2012-11-15 19:08:52 - Global whisky market led by Diageo with 34% of the industry

The global whisky market is taking slow but stable steps up, resilient to negative economic conditions, helped by premiumisation trends and widening demographics. The premium appeal of the category on wealthier emerging markets and large-scale opportunities for trading up in the less affluent ones will be aided further by tariff reforms.Simultaneously, only the mature markets of Irish and bourbon have significant export potential due to accessible taste and the backing of international companies.The market for Scotch whisky has changed dramatically in the last two decades. While the vast majority of all whisky sold is still in the blended category, single malt has become an important and lucrative business.Key factors driving growth within the global whisky market include high-end single malt

 

 

Scotch increasing its presence among aspirational consumers in China, while economy/standard blended Scotch brands have gained momentum in Latin America, Eastern Europe and France, where such products are perceived as a step up from cheaper local spirits, on the back of Scotch´s prestige. Meanwhile, the introduction of new flavours has increased interest in, and sales of bourbon.Diageo controls 34% of the global whisky market and has half of the lucrative ´premium´ segment. The reason why the whisky segment is so important for spirit producers is that Scotch whisky in particular, along with cognac and champagne, has managed to preserve its origin and authenticity.This gives whisky a clear built-in stability and a strong capacity to bear higher pricing. Of all the categories, Scotch whisky - or simply ´Scotch´ - is the category of spirits that has persistently shown the strongest price increase, around 4% annually in the United States.An important part of this picture is that Scotch whisky improves with age. A single malt that has been maturing for 12 years is better than a six-year-old, but inferior to a whisky that has been maturing for 24 years. This is obviously reflected in the pricing. Diageo has therefore invested heavily in the maturing of Scotch whisky in recent years.2011´s top Scotch whisky markets by volume were as follows:
1. France
2. USA
3. UK
4. Spain
5. Brazil
6. Russia
7. Thailand
8. Mexico
9. South Africa
10. South KoreaOnly last week, the makers of Famous Grouse reported a sharp rise in turnover and profits. Edrington Group said turnover for the first six months of the year rose by 6% to almost £296 million, driven by strong growth in the US, Asia and emerging markets. Pre-tax profit climbed 21% to £84.3 million, boosted by underlying brand growth.For more information on the global whisky market, see the latest research: Global Whisky MarketFollow us on Twitter @CandMResearch

Click for news details: www.companiesandmarkets.com/News/Food-and-Drink/Global-whisky-ma ..

Browse all Food and Drink C&M News www.companiesandmarkets.com/News/Food-and-Drink/?aCode=f3fb3973- ..

About Us
Companiesandmarkets.com is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles, Companiesandmarkets.com’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.