Single Malt Marketers Battle Competition From Luxury Tequila, Bourbon

Single malt Scotch whisky has been on a long-term upswing in the U.S. market, with depletions nearly doubling in size from 2010 to 2021 to reach 2 million cases for the first time, according to Impact Databank, before receding some the past two years.  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.

Single malt Scotch whisky shipments to the U.S. amounted to 1.93 million 9-liter cases in calendar 2023, down 14.3%, but export value was only down 1.4% to £394 million ($502m), showing the category’s resilience in dollar terms. Including blends, total Scotch whisky shipments to the U.S. fell 7% by both volume and value last year.

In line with 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—all saw declining volume last year, according to Impact Databank, although they’ve held up better on the value side.

The Macallan, from Edrington, has continued to tap single malt’s collectible segment with limited releases this year. They include The Macallan Home Collection, River Spey, which retails at around $490 a bottle; Macallan Horizon, a new whisky launched in collaboration with luxury car maker Bentley, that sells at $50,000 a bottle; and Tales of the Macallan Volume II, a 1949 vintage single malt bottled in 2022, which carries a suggested price of $90,000. Edrington Americas struck a national deal with RNDC effective in April, under which the Edrington portfolio is exclusive with RNDC in 40 markets across the U.S. Macallan was up 0.6% by volume and 4.7% by value in Nielsen channels in the year-to-date through May 18.

Caspar Macrae, president and CEO of the Glenmorangie Company at Moët Hennessy, recently told SND the brand has big plans for this year. “We just launched a concept and a product called Triple Cask Reserve, which is a new whisky entry point,” he said. “Following A Tale of the Forest and A Tale of Tokyo, there will be another story being told by Dr. Bill Lumsden and his whisky creation team later this year.” A third initiative, says Macrae, is the return of Glenmorangie’s 18-year-old whisky, newly dubbed Infinita. Glenmorangie A Tale of the Forest ranked eighth among Whisky Advocate’s Top 20 Whiskies of 2023, retailing at $102.

At Pernod Ricard, plans are afoot 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. Meanwhile, the company’s Glenlivet label continues to lead the U.S. market in volume terms. In February, Glenlivet innovated with Rum and Bourbon Fusion Cask ($100), finished in casks made from a combination of first-fill rum and Bourbon barrels. “We continue our journey to push the single malt category forward,” said Johan Radojewski, vice president marketing for Scotch, Irish & Prestige Whisk(e)y at Pernod Ricard USA. “Prestige spirits drinkers in the U.S. are seeking unique and elevated taste experiences.”

Tagged : Balvenie, Edrington, Glendfiidch, Glenlivet, Glenmorangie, Macallan, Moet Hennessy, Pernod Ricard, RNDC, William Grant and Sons

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