The Press and Journal (Inverness, Highlands, and Islands)
Chivas cashes in on Far East market thirst
Heavy Far East appetite for topend Scotch whisky has seen Chivas Brothers turn in half-year organic net sales up 23% for 2022.
The period covers July to December 2022 and saw what Chivas terms its “prestige portfolio” up 28%, with Ballantine’s Prestige range growing 81% owing to increased demand across Asian markets and global travel retail (GTR).
That Far East taste for top-notch Scotch saw
Korea, Japan and Taiwan up 59%, 53% and 37% respectively, while Brazil, Colombia and Mexico posted increases of 40%, 30% and 21%.
In European markets, Spain rose 17% and Poland 7%, while North America rose by 6%.
Chivas Brothers is French multi-national Pernod Ricard’s business dedicated solely to Scotch whisky. Its portfolio features single malt and blended Scotch whisky brands, including Chivas, Ballantine’s, Royal
Salute and The Glenlivet, all exported from Scotland to more than 100 countries worldwide.
Chivas Brothers chairman and CEO JeanEtienne Gourgues said: “These positive results reflect the impact of our long-term portfolio elevation and premiumisation strategy.
“It’s a testament to the resilience of Scotch, its bright future and our continued drive to open up the category to new audiences.”
Chivas is the world’s number two Scotch whisky producer, employing 1,600 people across 26 sites including distilleries in Moray and Highlands and its historic Strathisla Distillery in Keith.
One potential cloud on the whisky horizon, however, is the Scottish Government’s consultation document – Restricting alcohol advertising and promotion – which sets out why it wants to cut the industry’s ability to market itself in order to “reduce
appeal of alcohol to our young people”.
The swingeing set of measures might see booze put out of sight in shops as tobacco is today, while paper and online advertising could be curtailed along with alcohol visibility at sporting events.
Some in the industry have slammed the ideas as “damaging” and having a significant knock-on effect for suppliers. More than 100 firms which produce alcohol, including Chivas
Brothers, signed an open letter to Holyrood, saying: “Don’t destroy Scotland’s drinks industry.”
The letter signals concerns surrounding the potential restrictions Holyrood is consulting on. Alcohol producers from across the country spoke out against the proposals with signatories also including Belhaven, Brewdog, Pernod Ricard, The Macallan and Molson Coors.
The consultation runs until March 9.