Spirits: The Market - US - September 2010
Brand Share—Scotch Whisky
Key points
● Volume sales of Scotch whisky totaled 8.8 million 9-liter cases in
2009, a decline of 1% over 2008.
● The majority of brands experienced modest, single-digit market share
gains. But House of Dewar’s 1.8% brand erosion in volume sales,
along with declines on the part of a few smaller brands (including
Chivas Regal and J&B), impacted the whole category. At 15.9%,
Bacardi’s House of Dewar’s commands the biggest market share in
2009.
● Three Diageo brands experienced the largest volume sales gain:
Johnnie Walker Black (4.6%), Johnnie Walker Red (4.9%) and
Buchanan (11.2%). The three labels combined command a market
share of almost 20% in 2009.
DIAGEO DOMINATES
The U.S. continues to be the biggest single importer of Scotch whisky. In 2009, total
imports increased by 13% to £419 million, says the British newspaper, The
Guardian. But the recession, coupled with the segment’s relative maturity, yielded
flat 2009 sales. Nevertheless, Diageo’s total Scotch volume sales grew by 3.4%.
Portfolio diversity, coupled with aggressive advertising and marketing aimed at new
and existing consumer groups, were the chief reasons behind Diageo’s ability to
circumvent economic pressures. Retail discounting for Diageo’s and other companies’
brands may have also played a role. Either way, Diageo’s Scotch portfolio performed
better than some of its offerings in other beverage alcohol categories.
Diageo’s main Scotch brands are: Johnnie Walker Red a versatile Scotch that
mixes well; Johnnie Walker Black, described as “rich, smooth and complex,” and
Buchanan, a Scotch that is usually enjoyed straight or on the rocks.
In addition to aggressive advertising on TV and billboards, Diageo maintains Johnnie
Walker’s brand momentum via a line of licensed golf gear (sold on its web site) and
online initiatives that communicate with the consumer on a one-on-one basis. Scotch
devotees can join a loyalty club called the Striding Man Society (the name relates to
the brand’s eponymous founder) and a Facebook page where they can download
apps, “chat” with a master of whisky and blog with other aficionados. The Facebook
page also lists event updates.
With Buchanan, Diageo has been focusing heavily on Hispanic media in markets with
large Mexican-American populations. In-store programming for Father’s Day included
the opportunity for customers to have their family crest imprinted on bottles.
Mexican, along with South American immigrants, are considered an under-tapped
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market for Scotch whisky.
Bacardi’s House of Dewar’s, the largest Scotch brand by market share, also
recognizes the significance of Hispanics. Beginning in New York and Florida, it
launched a marketing initiative targeting this group. In California, it is marketed to
Asians, another important Scotch demographic. In the general market, its Dewar’s
Decision initiative targets young adults with on-premise sampling events. It also
partners with Callaway Golf Company to stage in-store promos, promote Diablo
cocktails (made with jalapeños) and market golf ball co-packs.
Manufacturer and brand shares
FIGURE 49: U.S. brand sales of Scotch whisky, by volume, 2008 and 2009
Compa Brand 2008 2009 Change % point
ny in sales change
2008- in
09 market
share
000, 9- % 000, 9- % % 2008-09
liter market liter market
cases share cases share
Diageo Total 2,426 27.2 2,508 28.4 3.4 1.2
Johnnie 756 8.5 791 9.0 4.6 0.5
Walker Black
Johnnie 688 7.7 722 8.2 4.9 0.5
Walker Red
J&B 297 3.3 286 3.2 -3.7 -0.1
Buchanan 143 1.6 159 1.8 11.2 0.2
Other 542 6.1 550 6.2 1.4 0.1
Bacardi Total 1,426 16.0 1,400 15.9 -1.8 -0.1
USA
House of 1,426 16.0 1,400 15.9 -1.8 -0.1
Dewar’s
William Total 986 11.1 1,006 11.4 2.0 0.3
Grant
& Sons
Clan 639 7.2 650 7.4 1.7 0.2
MacGregor
Grant’s 165 1.8 170 1.9 3.0 0.1
Glenfiddich 124 1.4 126 1.4 1.6 0.0
The Balvenie 58 0.7 60 0.7 3.4 0.0
Pernod Total 918 10.3 898 10.2 -2.2 -0.1
Ricard
USA
Chivas Regal 425 4.8 397 4.5 -6.6 -0.3
The 284 3.2 286 3.2 0.7 0.1
Glenlivet
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Other 209 2.3 215 2.4 2.9 0.1
Sazera Total 497 5.6 509 5.8 2.4 0.2
c
Inver House 206 2.3 210 2.4 1.9 0.1
Lauder’s 126 1.4 130 1.5 3.2 0.1
Other 165 1.8 169 1.9 2.4 0.1
Other 2,666 29.9 2,509 28.4 -5.9 -1.5
Total 8,919 100.0 8,830 100.0 -1.0 0.0
Data may not equal totals due to rounding
SOURCE: Mintel/The Beverage Information Group
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