Asia Pacific is ‘extremely encouraging’ for Scotch

Despite the on-going problems experienced by Scotch distillers in China, the wider Asia Pacific region remains “extremely encouraging”, says Edrington’s managing director for the area.

Edrington’s regional MD for Asia Pacific believes there are “extremely encouraging” opportunities for Scotch in the wider Asian marketplace

Speaking to The Spirits Business, Martin Reimann said that international distillers should be optimistic about prospects in a number of countries in the Asia Pacific region, particularly Taiwan, where single malts account for 60% of Scotch sales.

Of the country, Reimann said: “Malts have had a surge in sales, with consumers looking to trade up from standard Scotch blends.”

Many high end Scotch and Cognac producers have experienced significant declines in Asia as a result of an on-going crackdown on conspicuous consumption in China, a key market for most international brown spirit distillers.

Large multinationals such as Diageo and Pernod Ricard have since undertaken de-stocking efforts in the country, while luxury Cognac houses such as Cognac Camus and Remy Martin have also suffered.

However, for Reimann, there are more promising markets in the region. “Across the region we remain extremely encouraged by the pace of awareness in key cities like Hong Kong, Seoul and Taipei,” he said.

“We see opportunities in emerging South East Asia, in countries like Malaysia, Vietnam and Indonesia, accessed via Singapore, and these markets are maturing from a macroeconomic level and in terms of consumption.”

He also added Scotch whisky is broadening its appeal in Asia and attracting consumers from other drinks categories.

“There’s an element of people trading up from deluxe Scotch and sideways from Cognac. I also think malt whisky is starting to appeal to wine connoisseurs.”

For an in-depth look at the Asia Pacific market, see the May issue of The Spirits Business.