If Scottish whisky is under 6 years old, it’s fine to mix it, and thus pursue a volume led growth strategy. Anything north of 6 years old, however, requires proper pricing; the balance sheet would otherwise crush the P\L, destroying value. At Brown-Forman we agonised over Jack & Coke for decades. But our whiskey matures earlier (those TN summers explode the alcohol into that charred new American oak … you get 12 years of “Scottish” aging in 4-6 years, depending on the weather and warehouse), and we finally agreed that it would be best to recruit consumers into the franchise via a mix that they had authored themselves.
I think the move towards cocktails and mixing is largely a financial one. After all, these are large multinational conglomerates whose only interest is growth. The single malt market has largely come to its max, you can't really convince more people that single malt scotch is the best, everyone already "knows" that, regardless if they drink it. How many rums, mezcals, brandies etc.. have marketed themselves as being the single malt of the rum/mezcal/brandy world?
So where can large volume growth come from? Cocktails. If more bars put Scotch on their menus, they'll sell far more cases than they would simply neat. The vast majority of the industry has pivoted towards large scale yield and efficiency to match the continued growth of single malts during the 2000s & 2010s in Europe, N America and Asia.
This is a very astute comment. I'm hoping that when this site is more established, there will be a comment of the week which will be sponsored by Glenfiddich (UK only, excluding Northern Ireland, terms and conditions apply.)
Really interesting piece, thank you. Has taken me back to my early (1990s) days in London on the Old Kent Road, where my local was a long-demolished corner pub called “Cockneys” which was convivial if alarming. One sweltering summer evening I asked for some ice in my end-of-the-evening Glenfiddich. The licensee fixed me with a gimlet eye and snarled “The only thing to add to a single malt … is more single malt”. I didn’t argue.
Very salient points Henry. Feels to me like folk will always use whisky from lower end (supermarket own brands, cheaper Scotch) for cocktails or with mixers. Marketeers and Brand Managers at more hallowed/storied brands (especially single malts with pedigree) need to be careful how they try and broaden their customer base without trashing the premium and sophistication legacy they have taken decades to establish.
That's just it. And I think everyone's level of how expensive they're prepared to mix with is different. I think it's good that people get upset about mixing single malts - it shows they care.
Completely agree sir. My only other observation is that when I have used more expensive brands of spirits eg tequila, rum and whisky in drinks like an old fashioned, mojito, caipirinha, whisky sour they have never tasted as good as they do with a more basic option. Having a great single malt doesn’t always result in an even better, turbocharged cocktail! Mud in your eye
If Scottish whisky is under 6 years old, it’s fine to mix it, and thus pursue a volume led growth strategy. Anything north of 6 years old, however, requires proper pricing; the balance sheet would otherwise crush the P\L, destroying value. At Brown-Forman we agonised over Jack & Coke for decades. But our whiskey matures earlier (those TN summers explode the alcohol into that charred new American oak … you get 12 years of “Scottish” aging in 4-6 years, depending on the weather and warehouse), and we finally agreed that it would be best to recruit consumers into the franchise via a mix that they had authored themselves.
Thank you for commenting and subscribing. That's a useful rule of thumb. And I think Jack & Coke is a great drink too.
I think the move towards cocktails and mixing is largely a financial one. After all, these are large multinational conglomerates whose only interest is growth. The single malt market has largely come to its max, you can't really convince more people that single malt scotch is the best, everyone already "knows" that, regardless if they drink it. How many rums, mezcals, brandies etc.. have marketed themselves as being the single malt of the rum/mezcal/brandy world?
So where can large volume growth come from? Cocktails. If more bars put Scotch on their menus, they'll sell far more cases than they would simply neat. The vast majority of the industry has pivoted towards large scale yield and efficiency to match the continued growth of single malts during the 2000s & 2010s in Europe, N America and Asia.
This is a very astute comment. I'm hoping that when this site is more established, there will be a comment of the week which will be sponsored by Glenfiddich (UK only, excluding Northern Ireland, terms and conditions apply.)
Really interesting piece, thank you. Has taken me back to my early (1990s) days in London on the Old Kent Road, where my local was a long-demolished corner pub called “Cockneys” which was convivial if alarming. One sweltering summer evening I asked for some ice in my end-of-the-evening Glenfiddich. The licensee fixed me with a gimlet eye and snarled “The only thing to add to a single malt … is more single malt”. I didn’t argue.
Ah you don't get pubs like that any more. Takes me back.
Very salient points Henry. Feels to me like folk will always use whisky from lower end (supermarket own brands, cheaper Scotch) for cocktails or with mixers. Marketeers and Brand Managers at more hallowed/storied brands (especially single malts with pedigree) need to be careful how they try and broaden their customer base without trashing the premium and sophistication legacy they have taken decades to establish.
That's just it. And I think everyone's level of how expensive they're prepared to mix with is different. I think it's good that people get upset about mixing single malts - it shows they care.
Completely agree sir. My only other observation is that when I have used more expensive brands of spirits eg tequila, rum and whisky in drinks like an old fashioned, mojito, caipirinha, whisky sour they have never tasted as good as they do with a more basic option. Having a great single malt doesn’t always result in an even better, turbocharged cocktail! Mud in your eye
After all this time, I now learn we're to have been drinking whiskey seated on the floor...
It tastes much better when you're on the floor.