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Interview: Scotch Whisky Player Compass Box Charts A New Course

November 11, 2024

Blended Scotch specialist Compass Box produces sought-after whiskies, making multiple appearances on Whisky Advocate’s Top 20 Whiskies of the Year list, including entries in 2017, 2020, and 2021. Lately the company has seen significant change, with founder John Glaser stepping down from executive duties this year, while continuing as a shareholder. Glaser’s transition came two years after London-based Caelum Capital took a majority stake in Compass Box. (The price was undisclosed, but Caelum’s strategy calls for making equity investments of between $50 million and $200 million.)

Since Caelum’s entry, industry veteran Maurice Doyle has served as CEO at Compass Box, which is now focused on expanding its presence in core markets like the U.S., bolstered by its increasing stocks of whisky, which have grown to about 50,000 casks. This fall the brand revamped its core collection, launching two new offerings—Nectarosity ($65) and Crimson Casks ($75)—alongside its existing Orchard House ($55) and The Peat Monster ($65) expressions. SND recently spoke with Doyle to learn more about where Compass Box is headed.

SND: What is your vision for the future of the Compass Box brand?

Doyle: We believe we can grow four times, five times as big as we are now in the medium term. And that’s in the U.S. and globally. That will still mean we’re very small in the world of Scotch whisky. We won’t be one of those vanilla brands which tries to appeal to everybody. But there’s a lot of people out there, modern whisky appreciators, who don’t know about Compass Box, and it’s our job to make sure they can connect more.

SND: How are you situated from a stock perspective to unlock that growth?

Doyle: In the short term there’s no volume constraints. So from a partner perspective and from our sales team, it’s “fill your boots.” And that’s true for the foreseeable future. When the acquisition happened two and a half years ago, we ensured there was ample runway in terms of stock. For the longer term we’re working with the right partners to support growth, and we’re looking at our footprint in Scotland.

SND: What was the thought process behind the portfolio revamp?

Doyle: We had a core range of seven, and consumers were telling us it was difficult to navigate. There wasn’t much connection between the various expressions. People knew about Peat Monster and Orchard House, but there wasn’t enough Compass Box branding.

They also said that, while they liked our limited editions, we were doing too many, and probably they were too high-end a price point—especially the way the markets turned. So we’ve gone from seven to four core whiskies: keeping Orchard House and Peat Monster, and adding Nectarosity and Crimson Casks. We’ve significantly increased the Compass Box branding. It’s much easier to scale a brand than to scale an expression, so we’ve dialed that up.

SND: What’s the on-/off-premise split for Compass Box?

Doyle: We’re about 19% on-trade in the U.S. We were, pre-pandemic, up to about 30%, and we’re building it up again. We’re working with lots of independent players who like to support fellow independent brands, which is a great opportunity for us.

SND: How do you see the blended Scotch market in the U.S.?

Doyle: It will rebound. I’ve been in the industry long enough to know these things go in cycles. The brands that do the right things in bad times have accelerated growth when the sun comes out. I think people will continue to drink less, but better, and that plays into what Compass Box is all about.

There’s a number of large blended Scotch brands who do a great job, but increasingly there are newer brands, which Compass Box is—we’re still one of the challenger brands. The consumer we appeal to isn’t just a blended Scotch whisky drinker. They’re promiscuous across categories, and they’re looking to assert their individuality. They will drink great blended Scotch brands that are relevant to them as well as great Irish, Bourbon, and Japanese. We’re appealing to a broader whisky consumer.

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