The popularity of rare whiskies has grown so much that even travel retail wants a piece of the pie. Ashish Gandham, MD of Beam Suntory’s global travel retail division, tells us why
In September, when Changi Airport Group partnered with Lotte Duty Free to launch World of Wines and Spirits (WOWS) — an online platform showcasing the world’s most internationally acclaimed, exclusive and premium wines and spirits — it pointed to a shift in consumers’ tastes for more prestigious and extremely rare labels.
Just how premium? We’re talking bottles in the hundreds of thousands like Scotland’s single malt scotch Bowmore ARC-52 ($130,000), as well as Tales of The Macallan Volume 1: The Laird of Easter Elchies ($120,000), where only one bottle per brand has been made available for the Singapore market.
From now till Dec 31, spirit purveyors are invited to peruse WOWS’ 254-page e-catalogue featuring over 200 of the finest products from more than 75 brands on wows.changiairport.com. The list also includes first-in-the-region rarities like single bottles of Midleton Very Rare Silent Distillery Chapter 3 ($63,000); Richard Hennessy x Berluti ($57,900); The Singleton 54 Paragon of Time II, Single Malt Scotch Whisky ($56,800); and Penfolds 2018 Superblend 802-B Imperial 6L ($20,288).
"Travel Retail is expected to account for approximately 40% of nett projected growth of premium spirits" - Ashish Gandham
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What was very evident in the catalogue’s line-up was a strong presence of single malt Scotch whiskies with close to 20 well-known labels featured in the Rare & Fine category. To find out more about this rise in demand for premium Scotland whiskies, Options interviews Ashish Gandham, MD of Beam Suntory’s Global Travel Retail division.
The American-founded, Japanese multinational company — which produces Suntory — is the third largest producer of distilled beverages worldwide, behind Diageo and Pernod Ricard. It is the licenced distributor for Scotch whiskies like Laphroaig, The Ardmore, Glen Garioch and Bowmore.
How well is whisky doing in the Travel Retail sector?
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Whisky has been one of the biggest and most prominent categories in Travel Retail historically, and hence was also one of the most impacted ones during the pandemic. However, there are micro trends within sub-categories or segments that are emerging, while some pre-pandemic trends are accelerating. For example, Single Malts as a sub-category has consolidated, recovering faster than any other category not just within whisky but across spirits. Along with Cognac, Single Malts is expected to drive overall spirits growth between 2021 and 2026 (CAGR of 20%+). We know that in the longer term, Travel Retail is expected to account for approximately 40% of net projected growth of premium spirits.
How does this impact the way you do business?
We see that for whisky consumers, the retail experience has become critical in this channel. The biggest consumers expect to find more memorable interactions with brands, as well as immersive and experiential touchpoints.
This is further supported by broader trends around Premiumization and Experimentation, which has led to more indulgent spending and broadening of consumer repertoire. Consumers are spending more, and with that there is a desire to gain more knowledge of what they are consuming. All of this is changing the mix within spirits and especially whisky, more towards higher end price segments.
How has consumer behaviour changed towards whisky?
We have started seeing premiumisation and innovation within the whisky repertoire after the pandemic, and more indulgent spending despite fluctuating consumer confidence. As consumers spend more on a bottle of alcohol, they desire to become more knowledgeable about what they are consuming, and these new trends have mainly impacted higher end price segments such as whisky.
We have also seen how education has become more important in some higher-end categories. Consumers are more eager to become more knowledgeable about what they purchase and they’re using the digital channels as a tool to meet this need.
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Consumers are also looking for immersive experiences that can help them to know more about the brand. The digital transformation has played a key role here, not just from an e-commerce perspective but also on how consumers have interacted with the brand through all the different touch points in the full consumer journey, whether in store, at the display or before they travel.
Can you talk about some up-and-coming brands or collectibles?
We’ve made significant changes over the last few years, especially in the Global Travel Retail channel, where we have seen a lot of innovation launching exclusively to Travel Retail. One example is our Aston Martin partnership. Through this partnership’s innovative limited-edition bottle and packaging designs, customers will be able to explore a new visual interpretation of Bowmore as well as gain an insight into the fascinating and intriguing automotive world.
The Bowmore Arc 52, our latest, and most ambitious, collaborative creation between Bowmore and Aston Martin will also be making its way to travel retail, bringing together one of the oldest whiskies released by the distillery with a truly inspiring futuristic vessel to create a provocative object, unlike anything ever seen.
Some upcoming campaigns in the pipeline include the Bowmore Frank Quitely Series, an exclusive new range of whiskies featuring strikingly graphic illustrations inspired by the legends of Islay and Bowmore distillery, imagined by Scottish graphic acclaimed artist Frank Quitely and Bowmore’s Master Blender, Ron Welsh.
The limited-edition series, exclusively available in selected travel retail destinations, features two multi-dimensional whiskies aged 22- and 33-years-old. Both of these whiskies underwent a transformation with finessed maturation in port casks to add a new dimension of flavour that still showcases true Bowmore character at heart.
What key trends do you see emerging?
Premiumisation and sophistication are also some key trends we see in the whisky industry, and we have seen a reflection of these in our portfolio. Brands have introduced a wider portfolio to meet consumer’s appetites in all price segments, not only at the lower range of the ladder, but also at the higher end.
As Bowmore continues on its premiumisation journey, we are seeking different ways to bring our story to life and drive intrigue, as well as desirability. The Global Travel Retail exclusive release supports this approach but also offers the consumer a limited-edition proposition with the most exceptional single malts. Travel retail trends have shown that exclusive products and different to domestic offers become even more relevant than before. Also, in the case of collections such as our upcoming Frank Quitely series, it is a way to establish a real connection with shoppers by bringing to life stories around the provenance linked to the origin and heritage of the brand.
Sustainability is also on trend at the moment, and it has also impacted the spirits category. Consumers are seeking products that can offer a better response for the planet and we’re seeing that this desire to lead real change has been driven by our customers as well.
Sustainability is one of the key focuses at Beam Suntory. We have a big and clear agenda with specific ambitions around water usage, using 100% recyclable packaging across our portfolio or planting more trees than harvested to make our new barrels. In all of these fields we have made steady progress and we’ll continue to strive to achieve our goals by 2030.
