Feature

World Spirits Report 2024: World whisky

10 December 2024 By Rupert Hohwieler

As intrigue in world whisky strengthens, brands are distinguishing themselves in ways other than their country of origin.

“Traditional origin is gradually losing its sheen (albeit slowly) and focus is more on the quality and uniqueness of the liquid,” says Sanjeev Banga, president of international business Radico Khaitan, which makes India’s Rampur.

Adding to the idea that world whiskies are growing into their ability to bring something new to the table, rather than relying on country, Stef Holt, curator of world whisky at Mangrove Global, says brands “aren’t trying to be Scotch anymore. They’re ageing differently, using local ingredients and novel methods to create something new. These producers are pouring their personalities and nuances of the region into their bottles, and the stories coming out, behind the liquids, are fascinating.”

Going a step further, Dawn Davies of the Whisky Exchange thinks we need to move away from the term ‘world whisky’ itself: “It lumps everything into one category, and there are so many different styles out there from the different regions and countries.

“World whisky has been performing well in comparison with the Scotch industry with good growth in New Zealand and Nordic whisky. This reflects the customer’s desire to try new things and to find alternatives to Scotch, which has been steadily increasing in price over the past few years.”

Of The Whisky Exchange, Davies says its “biggest winner this year has been Korean whisky”. She adds: “We launched Ki One this year, which has had a great reception, which supports the trend towards Asian whisky, with Japan softening in sales but China and other countries seeing interest grow.”

A point of difference that world brands can champion is often having a unique climate, where whiskies can be aged quickly and the heat lends to innovative and exciting flavours, as well as a more affordable price. Of the opportunity this creates, Holt says: “They’re still premium, but you’re getting more bang for your buck – and the bang is just as delicious. There’s generally more innovation in world whisky.”

Banga agrees, saying: “Gradually consumers are appreciating that climatic conditions vary and faster maturation in tropical climates make new world whiskies equally good or even better despite not carrying any age statement.”

According to Euromonitor International, Japanese whisky sold 17.8 million nine-litre cases in 2023, and is forecast to surpass 19m in 2025. Demand for Japanese whisky, however, has softened, according to retailer Dekantā. Still, it’s an “exciting time” for the region’s whisky makers, observes Yoshitsugu Komasa, CEO of Kanosuke Distillery. As of 2024, there are more than 100 distilleries operating in Japan.

While challenges such as education, market saturation, the economy and competition exist, including from other categories such as mezcal and Tequila, the outlook is a positive one. “There are still immense growth opportunities,” affirms Banga.

“Thanks to social media and the digital world, consumers are in sync with global trends and consumption patterns,” he continues. “And also, the revival of global travel, as well as the on-trade, provides an opportunity to explore and buy new world whiskies.”

Brands to watch in 2025

Kanosuke

Backed by Diageo, Kanosuke, of Kagoshima, Japan, was here, there and everywhere in 2024, landing in the UK, the US, France and Germany, as it sprinted on with its global expansion plans. Japanese whisky is seeing a surge of craft distillers, with Kanosuke leading the way, and it will be interesting to see how the family-run distillery competes against big brands in major markets next year.

Paul John

Indian whisky has been a red-hot topic in the industry this year, with consumers enamoured by the region’s unique climate and interesting flavours. Goa’s Paul John is confident that there is a lot of potential for the sector, having doubled production of its single malt and a new distillery planned for after 2030. We’re keeping a close eye on its further developments and plans next year, as India takes off as a whiskymaking nation.

Penderyn

Flying the Welsh flag, Penderyn announced itself on the world stage in 2024 with multiple entries into Asia, tapping Nicole Liu (ex-Kavalan) to lead its expansion in the region. Asia represents a vast resource, with plenty of love for whisky, and the brand is also looking to use the region’s ‘favourable trade conditions’ to its advantage, including the UK-Japan Comprehensive Economic Partnership Agreement.