Scotch whisky is an iconic Scottish product which has become known across the globe. The earliest historical reference to distilling in Scotland appears on the Scottish Exchequer Rolls for 1494, where there is an entry of ‘eight bolls of malt to Friar John Cor wherewith to make acquavitae’. The earliest reference to a distillery in the Acts of the Scottish Parliament appears to be in 1690, when mention is made of the famous Ferintosh distillery owned by Duncan Forbes of Culloden.
Rosemary Gallagher, the Scotch Whisky Association’s head of communications, says,
“Today Scotland has around 120 operational Scotch whisky distilleries and sells three times its nearest rival – American whiskey. In recent years, demand for Scotch has been largely steady with exports of around £4 billion annually. Last year saw increased demand following a couple of years of slight decline. Scotch exports were up 4% in value to just over £4 billion from slightly under £3.9bn in 2015, and up 4.8% by volume to 1.2bn bottles from 1.1bn bottles in 2015.” Blended Scotch whisky continues to be the biggest category but it is also good news that single malt Scotch whisky exports have exceeded £1 billion for the first time. “We expect demand to continue to increase,”
says Ms Gallagher,
“and this confidence is reflected in unprecedented investment in the industry, with more than a dozen new Scotch whisky distilleries opening in the last few years and up to 40 further projects at various stages of planning and development.”
Ms Gallagher reports that the USA is the biggest market by value for Scotch whisky, followed by France. However, Scotch is popular in many mature and emerging markets across Europe, Asia, North and South America.
“We are very optimistic about the future of Scotch whisky as demand continues to increase and new markets open up,”
she explains.
“While a traditional product, Scotch is still innovative and new ranges are constantly being launched. There is unprecedented investment in the industry, for example in new distilleries, to meet demand and that brings fresh approaches to the industry. We expect Scotch to remain the world’s most popular whisky.”
Lure of the Irish
Whiskey has been distilled in Ireland since the sixth century. It is one of the oldest spirit drinks in Europe and at its peak in the late 19th century there were 88 licensed distilleries, producing more than 144 million bottles annually. That meant that it was the largest global spirits category of the time. Miriam Mooney, head of the Irish Whiskey Association, explains, “Irish whiskey is protected under both national and EU law, so consumers are guaranteed a high quality premium product produced in Ireland. Irish distilleries work hard to protect the craft and ensure that only the best premium products are supplied to consumers around the world.
“Irish whiskey has carved out its own niche in the global spirits market, relying on the traditional craft of Irish distilling and authentic heritage. The category has focused on building brands with global consumer appeal offering an alternative to Scotch and Bourbon whiskies.”
Demand for Irish whiskey is booming. Global sales have increased by over 300% in the last 10 years making it the fastest growing premium spirit in the world. Exports are expected to double to 144 million bottles a year by 2020 and double again to 288 million bottles by 2030. That is equivalent to over 550 bottles of Irish whiskey being exported every minute. In order to meet this demand, over €1 billion is going to be invested in distillery projects between 2010 and 2025. The increase in demand and investment is also reflected in the increase of the number of distilleries in production. In 2013 there were only four in operation producing and selling Irish whiskey, now there are 16 in production with another 14 with planning permission.
“Irish whiskey is enjoyed by consumers in 135 countries around the globe,”
says Ms Mooney.
“The biggest consumer of Irish whiskey is the United States with nearly half of all bottles making their way across the Atlantic. Closer to home Germany, France and the UK import millions of bottled Irish whiskey every year and there is also demand in Russia and the Baltic countries. “It has developed such a following that Ireland is attracting growing numbers of whiskey tourists who come to visit distilleries and sample the product where it is made. Over 650,000 tourists visit Irish distilleries every year and this number is expected to reach 1.9 million visitors by 2025. In terms of popularity, the only way is up.
“The Irish whiskey industry is the fastest growing premium spirits category in the world. Over the coming years, as production of Irish whiskey increases with the additional capacity from new distilleries, sales will also increase opening up the possibility of pursuing new and emerging markets. Also with the growth in Irish whiskey tourism, its global appeal is expected to increase further.”
Subtropical Taste
The Kavalan Distillery in Taiwan has been dedicated to the art of single malt whisky aged in American oak barrels since 2006. Kavalan takes its name from the original name for Yilan County and is backed by 30 years of beveragemaking thanks to its parent company, King Car Group. The world’s first subtropical whisky distiller, it is a pioneer in making whisky in a hot climate, and has collected more than 190 gold awards. Kavalan’s master blender, Ian Chang, plays an important role in the distillery, tasting and maintaining the quality and consistency of its whiskies every day.
“One of our challenges has been to change the methods of whisky production to suit a hot climate,”
he explains.
“The weather is hot and humid, speeding up our maturation process, which is why we call it ‘maturation redefined.
“A lot of hard work goes behind the accolades we’ve received, which have made people within the industry and consumers seriously take notice of us these past few years. This certainly boosts company morale, as we all work hard to deliver the best whisky we can. The overall effect has been to encourage us to try even harder to bring our fans world-class whisky. In addition, thanks to worldwide support, Kavalan has now expanded and exports to 60 overseas markets.”
The ‘Kavalan Single Malt Classic’ is the company’s best selling whisky.
“This was the first whisky launched on our domestic and overseas markets. To us, it also represents the spirit and flavours of Taiwan. Kavalan whisky is rich in subtropical fruitiness and a floral fragrance that is mainly a product of its maturation in a subtropical climate as well as the type of yeasts used in our fermentation process.
“In addition, we use natural spring water from Snowy Mountain which flows underground and is naturally filtered through tightly packed layers of the earth in the mountains, which makes the water smooth with a natural sweetness to it. This is one of the reasons why consumers experience natural sweetness on the palate. Moreover, the water has a nearly neutral pH with the right hardness, creating optimal conditions for the yeasts to ferment. This is how Kavalan achieves its complexity and creaminess.”
