Single Malt Marketers Battle Competitive Conditions, Emphasizing Value Gains

Single malt Scotch whisky has been on a long-term uptick in the U.S. market, with depletions nearly doubling in size from 2010 to 2021, according to Impact Databank, before slipping slightly to just over 1.8 million cases last year. As 2023 nears its end, the category continues to battle competition from popular categories like American whiskey and Tequila, with marketers aiming to maximize the value side as volume dips.

“It’s a tough category to figure out right now, but any new releases seem to do very well as it adds back in some excitement,” said Todd Randall, owner of Randall’s Wine & Spirits, with three stores in Missouri and one in Illinois. “I think the attention of the consumer is drawn elsewhere. Hopefully that trend changes as the value for price is there compared to Bourbon—16-year-old Scotch retails for under $100 where you wouldn’t find that in Bourbon today.” Top single malt sellers at Randall’s include Lagavulin 16-year-old ($80 a 750-ml.), Oban 14-year-old ($75), Glenfiddich 12-year-old ($45), The Macallan Double Cask 12-year-old ($75), and Talisker Storm ($45).

Mirroring the broader category, the top five single malt brands in the U.S. by volume—The Glenlivet, The Macallan, Glenfiddich, Glenmorangie, and The Balvenie respectively—are all down double-digits in control states through September of this year, although they’re faring a bit better in value terms.

Market leader The Glenlivet was at just over a half-million cases in the U.S. last year, more than double the size of second-ranked Macallan. The Pernod Ricard brand recently entered the ready-to-serve segment with Twist & Mix Cocktails, including an Old Fashioned and New Manhattan at 40% abv and retailing at $20 a 375-ml. “We’re inspiring people to enjoy single malt Scotch whisky on more occasions and providing a solution to meet consumer demand for high quality, freshly mixed cocktails that are easy to serve and enjoy,” said Johan Radojewski, Pernod’s vice president, marketing for Scotch, Irish, and prestige whisk(e)y.

Meanwhile, Pernod recently offered a vote of confidence for the future of single malt with plans to build a new distillery on the island of Islay, which is known for smoky single malts like Lagavulin, Laphroaig, Bowmore, Bruichladdich, Ardbeg, and others.

The Macallan, the second-largest single malt in the U.S., is one of the most expensive brands per-bottle in the spirits market, averaging over $100 a bottle, at around 240,000 cases. While volume has been sluggish, the company has been boosting value with upscale expressions like The Macallan James Bond Collection and The Macallan M series. “The premiumization trend is here to stay with the majority of the growth in spirits coming from super-premium and above,” said brand director Jessica Tamilio. “In 2022, The Macallan captured 50% of the $200-plus price segment for single malts and 13% in spirits overall.” This fall, the brand released the third edition of its Harmony Collection, featuring malts retailing from $185-$210 a bottle.

At William Grant & Sons, the Glenfiddich and Balvenie brands “have definitely benefited from the normalization of the on-premise, getting listings and menu features back as outlets replenish their lists,” William Grant & Sons USA president and managing director Paul Basford told SND. “Both of them have been impacted by supply, but we’re through that and now moving forward in a very progressive way, which means we can start to do more with special releases. Glenfiddich recently released the Grand Yozakura, 29 years old and finished in Japanese Awamori barrels, which sells for about $1,999.” Glenfiddich totaled just under 190,000 cases in the U.S. last year, according to Impact Databank, while The Balvenie was at just over 100,000 cases.

Moët Hennessy-owned Glenmorangie, at just under 130,000 cases last year, has also been active on the new product front. Its recent releases have included A Tale of Tokyo, matured in Japanese Mizunara oak casks, ex-Bourbon barrels, and Sherry casks and retailing at $110, as well as The Cadboll Estate, a 15-year-old malt selling at $100. While acknowledging the general slowdown in single malt, Moët Hennessy USA vice president and head of spirits brands Kenny Moore said, “We’re laser-focused on creative ways to drive brand desirability through innovative new releases.”

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