Analysis: Spirits in global travel retail

30th January, 2018 by admin


Scotch dominates the spirits business in DF and TR, with a 38% market share of the wines and spirits segment based on value. To put this into perspective, the second­-largest spirits category – Cognac – has only half of this market share.

The Scotch category did well in 2016, and single malts led the way. William Grant & Sons’ flagship brand Glenfiddich regained the number one single malt position in value and volume sales in 2016, according to IWSR figures. “We’re also seeing continued rapid growth for Monkey Shoulder with a 95% rise in value sales last year, and The Balvenie grew by 23.8% in 2016,” says Ed Cottrell, managing director of GTR at William Grant & Sons.

Scotch is also thriving for Pernod Ricard Global Travel Retail, strengthened by its popularity in Asia, specifically China, as well as in the US and Eastern Europe. Chivas Regal achieved good growth in markets such as India, Middle East, Turkey, US and Brazil, and the company anticipates this strength will continue.

New DF­ and TR­-exclusive collections set to arrive this year, such as Spirit of Oak from Glengoyne, are also adding excitement. Travelling shoppers looking for variety are tempted by these different offers, while the move away from age statements has given Scotch producers more flexibility to be creative.

André de Almeida, managing director of GTR at Loch Lomond Group, says: “The category continues to grow because the global thirst for whisky remains unquenched. Scotch in particular deserves more attention from the trade, as consumers remain engaged in the category and its growing global appeal – unlike other categories that have a more limited reach.”

Mike Birch, managing director at Bacardi Global Travel Retail, adds: “We see travel retail as a specialist whisky environment, and we are launching several really special and rare single malts in 2017. The past three years have been incredibly exciting for us, and we are only just getting started on what we believe we can do with our single malts.”

Bacardi delivered its Dewar’s Emporium platform in 2017 as a disruptive pop-­up experience in key airport locations including Heathrow, Singapore Changi, Madrid, and Beirut, with more airports still to come.

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