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Feature
World whisky finds its feet
World whisky producers hope to capture drinkers’ imaginations, but price and education remain barriers to entry.
*This feature was originally published in the August 2024 issue of The Spirits Business magazine.
While world whisky faces issues plaguing the sector at large, including inflation and overstocking, and has its own set of challenges such as consumer education and product scalability, there is a sense of excitement among those in the category as new producers emerge and established ones take off.
World whisky is finding its audience, albeit a fraction of that of other more widely consumed styles, thanks in part to retailers and bars that have embraced the style with a sense of duty and curation.
“You’ve got lots of distilleries across the board,” Josh Wortman, whisky portfolio director at Distill Ventures, says. “There are more products available. There’s more whisky available. It’s still very small. There are only a handful of retailers that have a section, but that handful is more than zero.”
New and interesting
As Diageo’s business accelerator, Distill Ventures has taken on a number of world brands including Australia’s Starward and Denmark’s Stauning. Wortman says some consumers are willing to spend more money on something new and interesting, especially if it has received an award or some other form of validation.
“World whiskies do tap into that spirit of discovery, of curiosity,” he says, “but there’s still so much work to be done. Where do you put these things on the shelf? What is it that’s going to spark that curiosity in a wall of labels?”
Holly Seidewand opened First Fill Spirits, a boutique whiskey shop in Saratoga Springs, New York, in 2021. She dedicates a portion of her inventory to world whisky, and has been a champion of the category ever since she visited Tasmania, where she encountered brands such as Lark, Sullivans Cove, and Overeem. “I am in a unique position where I have a shop and I’m choosing to hand-sell to everyone and explain what is happening in this category, but it’s actually not a hard sell,” Seidewand said. “It’s about explaining it to people. Because when it’s lumped into a Scotch shelf or an American whiskey shelf, it’s so easy to look past.”
Seidewand says her world whisky sales grew by 37% from 2022 to 2023, and that her top sellers come from Europe and Australia, with Indian whisky growing.
In the spotlight
It will take specialised shops such as First Fill Spirits or establishments like Brooklyn’s Travel Bar, to spotlight world whisky, but the interest is there if the right owner decides to advocate for the category. Mike Vacheresse opened Travel Bar in November 2014. Of his 450-plus whiskies, he says about 50 are world, and that number has climbed over the past two years as brands that he already carried expanded their exports.
“I always say ‘I don’t sell whisky, I sell stories’, and world whisky stories can be very interesting,” Vacheresse said. “A lot of the whisky we sell is the newest we have, which is why we’re constantly buying new whisky. And a lot of that is world whisky.”
For many world brands, without an advocate like Seidewand or Vacheresse, it can be difficult to deliver consumer education. Sam Filmus is president at ImpEx Beverages, which imports world brands such as Indri, M&H, Penderyn, Spirit of Yorkshire. Filmus holds tastings at San Francisco’s The Whisky Shop. He says he’s seen wider acceptance of world whisky since he began to invest in the category a decade ago.
“In the beginning, a lot of people were very sceptical,” he says. “Right now, I think it’s a pretty hot category. We see whiskies from unexpected countries like the Czech Republic. And it’s growing.”
Beyond being lumped with other styles on the shelf, many of these bottles can carry high price tags for what is relatively young whisky. “A lot of customers are looking for the age statement,” Filmus says, which he is able to address when he explains that Indian whiskies, for example, are matured in a very hot climate, which accelerates the process.
It presents a challenge for world brands, many of which operate on a small craft scale, to grow when they need to provide education to sell. “Scarcity continues to drive prices because small distilleries need to try to make some money,” Wortman notes.
Seidewand says pricing has become better for whiskies from India, Australia and New Zealand, and that for people to feel comfortable taking a risk, the spend needs to be between US$80 and US$100.
“There’s a risk. So it’s just that handholding of people understanding what’s going on in different countries. From there, it snowballs,” she says.
In terms of prices, Starward remains a category leader, with a core range that sits between US$35 and US$75.
Founded in 2007, with Distill Ventures making an investment in 2015, the brand remains true to its Australian roots by using local wine barrels in its maturation programme.
Wortman notes the role of “approachability in terms of profile and price”, adding accessibility to the list of barriers that world whisky brands face, “especially, to compete in a hugely competitive category”.
Seidewand notes that Starward’s success has boosted Morris Australian single malt at her store, and Filmus has observed consumer confidence growing, particularly among Scotch drinkers.
Collaboration
World whisky brands are also finding exposure through collaboration. Starward teamed up with Lagavulin for a single malt finished in ex-Scotch barrels, and in May, Bardstown Bourbon Company released a blended whiskey, a portion of which was finished in casks from India’s Amrut Distillery.
“When these brands branch out and collaborate with somebody, that helps with their back catalogue, which is fantastic for me,” Vacheresse says.
The Amrut collaboration has a chance to hook American whiskey drinkers, as does the growing segment of world rye. Vacheresse carries rye from Amrut and Stauning, and the style is also being produced in Germany and Australia. “We have an idea of what rye whiskey is in the US, so it’s exciting seeing that and subcategories of whisky that bring different things to the table because of the places that they’re made in,” Wortman says.
Sense of place
Seidewand likewise emphasises a sense of place when discussing the category’s potential. She notes English whisky has performed better than she anticipated.
“We haven’t even scratched the surface of what is achievable from regionality from a flavour profile or a blending profile,” she says, “because it’s all intertwined with culture and cuisine.”
Specialised bars and retailers will need to spread the word, while world brands work to increase availability and decrease prices. Overall, it’s a category with new players worth championing, even if their reach remains limited. “Breadth of diversity of places makes what we would call world whisky more interesting,” Wortman adds. “This year it’s probably twice as big as it was a couple of years ago. So it’s growing, but small.”
What challenges and opportunities exist for world whisky?
Ryan McFarland – chief commercial and strategy officer, Drinksology
“Challenges include rising input costs, cost-of-living issues, and changing consumer habits, alongside more category-specific challenges such as the capital cost of maturation, the geographically-bound production versus white spirits as an example, or destocking and brand saturation in North America. None of the challenges are new, though, nor are they insurmountable.
“There is reason for optimism. Africa and Asia provide the gateway to future growth; rising GDP, changing consumer trends, and increasing international premium import brands on these continents is engaging new consumers and creating new occasions alongside their ever-burgeoning domestic whisky markets.
“We continue to see premiumisation in many markets, as well as a desire for cultural and flavour fusions, blending traditional techniques with local flavours to create a more modern take on a classic category.”
How can world whiskies leverage their points of differentiation to appeal to new consumers?
Britney Chen – regional brand ambassador and global PR officer, Kavalan
“Kavalan leverages Yilan County’s subtropical climate to craft whiskies with rich, complex flavours. This unique terroir, surrounded by mountains, and facing the Pacific Ocean, accelerates maturation, and distinguishes us globally.
“By combining traditional methods with modern technology, we ensure each bottle meets our high standards, earning the trust of discerning whisky enthusiasts and attracting new consumers. Through storytelling, distillery tours, and a variety of tastings, we engage whisky lovers with diverse interests, deepening connections and making Kavalan accessible worldwide.
“Kavalan leads globally with high standards and innovation under CEO YT Lee. By utilising diverse barrels and pure Snow Mountain water, our whiskies offer unique flavours, and a sweet, persistent aftertaste.”
Interest in world whisky is on the rise. What is your brand’s USP?
Pei Hua Koh – marketing manager, Rachelle The Rabbit Distillery
“Inspired by the enchanting Night Festival of Chichibu Shrine, Yomatsuri Whisky symbolises the ultimate experience of togetherness and joy. From world-renowned Saitama prefecture, this distinctive single malt is a result of over 130 years of traditional brewing techniques and the pure mineral-rich water originating from the Hanno Alps, which has a naturally low temperature, to craft a light, fragrant whisky with notes of caramel and wildflowers, reminiscent of a mountain spring. Every drop of liquid history invites connoisseurs to indulge in the refined taste of Chichibu.”
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