SUSAN YOUNG PONDERS THE ISSUE THAT MINTEL RECENTLY RAISED…THE MAKRET ANAYLSTS SUGGESTED THAT UNLESS WE GOT AWAY FROM THE HEATHER AND HILLS IMAGE OF WHISKY SALES WERE GOING TO SLIP DRASTICALLY IN THE UK.
Since I have writing about whisky, some 20 years, the age old issue has been ‘how to attract new drinkers without alienating current whisky drinkers’? But despite the talk it seems that the whisky industry has failed, to date, to conquer this issue. Mintel, the renowned market anaylsts believe that sales are slipping and set to drop a further 10% in the next 5 years due to the fact that whisky is being marketed inappropriately for its UK and Scottish consumers. And I totally agree.
Younger drinkers will come into whisky through the blended market. Mintel too acknowledges this, but lays the blame of declining whisky sales firmly at marketeers who are failing to attract younger drinkers to the dominant blended Scotch category. This has led to a 8.5% decline in blended volume sales between 2003 and 2008. But not only that even traditional long-standing drinkers are losing their taste for blends. Out of sight of mind?
The only major blend making an effort in this category is the Famous Grouse with its Naked Grouse, Snow Grouse and Black Grouse expressions – however I still think the marketing is somewhat old-fashioned. I can see why it may want to sponsor a birds charity – and I’m talking about the feathered variety not the female one – but it might have been more interesting if was the latter. I’d love to see Snow Grouse sponsoring snowboarding and quirky advertising round the Naked Grouse – if you are going to use a word that conjures up nakedness why not have some fun around it? At least it might get the younger generation talking about it. Another blend raising its profile is Wm Grant, Grant’s is sponsoring Piers Morgan’s Life stories, and another series has just started. It certainly gives it a diverse audience, but not necessarily of the younger variety.
The only hesitation with regard to Mintel’s study is the use of the word ‘heather’. Now I don’t know about you but I can’t recall any heather in whisky advertising of late – scenery yes, heather, no. But then again what whisky advertising has stood out in the last few years. And what TV advertising has there been?
The Famous Grouse animated TV grouse is quirky, but it’s been more than a decade since this campaign was launched, and I know I was at the launch. While the last Bell’s campaign – the bearded man, was hardly ‘of the moment’. Talisker shot itself in the foot in its press advertising by using a French lighthouse instead of one in the vicinity of Skye. These ads are standing out for the wrong reasons.
But the analysts are adamant pictures of rugged coastline and an elitist reputation as a tipple for connoisseurs are contributing to its predicted decline of up to £300m in UK whisky sales by 2016.
Some folk have called it ‘sounding an alarm’, I’d call it ‘a wake up call’. The time for pussy footing around whisky marketing is over. Can any industry afford to lose £60m a year in sales? And while exports have risen 60% over the past decade, driven by demand from emerging markets such as Japan and Brazil, sales within the UK have slowed. “Given its theoretical advantages – including local heritage, authenticity and quality – the question must be asked why malt whisky isn’t performing better,” says Jonny Forsyth, senior drinks analyst at Mintel. He continues, “Even those brands that have invested in their profile, such as Glenfiddich and Talisker, have been guilty of focusing on ‘heather and weather’ imagery rather than the more personable identity projected by the likes of bourbon import, Jack Daniel’s. Such a focus is far from emotionally engaging and feels somewhat tired.”
Certainly when we do our ‘Speed tasting’ events our guests say that they are ‘intimidated by the range of whisky on offer.’ They don’t know where to start when it comes to ordering it at the bar, and they don’t realise that yes you are allowed to drink it long. Mintel’s report bore this out. Says Forsyth, The key to the success of bourbon is that consumers feel that they have more ‘permission’ to drink them with mixers. The same is true of dark rum.” But with whisky it is still not the case, despite the fact that some blends are promoting whisky with ginger ale and coke.
And although the whisky companies main markets are abroad, the UK is still the fourth largest market.
Says Alex Nicol of Spencerfield Spirits, the company behind Pigs Nose and Sheep Dip, “Although we don’t do a lot of advertising, we do, do a lot of sampling. I get as many bartenders as possible to try it. Because customers will see the bottle and the name and ask what it is.”
He continues, “We can do things a bit differently, and we do. I am prepared to take a risk with our marketing, I just wish some of the brand managers in the bigger companies would. But then they are probably worried about losing their jobs.”
He adds, “I’ve got some small casks that are lined with sheep skin, and for instance at the recent Wallace’s trade show, we gave them to licensees buying Sheep Dip, they loved it, and it creates interest on the back bar.”
There are other brands also aimed at a younger market such as Monkey Shoulder, but again although this brand has done an excellent job seeding itself into the conciousness of bartenders has it make an impact on consumers?
Ian Macleod Distillers have also brought out a more contemporary brand in the shape of Smokehead. They believed that there was an “innate conservatism’ in the whisky market and wanted to appeal to modern drinkers.
Speyside’s smallest distillery, Benromach, has certainly created a more contemporary feel to its advertising with its ‘Share the secret’ campaign which actually features male and female drinkers. It has also just expanded its portfolio with the release of three new expressions. David Urquhart tells me that many whisky companies are not advertising but using social media to link in with their potential customers. It has also released some very expensive special bottles of late, and has used younger members of the family to launch them. This again reinforces a more contemporary image of malt whisky.
Glenfiddich too is trying to get to younger consumers. As well as its Malt Mastermind competition it has also been running Mini-mentor evenings in bars, to allow consumers of all ages to ask an expert questions and take part in tastings. Says Jamie Milne, brand ambassador for Glenfiddich, “We do sampling with different aged products, the aim is to show people that older is not necessarily better, and to persuade them that what is important is right for them.”
Next year when I write this article I hope that I will be able to report on some more innovative marketing initiatives. I’ve got a challenge to whisky marketeers, go on take a risk, what have you got to lose? You’ve got it all to gain.