Jameson expands its offering and underlines its dominance
Patience Gould checks out the Jameson act to date. Billed as the fastest growing premium spirits brand, the world has been its oyster – but all this is about to change.
While Vodka continues to steal the show, and rum as well as Tequila continue to be touted as the future sensations, Irish whiskey has quietly crept up the spirits orders. Indeed, between 2000 and 2009 Irish whiskey has grown at a compound growth rate of 6% to a category that amounts to over 4.4 million cases a year. This growth can be almost entirely attributed to the ongoing success of one brand, namely Pernod Ricard’s Jameson.
Over the same period Jameson boasts an annual growth rate of 9% and extraordinarily accounts for 60% of total Irish whiskey sales and clearly if the French multinational has anything to do with it – this growth will be maintained. Since the late 1990s it has been the sole representative for Irish whiskey in the Brand Champions league, and although this may come to an end over the next few years with the now William Grant-owned Tullamore Dew closing down on the one million case barrier – Jameson’s in all likelihood will be well over the three million case mark by then.
“It’s been an amazing journey since 1998 – I joined then when we were focused on getting the brand really established in the US,” says Conner McQuaid, international commercial director at Irish Distillers Pernod Ricard. “Initially we started in Lower Manhattan – getting the brand talked about – getting the glass in hand and getting word of mouth going.”
Twelve years on and Jameson has moved out of the traditional stamping grounds for Irish whiskey in the US, like New York and Boston, and its biggest market now is California. Such has the growth been in the market that Jameson is now on track to break through the one million-case barrier and attain national brand status. The new advertising campaign George Jameson which was launched towards the close of last year has been hugely successful. “All the indications are that we have hit the bull’s eye,” says McQuaid. “Jameson has more than repaid the faith and investment Pernod Ricard has had and put into the brand’s development.”
Since 2003 its growth has been unabated according to the Brand Champion League and although it stood still last year, in Pernod Ricard’s financial year ending June 2010 – it posted a double digit growth – 12% – and along with Cognac Martell the only two of the Top 14 was the only other with a double-digit increase. Furthermore it’s had a stonking first quarter with sales up by an impressive 27% in the three months ending September.
Outside its strongholds in the US and Western Europe South Africa and Russia are Jameson’s two key developing markets, and in South Africa the brand is really “taking hold”. While at first sight these markets do not strike one as being remotely similar – they do share specific attributes which are ideal for Jameson. “Both markets have an emerging middle class and they are focused on Western goods,” says McQuaid. “Russia has its vodka heritage so the taste profile of Jameson’s is perfect. In South Africa it’s becoming a fashion brand.”
No surprises then that South Africa has been selected for the launch of Jameson Select Reserve – it’s a market where the brand is growing at an annual compound rate of 24% over the last 10 years, and clearly Irish Distillers PR has every intention of maintaining the momentum. Select Reserve is not the only line extension in the Jameson portfolio. In September the company announced that its much-lauded Redbreast 15 Year Old Irish Pure Pot Still whiskey is to become a permanent fixture in its portfolio in key markets including Ireland, the US, France and Germany.
This is all part of Irish Distillers’ plan to extend its offering from the Old Midleton Distillery. “It is a unique centre of excellence and we want to bring this to the fore,” says McQuaid. It’s probably no coincidence that the company is expanding its whiskey portfolio. For a long time the Irish whiskey category was Jameson’s very own stamping ground but recently other players – attracted by the growth and rich pickings to be had – have moved into the fray. Independent William Grant has bagged the C&C Group-owned Tullamore Dew and Pernod Ricard sold its Northern Irish whiskey Bushmills to Diageo. Both have evident future intentions – and both hope to give Jameson a run for its money.
“We welcome the competition and we’re ready for it,” says McQuaid. “Others coming into the play will raise the bar – and that’s good for the market as a whole.” Time will of course tell whether Tullamore Dew and Bushmills – currently the number two and three brands – will become serious rivals to Jameson. Clearly Jameson has a head start on proceedings and clearly Irish Distillers has a lot more goodies up its sleeve – but in two years time the Brand Champion league in 2011 could well feature another Irish whiskey in the millionaire stakes – and the big money is on William Grant’s Tullamore Dew. And then there’s the Diageo-owned Bushmills which is mounting a serious charge. sb
