'We’re on the right track to make Old Pulteney more of a global brand' - International Beverage GTR senior sales manager Mathieu Jeannin speaks to Global Drinks Intel

Among the plethora of spirits brand owners exhibiting at the TFWA World Exhibition & Conference in Cannes earlier this month was International Beverage, the spirits division of ThaiBev. Global Drinks Intel editor Olly Wehring met GTR senior sales manager Mathieu Jeannin to learn more about the company’s prospects in the channel.

Global Drinks Intel: How high a priority is the global travel retail channel to International Beverage?

International Beverage GTR senior sales manager Mathieu Jeannin: Global Travel Retail is one of our top five markets. We have a clear focus to develop our brands and their visibility in the channel over the coming years. Our main brands in GTR are single malts Old Pulteney, Speyburn and Balblair, as well as Caorunn gin, Larsen cognac and Phraya rum from Thailand.

Our volume driver in GTR is our blended scotch, Hankey Bannister, which has historically sold well in Eastern Europe and Turkey because of its popularity with Russian travellers.

GDI: How’s International Beverage doing in GTR?

MJ: While premium is still a long-term trend, we’ve seen quite a downturn recently, with people spending less on alcohol compared to before Covid. The average basket spend for alcohol in airports is at about $80, compared to $90 before the pandemic.

Most of the data we have shows a clear long-term trend for premiumisation, which is why we’re heavily invested in offering more premium whiskies.

GDI: You’ve just unveiled a three-strong range from Speyburn (below), based on the identification of a price-related opportunity in GTR.

MJ: The trend for spirits in the channel has been – and continues to be – to go more premium. Many of our competitors have gone up-market with their brands. Our idea here is to market Speyburn to the entrant consumer – those that know a bit about whisky but tend to stay in the blended segment and aren’t that accustomed to single malts.

We want Speyburn to be accessible and easy to understand for the untrained consumer. We’ve priced the range at between EUR30 (US$33) and EUR50 for consumers who aren’t ready to spend too much but want to experience something at the right price.

GDI: Do you feel you’re going against the tide in the channel with the Speyburn strategy?

MJ: In a sense, yes, but we have a brand for each type of consumer. Balblair and Old Pulteney, for example, are very premium. We think it’s very important to have a brand that targets entrant consumers because there aren’t many brands that are doing this.

GDI: Which brands are exciting you the most and which are causing you concern?

MJ: Speyburn’s obviously exciting because of the new range. The brand needs better visibility – it’s quite strong in many domestic markets but has been historically quite weak in travel retail, so this is a key opportunity and we really want to make sure we do it right. We want to find our right consumer base in the channel.

Old Pulteney (below) is a priority brand that’s more established. In our portfolio, many consumers know the brand and we’ve been building its story and image to emphasise its connection with the sea (the Old Pulteney distillery is based on the coast in the north of Scotland). We’ve recently secured new listings for the single malt in France, Italy and Turkey as well as in Dubai. We’re on the right track to make Old Pulteney more of a global brand.

If I had to pick one particular challenge, I’d say it’s in the gin category. Caorunn is a premium Scottish gin, so it’s quite niche. The brand has done well in the UK but the category is declining almost all around the world. Operators have become more selective and we’re at risk of losing some of our listings because some brands are investing more than we are. It’s also exceptionally competitive – there have been many craft gins coming into the market in the past ten years.

GDI: Which spirits categories are delivering growth that International Beverage can capitalise on?

MJ: While rum is quite small in travel retail, there’s a global trend of rising rum consumption. We’ve got a premium brand in Phraya, which is available in GTR in Thailand – our parent company, ThaiBev, is based there and is a beverage industry leader in South-East Asia. Phraya isn’t present in the European GTR channel yet, but we hope to realise this opportunity soon.

GDI: How is International Beverage able to leverage its parent’s strength?

MJ: Many of the large GTR operators have made requests of us to support them in their journey in Asia with brands that appeal to Asian consumers. Phraya could be a very good addition for the operators who want to develop their presence in the region in airports such as Hong Kong Airport or Singapore, or even on China’s duty-free island of Hainan.

Through ThaiBev, we have a good understanding of the region and we have the capabilities to provide our partners with what they’re looking for, so it’s very beneficial for us.

GDI: What are your expectations for the Larsen cognac brand in GTR?

MJ: The acquisition (from Anora Group for around US$60m) completed at the end of last year, but we’re still working on integrating the brand into all of our systems. There’s a lot of work that’s being done to make Larsen appealing in travel retail and we want to build beyond the borders of its existing markets in the Nordics and in China – We have plans to introduce the range to Europe’s GTR markets very soon.

This year, the focus is on Speyburn, next year, it may be Larsen!