten brands in United States malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 13: Top ten companies in Rest of America malt scotch consumption, 1999-2009 ('000s ninelitre cases) and 2009 value (US$'000s)
Table 14: Top ten brands in Rest of Americas malt scotch consumption, 1999-2009 ('000s ninelitre cases) and 2009 value (US$'000s)
Table 15: Top ten companies in Canada malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 16: Top ten brands in Canada malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 17: Top ten companies in Europe malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 18: Top ten brands in Europe malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 19: Top ten companies in UK malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 20: Top ten brands in UK malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 21: Top ten companies in Germany malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 22: Top ten brands in Germany malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 23: Top ten companies in Italy malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 24: Top ten brands in Italy malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 25: Top ten companies in CIS malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 25: Top ten companies in CIS malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 26: Top ten brands in CIS malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 27: Top ten companies in Spain malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 28: Top ten brands in Spain malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 29: Top ten companies in France malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)
Table 30: Top ten brands in France malt scotch consumption, 1999-2009 ('000s nine-litre cases) and 2009 value (US$'000s)

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