This article was initially published in the November issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
From the US to India, pioneering distillers are redefining single malt whisky, while Scotland’s established brands aren’t resting on their laurels. Richard Woodard reports.
If you happen to catch ‘Decision to Leave’, the most recent film from South Korean director Park Chan-wook, look out for a brief appearance from a single malt whisky. For once, it’s not The Macallan in the spotlight, or Laphroaig or The Glenlivet; instead, it’s Taiwan’s Kavalan.
According to Kaitlyn Tsai, Kavalan’s brand ambassador & global PR officer, the distiller is “very honoured” by the cameo, and no wonder: Exports to South Korea last year were up 427% on 2021. Yet more evidence, then, of the increasingly cosmopolitan nature of the global malt whisky marketplace.
That’s not to say that single malt Scotch is sitting quietly in the wings, watching everyone else have all the fun. There’s been a fresh wave of investment in the category in recent months, from Chivas Brothers’ GBP88m (US$108m) expansion of its Aberlour and Miltonduff distilleries to Brown-Forman’s GBP30m [then-US$36.7m] doubling of production capacity at GlenDronach.
Moët Hennessy, meanwhile, is pushing a rebranded Glenmorangie, alongside recently-expanded Ardbeg. And Diageo — which owns almost 30 Scotch distilleries — is determined to increase its single malt category share on the back of The Singleton’s trio (Dufftown, Glen Ord and Glendullan), plus Talisker and Mortlach.
Such moves are a response to the dynamic market for single malt Scotch around the world, with the US to the fore. Impacted in 2020 by the Trump administration’s import tariffs and COVID-19, the category has bounced back strongly since, with US volumes poised to hit 2m cases in 2022.
Japan ‘opened the floodgates’ for single malt globally
Nonetheless, Scotch isn’t necessarily the example that newer points of whisky origin wish to emulate. “The idea of single malt being made outside Scotland is growing more common by the day,” says Matt Hofmann, co-founder & MD of Washington state-based Westland Distillery, which is owned by Rémy Cointreau. “We have to thank Japan for this, first and foremost. What they did really opened the floodgates.”
It’s a view echoed thousands of miles away at The Lakes Distillery in the northwest of England. “While our origins can be traced back to lessons learned working in the Scotch whisky industry, our philosophy is more closely aligned with the meticulous attention to detail that is prevalent in Japanese distilleries,” says communications manager Steve Gibson. “Japanese whisky leans on the traditions of Scotch, but retains an aura of distinctiveness and individuality.”
New-wave malts share similar path to wine
If Japan provides philosophical inspiration for many new-wave malt distillers, the best analogy comes from the evolving wine market.
“The world whisky category continued to develop and grow over the last decade, and consumers have seen award-winning whisky hail from all parts of the globe — from England, Australia, Japan, Taiwan and beyond,” says Cotswolds Distillery marketing director Debs Carter. “Much like the wine industry experienced with New World wine, consumers are open to whisky from these new countries. At whisky shows, we see consumer interest and support for our story, and are proud to be part of a wider group of new, innovative producers.”
This is reflected in the ever-wider spread of markets that brand owners are targeting. While Tsai describes China, France and the US as “must-win” destinations for Kavalan, Carter says the priorities for Cotswolds are France, the US and Germany, but adds that Asian markets, including China, are also being developed.
Meanwhile, The Lakes Distillery aims to expand its presence in the UK, while also moving into a swathe of markets including Japan, China, Singapore, Canada and a number of European countries. Its signature Sherry-led whisky, The Whiskymaker’s Reserve, is also launching in the US and France, and the company recently added to its roster with The Whiskymaker’s Editions Infinity, launched last year.
Indian single malt sees promise in Poland, Germany and Japan
Indian single malt has been pursuing an increasingly international export strategy for some years. Paul John is established in the US, the UK, Australia, the UAE and in India’s Global Travel Retail channel, but the company also names Poland, Germany and Japan as promising emerging destinations for the brand.
Radico Khaitan’s Rampur Single Malt is only available on strict allocation — which limits any immediate thoughts of expansion — and is focusing on existing markets such as the US, the UK, Europe, Singapore, Australia and GTR. The company continues to innovate, with recent launches including GTR-exclusive Rampur Trigun and two more expressions, Rampur Jugalbandi #1 and #2.
While these producers are often vying to attract the same consumers, there’s a feeling of friendly rivalry, rather than cut-throat competition — recognition that every advance aids the cause of single malts of all origins. “We absolutely welcome the growth of the world whisky category,” says Carter. “More great whisky entering the category helps to build the rationale for retailers to devote more space to world whisky brands, which in turn helps to build consumer awareness and trial.”
Amid this optimism, the grim reality of spiralling inflation, raw materials and energy costs, not to mention dwindling disposable incomes, continues to bite. But even here, single malt producers scent opportunities.
Westland has recently launched its flagship American single malt, priced at US$59.99/ EUR59.99/GBP49.99, depending on the market, which looks timely as consumers look to economise. “I’m really proud of what we’ve been able to achieve,” says Hofmann. “Being able to offer a new entry point, $10 below our previous entry-level product, is a great way to help connect folks with our brand.”
Going legit – single malt regulation around the world
The globalisation of single malt brings challenges along with opportunities. One of the main issues is enshrining the provenance of single malt origins in regulations — while also allowing distillers to innovate.
In early 2021, Japan and New Zealand announced new rules for whisky-making, while the US is in the late stages of doing the same for the fast-growing American single malt segment.
“The ‘Standard of Identity’, as the definition is called here in the US, is important as it clarifies exactly what the words ‘American single malt whiskey’ mean when a consumer sees them on a label,” says Westland’s Hofmann. “It should match with their existing ideas of what single malt is: spirit distilled at one distillery out of 100% malted barley and, in this case, made in America.
“It’s very simple. The latitude in the definition leaves a huge amount of space for innovation. Indeed, this was one of the primary concerns when we crafted it, as we collectively believe it’s the strength of the category today.”
Moves to tighten rules in the UK, China and Taiwan
Others are moving in a similar direction. In May, the English Whisky Guild was established with 15 founder members including The Lakes Distillery, Cotswolds Distillery and The English Whisky Co. One of its first steps was to make a GI (geographical indication) application to the UK Government, which includes a request for a legal definition for English whisky.
Elsewhere, there are signs that existing rules may become tighter. Pernod Ricard, which has established The Chuan Malt Whisky Distillery in China, has hinted at potential reform in the country, including bringing the current minimum two-year ageing period for Chinese whisky into line with Scotch at three years.
Similarly, Taiwan’s rules stipulate that whisky must be produced locally and matured for at least two years, contain cereal grain, and have a minimum ABV of 40%. Nonetheless, category leader Kavalan would like to go further. “As a producer, we would really like to have stricter regulations to protect our reputation and the reputation of Taiwanese whisky in the next decade,” says Tsai.
This article was initially published in the November issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
