The Growth of the Luxury Spirits from 2010 to 2020

Luxury spirits is referred to as the aggregation of the luxury brands in every category in terms of price and their status within their category.

According to the figures from Euromonitor International, the value of luxury spirits market will reach £12.8 billion in 2020 based on the current exchange rates and prices.

On the other hand, the volume of sales made in the spirits category is thought to slow down to a near stop from 2015 to 2020, says the recent research by the IWSR.

The main player in the luxury spirits market will still be the US with a growth in value to £4.9 billion in 2020 from £2.5 billion. Meanwhile, the UK is expected to have a growth from £432 million to £525 million.

Different categories of luxury spirits are expected to grow by the end of this current decade; most notably mescal/tequila, and whisky — from £579 million to £1.2 billion and £1.9 billion to £4.1 billion.

whisky exchange

Luxury Spirits Gifts. Image: www.thewhiskyexchange.com

Global growth of luxury spirit in the last half of the decade (2015 to 2020), however, will be slower than the last 5 years. This growth slowdown will only affect some of the major markets. The US, who has seen 52% growth in 2010 to 2015, will only be seeing a 31.1% growth in 2015 to 2020.

According to Spiros Malandrakis, the senior analyst of Euromonitor International, the major benchmark of the Luxury spirits industry is the great recession. Western luxury brands were pushed to focus more on developing nations and China. And although China has suffered from recession, they are still open to western companies.

“But the latest benchmark in luxury spirits has been this bubble in China bursting, in line with crackdown on extravagant spending brought in by the government. This came at a time when sophistication of the Chinese palate increased,” says Malandrakis.

However, the biggest issue recently has been on how luxury brands would stand out from its standard and premium counterparts.

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Wholesale Irish Whiskey: Supporting Economic Growth

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Comepcon reports for The Wild Geese Irish Whiskey company that small Irish Whiskey brands might experience serious supply shortages without establishing a wholesale market for a bulk Irish whiskey. They also reported significant barriers to entry for companies entering the Irish whiskey market which can be addressed through bulk wholesale.

The findings were based on the analysis of the performance of the industry for Irish Whiskey and its ability to contribute to the economy of Ireland compared to the Scotch whisky industry.

whiskey brands

Scotch VS Irish Whiskey: What’s The Difference?. Photo(c): www.youtube.com

The Main Points for the Report

  • In terms of exports, Scotch whisky has exported over $5.3 billion in 2014; while Irish whisky exported only $372 billion.
  • Unlike the Scotch whisky industry, Ireland don’t have a functioning market for wholesale whisky; thereby, creating doubts in costs and supply from new entrants.
  • The wholesale market for whiskeys in Scotland has encouraged the growth of the industry, having about 5,000 blended whiskeys and hundreds of malts. This enabled entrants to create their own brands.
  • In Ireland, there are only 4 distilleries that produce mature whiskeys; while in Scotland, they have about 115 operational distilleries, with 30 new facilities that are still under construction.
  • There are several barriers to entry in Irish whiskey industry, such as the mandatory 3-year maturation period before products are sold.
  • Currently, there are several companies that created Irish whisky brands; however, they were undermined due to the lack of supply of mature whiskeys.
  • The creation of a wholesale market for Irish whiskeys would be a very effective way of promoting new exports from Irish whiskey companies.
  • Having more whiskey brands might yield significant benefits in Ireland’s economy in terms of employment, production, and exports.

According to the Director of Compecon, Pat Massey, their analysis shows the fundamental challenges that the smaller Irish whiskey brands are facing in Ireland recently. Although there is an increase in demand for it, at home and abroad, potential small companies at large are stifled due to the lack of adequate support measures from the industry.

He added that the wholesale market is crucial for SMEs to be successful at the early stage of business; it is essential for the entire industry as well. According to the Irish Whiskey Association, it should be deemed possible to enter the whiskey market without having to build distilleries.

The Chairman and Co-Founder of The Wild Geese Irish Whiskey, Andre Levy, said, “Issues such as high cost of market entry, the presence of larger established market players, controlling supply and the difficulty in accessing a long-term and competitive mature whiskey supply. These are prohibitive to new market entrants and threaten existing brands looking to survive, grow sustainably and share in the category they played a part in growing.”

Levy also calls for the Irish Government to support the immediate establishment for wholesale market of Irish Whiskeys; adding that they believe that the Government has an essential role in supporting the SME sector as they continue to work to help economic growth.

The Irish Whiskey Association, on the other hand, says that properly functioning internal wholesale market is essential to encourage new entrants, decrease the risk of business models, as well as to encourage a more efficient use of capacity.

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Utah’s Top Liquors

While wine is considered to be the most popular drink of choice in Utah, the top-selling branded alcoholic products are actually Barton vodka, and Jack Daniels’ Black Label whisky.

Barton Vodka has the most units sold in the overall alcoholic beverages category. They’ve sold around 666,572 bottles from September 2014 to September 2015, says the data collected by the Utah Department Alcoholic Beverage Control. Their sales went up to $4.9 million this year.

Mixed Drinks on Restaurants

Vickie Ashby, the state spokeswoman, said that Barton vodka is often bought by restaurants to create a cocktail or mix drink, as well as drink specials. According to her, “Bartons is the cheapest”.

Popular Drinks According to Sales

The Taaka vodka placed second for having 363,092 bottles sold. While Fireball Cinnamon whiskey and Smirnoff vodka placed 3rd and 4th, respectively. Jack Daniels’ Black Label, on the other hand, made it to the 5th spot having over 200,000 bottles sold.

Jack Daniels as Top Earner

Black Label is also the overall top dollar earner in the state, having $6.1 million in sales with 234,097 sold last year. Meanwhile, Crown Royal whisky placed second, and Barton vodka came in third. Fireball Cinnamon Whisky and Jagermeister sold over $4 million in sales, joining the top 5 alcohol sales in Utah.

fireball whiskey

The Top Selling Liquor in Utah. By fox13now.com

Wine Statistics

Utah, the wine-loving state opts for the white varieties. This includes the top dollar earner Kendall Jackson Vintners Reserve chardonnay which sold 55,029 bottles in total, having a net sale of $902,000. Vendange chardonnay, on the other hand, has the most units sold with 70,565 bottles, having $221,000 in net sales. Although it was reported last year that over 8.2 million gallons were consumed by the residents last year, the lower wine product numbers this year are due to the wide variety of brands and variants sold, according to Asshby.

Beer Statistics

In terms of beer, Icehouse is the top-selling brand as it sold about 1 million units; having net sales of $1 million. Squatters Hop Rising Double IPA, on the other hand, sold the most in cash sales with net sales of $1.6 million, selling a total of 872,859 bottles.

Squatters are based in Salt Lake City. It is among the craft breweries that had helped raise the beer sales in the state by 9 percent this year — considered to be the “biggest” jump in 5 years.

Note, however, that the numbers don’t include those that are sold in grocery stores that contain less than 4% (based on the law of the state). Utah doesn’t actually keep track of those sales.

According to Jim Olsen, Utah Beer Wholesalers Association’s president, although Icehouse is still popular, the generation of millennial beer drinkers want a variety of tastes and flavors.

Utah’s Liquor Sales

Utah is among the states in the country that is run by liquor sales. In fiscal 2015, the state had $396 million in total sales of liquor, marking an 8% increase from 2014; it is also more than double from 10 years ago. According to data available, liquor sales have increased since 1996.

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First Ever Canadian Whisky to Win the Whisky of the Year Award

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Jim Murray, the renowned whisky writer, awarded Crown Royal Northern Harvest Rye as the 2016 World Whisky of the Year — the first time in history for a Canadian Whisky to receive an honor. Canadian and Rye whisky has been increasingly popular among whisky aficionados and consumers lately.

“Crown Royal Northern Harvest pops up out of nowhere and changes the game. It certainly puts the rye into Canadian Rye. To say this is a masterpiece is barely doing it justice,” says Murray as he awarded them, with a record of 97.5 out of 100 points.

best whisky

From Purple Felt Drawstring Bags to 2016 World Whisky of the Year. Photo courtesy: gearpatrol.com

Crown Royal Northern Harvest Rye was only released in the US early this year. It features the distinct Canadian rye whisky that consumers loved throughout the years. This latest variant is the first ever blended variant with 90% rye whisky. It gives out a smooth and spicy flavor which can be blended with rye cocktails. You can also have it neat or on the rocks, depending on your preference.

“Crown Royal Northern harvest Rye showcases the rye whiskey that has been such an integral component of the Crown Royal Deluxe blend since 1939. This is a testament to the unbelievable blending and distilling that’s been taking place in Gimli for over 75 years. We are thrilled that Crown Royal Northern Harvest Rye has been named World Whisky of the Year!” says the Vice President of Crown Royal, Yvonne Briese.

The recognition from the whisky community comes after they’ve launched their new campaign entitled “The One Made for a King”. This campaign was created to share the 75-year-old brand’s history, as well as its credentials with some of its consumers. It will come out in digital and social, as well as print and TV.

Aside from the 2016 World Whisky of the Year award, the Crown Royal Northern Harvest was also awarded with a double gold medal during the San Francisco World Spirits Competition. This new variant is part of Crown Royal’s wide portfolio of variants that whisky drinkers would love to enjoy; this includes the Crown Royal Regal Apple. The Crown Royal Hand Selected Barrel was also a recipient of a double gold recognition and a winner of the “Best Canadian Whisky” award during last year’s San Francisco World Spirits Competition.

As Crown Royal raises a glass in celebration winning an award for their Northern Harvest Rye, they are still keen on reminding their consumers to drink responsibly.

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Scotch Industry Booms in US

red label whisky

According to recent studies, the exports of single malt Whisky to the US has increased by 60% from 2004 to 2014.

Richard Lochhead, the Cabinet Secretary for Food and Drink, met with the President of Distilled Spirits Council of the US, Dr. Peter Cressy, the members of the council, representatives from each Scotch Whisky companies, as well as the retailers to celebrate the success of the Scotch industry and promote quality products.

Mr. Lochhead says that the USA has been the biggest market for whisky exports and these have been proven by research. He notes that Americans clearly have great taste in alcohol and that they know how to appreciate the finer things in life.

“America is a key, and important, growth market for a range of our products and it’s great to see that our whisky exports are going from strength to strength,” says the cabinet secretary. “Scotch whisky is so popular that we export a bottle a bottle every 40 seconds and I’ve definitely been impressed by the enthusiasm for our fine malts in the US.”

red label whisky

Johnie Walker Whiskey. Image: www.dutyfreeaddict.com

The Red Label Whisky

The Red Label is the pioneer blend of the Johnnie Walker scotch; it was the first one to be introduced around the world.

Who doesn’t love whisky and limited edition alcohol? Diageo PLC with Global Trading Concern, their official distributor, launched a limited edition of Johnnie Walker Red Label in a one-liter bottle.

The limited edition bottle showcases the bold taste and flavors of the Red Label. Its bold liquid is featured with the use of red-colored bottle that will surely standout on the shelves. Aside from that, it is also used to signify good luck, celebrations, strength, and brave decisions.

Drinking a Whisky

Since whiskies are popular today, more and more people are getting on board with drinking it at the bar. If you are one of them, then you know how important it is to drink like a pro especially when you are in public.

According to David Miles, Maxxium UK’s Mixxit Manager, “The most fundamental rule of whisky drinking is drink your whisky any damn way you want to. Do not be bullied by people who say everything has to be a certain way.”

Another important thing is to know the casks where the whisky is aged in. There are two types of casks; bourbon and sherry. And the difference between the two isn’t just seen in the obvious, but it can be tasted. Bourbon has a vanilla feel with hints of tropical fruit in it. Meanwhile, sherry has fruity, nutty notes. What you order depends on your taste.

Note that water can open up the whisky, making savor the taste and smell the flavor. According to Miles, start with just a small drop and then go from there. He wouldn’t recommend scotch on the rocks because it is very volatile at room temperature; that is the reason for its strong smell. Instead, drink it with ice.

To those who say that scotch shouldn’t be added in cocktails, you can do actually do it. Miles says you can actually enjoy a whisky sour, blend the spirit with lemon and sugar. Or, you can try it as a base of a long drink with ginger ale and soda water.

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The Expansion and Boom of Irish Whiskeys

Irish Whiskey

According to Richard Bruton, the Jobs Minister, the increasing popularity of the Irish whiskey industry internationally can be attributed to companies that make the beverage “cool”.

The minister spoke when the maker of Jameson Whiskey, Irish Distillers, launched €17 million plan of expanding their Fox and Geese bottling plant located in Dublin, Ireland. This development plan created approximately 30 jobs which mean that the company will be able to produce more bottles of whiskeys.

The factory’s bottling capacity at the site is said to increase from 5 million 9-liter cases to approximately 7.5 million cases, or about 120 million bottles, of James every year by 2017; thereby doubling the exports made by the company for the next 5 years.

Jameson is owned by Pernod Richard, a producer from France. Jameson’s sales have grown annually for 25 years and development of a new bottling plant came from a €200 million investment on its facilities located at Midleton Distillery, as well as its maturation plant located in Dungourney.

According to Mr. Bruton, Jameson’s success had made the Irish whiskey among the serious players in the industry. He also said that this happened because of how the drink was marketed to other countries.

Teeling Whiskey

Along with Jameson is the newly opened distillery Teeling Whiskey in Dublin that created 30 jobs. This €10 million distillery is actually the first new distillery that has opened in Dublin for over a century already. Aside from being a fully functional distillery, it also features a visitor center that has a bar, a café, a gift shop, and a function room for private events.

Irish Whiskey

The Boom of Irish Whiskey

According to a campaign that is being run by the Irish drinks and hospitality industry called “Support Your Local, these (Jameson’s expansion and the newly opened Teeling Whiskey) are clear signs of how the Irish whiskeys are taking a “firm hold” of the market.

Bart Storan, the campaign manager of Support Your Local, said “The Irish whiskey industry is experiencing an amazing period of growth at the moment, with annual exports up 220% since 2003.”

Teeling Whiskey Distillery is actually good for both the employment and tourism industry of Dublin. Aside from that, the expansion of the bottling facility of the Irish Distillers will support the overall goal of the Irish whiskey industry which is to at least double the exports by year 2020 and double it again by 2030, as well as to increase the market share of Irish whiskeys from 4% to 12% by the year 2030.

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The First New Distillery Company in Dublin in 125 Years: TWC

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The Teeling Whiskey Company (TWC) has officially opened its €10 million worth distillery and visitor center last June 9 in Dublin; its construction began in 2014 and has begun distilling last end of March. This distillery was the first to open in more than 125 years. As a matter of fact, it is the only fully functional distillery in the city since Jameson Distillery moved its operations at Mallow, Cork.

How TWC started

TWC was founded by Jack Teeling in 2012 for the purpose of reviving the traditions of his family in the Irish whiskey industry by bringing back distilling to Dublin. Walter Teeling, Jack’s ancestor, had a distillery in the 18th century at Marrowbone Lane. Currently, Jack is running the new company alongside his brother Stephen.

How TWC works

Having their own distillery means that TWC gains complete control of all aspects of the production of whiskey —- from grains to bottle. It aims to be the leader of innovation and to build a good reputation of producing some of the best whiskeys in the world. In fact, recently, the Teeling Single Malt was known as the “World’s Best” for 2015. During the San Francisco World Spirits Competition, the World Whiskies Awards and Teeling Small Batch were branded as the “Best Blended Irish Whiskey”.

production of whisky

Today, the Irish whiskey has been increasingly popular in Ireland and abroad and is among the rapidly growing spirits category worldwide. In fact, according to reports, it is expected to grow further by more than 60% from 2014 to 2019 and is estimated to sell 96 million bottles across the globe by 2016.

Jack Teeling said during the opening of the distillery, “Today is a momentous day in the history of our company and something we have been working towards for the last 3 years. We are delighted to officially open our brand new distillery and bring back the tradition of distilling to Dublin.”

The company is said to be confident that their new distillery will attract tourists. The visitor center opened last June 13 and is open from 9:30 in the morning to 5:30 in the afternoon; they are open from Monday to Sunday.

Another attraction at the TWC distillery is the Bang Bang Bar — that was open to the public since June 13 — which can only be reached by taking the distillery tour for only €14. This distillery visit includes the 45-minute tour of the distillery itself and free two drinks at the bar; a Teeling range whiskey and a whiskey cocktail that was created by Kevin Hurly, the new Global Teeling Ambassador.

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€1 Million Worth of Jameson Whiskey Stolen from Warehouse in Dublin

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In what is dubbed as “the great booze robbery”, an armed gang of thieves who were said to be from Dublin stole 15,480 bottles or approximately €1 million worth of gin and whiskey from a warehouse in broad daylight.

The Ireland police department is looking for at least 5 suspects who were armed with iron bars. They were reported to have loaded the alcohol into two 40-foot trucks after tying up the warehouse’s employees on the borders of Dublin. It was said that the robbery took place in a span of an hour between 3 and 4 in the afternoon.

According to reports, the trucks have left the scene between 4 and 4:30, and used the Killen Road to the junction of the Nangor Road where they went towards the Long Mile Road, turned to Naas Road, heading to the Red Cow.

The police said in a statement, “Two employees were working at the warehouse when two men entered the building with iron bars. They forced the employees to open the loading bay. At least 3 more men arrived and the employees were tied up.”

The police officers of Ireland gave a detailed description of the trucks. The first truck is said to have a red cab with spotlights at the top and a white 40-foot container. Meanwhile, the second one has a white cab, a 40-foot container, with a blue curtain. Unfortunately, there aren’t any distinctive features on either of the Lorries.

There are about 2,580 cases of Jameson Whiskey with each case that has six 700 ml bottles (all of which amounted to €450,000); and a significant amount of cases of Jack Daniel’s whiskey and Bombay Sapphire Gin that were stolen. All of these goods amounted to approximately €1 million.

The police believe that the stolen goods will be sold on the black market in time for the holidays wherein its retail price would reach up to hundreds of thousands of euros.

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