Blended Scotch Players Innovate To Expand Category’s Appeal

After advancing by 2% to 5.8 million cases in the U.S. last year, according to Impact Databank, blended Scotch whisky volume was down 3% in control states through the first three quarters of 2023. Still, innovation has led to growth for certain brands and price tiers, as marketers look to engage consumers with new offerings.

At Cheers Liquor Mart in Colorado Springs, Colorado, owner Jack Backman says blended Scotch has grown recently at the store, mostly due to the big increase on single malt prices. “I think it will continue to grow slowly as trends in drinking more upscale spirits continue to increase while wine continues to decrease in popularity,” he says. Top-sellers include Johnnie Walker Red ($37 a 1.75-liter, $26 a 750-ml.), Dewar’s White Label ($37; $26), John Barr ($30 a 1.75-liter), Buchanan’s 12-year-old ($40 a 750-ml.), and Monkey Shoulder ($32).

Bacardi-owned Dewar’s was the best performer in the category last year, nearing 1.1 million cases on 20% growth. This year, the brand is innovating at the high end with releases like Dewar’s Double Double 37 (finished in Aultmore single malt casks) and Double Double 21 (finished in Mizunara oak). “We’ve built a steady pipeline of premium innovations over the past few years that has helped grow the brand, most recently the launch of our reimagined Dewar’s 12-year-old just last year,” Brian Cox, vice president of Dewar’s for North America, told SND.

The fastest-growing leading Scotch brand in control states this year has been Buchanan’s, part of the Diageo portfolio. Buchanan’s has been boosted by its launch of a Pineapple flavor extension, which has started fast out of the gate. “Buchanan’s Pineapple is now the number-one core spirits innovation in the last year,” Diageo North America CEO Sally Grimes recently told analysts. “It’s driving new recruitment to both the trademark and the category. Initial consumer data shows that 80% of these consumers are new to buying Buchanan’s within the last year and 50% of these consumers had not purchased Scotch in the past year.”

Diageo portfoliomate Johnnie Walker continues to lead the blended Scotch category in the U.S. at 2 million cases. According to Impact Databank, slightly more than half of the brand’s volume comes from Johnnie Walker Black, which grew 2% in Circana/IRI channels in the year-to-date through November 5.

At Pernod Ricard, the focus has been on market-leading single malt brand The Glenlivet, but the company’s Chivas Regal blended Scotch whisky is also among the top labels in the category. Last month, the brand introduced Chivas XV, aged 15 years in French oak, finished in Cognac casks, and retailing at $50 a bottle. “While the blended Scotch category has experienced significant increases in price mix, the category is seeing growth and stabilization this year, largely driven by super-premium-plus brands,” says Johan Radojewski, vice president of marketing at Pernod Ricard USA.

This summer, Beam Suntory introduced a new blended Scotch to the U.S. market called Ardray ($85 a 700-ml.), which brings together malts from both Beam Suntory—owner of Laphroaig, Bowmore, Ardmore, and Glen Garioch—and Edrington—owner of Highland Park, The Macallan, and The Glenrothes—and pays tribute to Suntory’s legacy of blending whiskies.

Elsewhere, Scotch specialist Compass Box continues to champion the blended category with new releases, and this fall launched its first national marketing campaign, focused on key cities like Los Angeles, San Francisco, Chicago, Dallas, Miami, and New York City. Also drawing new drinkers into the category is blended malt offering Monkey Shoulder from William Grant & Sons, which grew from 80,000 cases in 2019 to more than 115,000 cases last year, according to Impact Databank.

Tagged : Ardray, Bacardi, Beam Suntory, Buchanan's, Chivas Regal, Compass Box, Dewar's, Diageo, Johnnie Walker, Pernod Ricard

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