Billion bottle record for whisky

The Guardian ^ | 6/13/02 | Simon Bowers

[LarryLied]

Scotch whisky is proving more popular than ever, with more than 1bn bottles of the spirit exported from Scottish distilleries for the first time.

Concerns that sales of whisky were declining in the face of the inexorable rise its Russian rival, vodka, were eased yesterday after the Scottish Whisky Association announced that exports had recovered, and last year reached record levels.

The overseas market for Scotch last year contributed £2.3bn to Britain's balance of payments, with every drop distilled in Scotland and aged, by law, for at least three years.

The chancellor also takes about 70% in tax on the price of a bottle of Scotch bought in Britain, where 115m bottles were drunk last year, making it the third largest whisky market behind Spain and France. France may be the biggest market, but drinkers on the other side of the channel prefer low-price brands, often mixed with a cola to become "le whisky coca" - now more popular among French drinkers than pastis.

It is the Greeks, however, who consume the most Scotch per head, with whisky accounting for more than 42% of the country's combined alcohol consumption.

Ian Good, chairman of the SWA, said 1bn bottles were sold last year to more than 200 countries, making it the most widely exported spirit in the world.

"It is a feat that both the industry and the country can be proud of," he said. "Not bad for a nation of just 5 million people, is it?"

Financial crisis

The whisky industry came tantalisingly close to the 1bn bottle export milestone in 1997, but volumes dropped by 60% the following year as the repercussions of a financial crisis spread throughout much of Asia, a critical market for Scotch.

Since then, however, sales in the far east have returned to strong growth, with World Cup hosts South Korea and Japan leading the rises.

Last year, worldwide exports reached 284m litres, a rise of 2.4% on the previous year, and City drinks analysts forecast that the export market is likely to continue to grow at a steady annual rate of about 1.5%-1.7%.

Foremost among the labels likely to make big gains are international brands such as Johnnie Walker and J&B, owned by Diageo; Ballantine's, owned by Allied Domecq; and Chivas Regal, owned by Pernod Ricard.

Few of the smaller distilleries have the resources to launch the multi-million pound marketing campaigns necessary to develop products abroad. As a result, Scotland's prized single malt whiskys, all of which are produced on a relatively small scale, contribute just a tiny fraction - 6% - to exports.

Iain Grist, commercial director for Chivas Brothers, which makes Chivas Regal whisky, said the success of Scotch overseas, particularly in Asia and parts of Latin America, is down to careful marketing designed to position the ancient highland spirit as a fashionable and highly aspirational luxury brand, popular among a wealthy and trendy set.

The opening this month of New Era, one of Hong Kong's most lavish nightclubs, gave some indication of the popularity of Scotch among this group, with four out of every five spirit drinks ordered being whisky based.

In Japan, Scotch sales grew by a third last year despite a decline in the market for other whisky-style drinks such as bourbon and Japanese locally branded offerings.

Industry experts suggest this is because far eastern drinkers are increasingly drawn to foreign brands seen as exotic and luxurious. They cite an explosion in the popularity of wine among Japanese drinkers in recent years.

Drought fears

Mr Good played down fears that growth in the Scotch market could lead to a whisky drought in future years as stocks dry up. Unlike the manufacture of vodka, where manufacturers can rapidly adjust supply to meet changes in demand, whisky production typically begins 8-10 years before the spirit reaches off-licence shelves.

"Predicting future demand is very tough," Mr Good said. "But the average age of stock remains about eight years, which gives us plenty of capacity. Unless we have the kind of growth we saw in the far east last year on a regular basis, we will meet demand comfortably."

In some markets, Scotch has been a victim of its own success, with rival spirit producers pressuring governments to impose heavy import taxes where there is a fear local distillers are being squeezed out of the market.

Tax reduced

India and China have been forced to reduced tax levels on imported whiskys following pressure from the World Trade Organisation, a move which looks likely to open up these markets for exports.

The increase in the number of bottles sold last year was also matched by a rise in Scotch prices, suggesting drinkers are increasingly prepared to pay more for luxury brands.

The value of the Scotch export market rose 6.4% to £2.3bn - the first time in five years that a jump in value of sales has been greater than the increase in volume. Many see this as further evidence that demand for a wee dram looks set to go from strength to strength.

Export Success

• Greeks drink more Scotch per person than any other country

• More Scotch is sold in a month in France than Cognac in a year

• Scotch accounts for more than 20% of British food and drink exports

• Some 18.5m casks lie maturing in Scottish warehouses

• To be Scotch whisky, the spirit must mature in oak casks in Scotland for at least three years

[Jen]

Pay up.
Ammo costs.

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[RightWhale]

I sure love a good glass or shot.

Been missing that myself for several years, doctor's orders. But owning stock in the industry has often been a good investment especially when times are a little tough.

[okie01]

To be Scotch whisky, the spirit must mature in oak casks in Scotland for at least three years."

But, unlike U.S. bourbon whiskey, Scotch whisky can be aged in used oak casks. Consequently, the distillers in Scotland purchase used cooperage from American distillers and re-use it.

Pre-used cooperage is the very reason why Scotch whisky is lighter in color than bourbon whiskey (or Tennessee sour mash sipping whiskey, which is not the same thing).

Your next sip of Johnny Walker black may have matured in wood that previously housed Jack Daniel's.

Also, note the spelling. Scotsmen make whisky. Kentucky, on the other hand, is famous for its whiskey.

[Beelzebubba]

I helped!

[Beelzebubba]

But, unlike U.S. bourbon whiskey, Scotch whisky can be aged in used oak casks. Consequently, the distillers in Scotland purchase used cooperage from American distillers and re-use it.

Those barrels are typically "used" for wine shipping. In the old days, they would send sherry up from Spain, and the cheapskate Scots would buy up the barrels for their whisky (other times, they would use port baerrels, or claret). Then, they are reused those barrels for more scotch. I am aware of no Scottish distiller that uses barrels that have held American whiskey. Traditionally, shipping them would have been prohibitive, and now, it would make the whisky taste terrible (like whiskey). ;-)

[FatherTorque]

Also, note the spelling. Scotsmen make whisky. Kentucky, on the other hand, is famous for its whiskey.

Actually, the best bourbon made in Kentucky, or anywhere else IMHO, is spelled whisky.

 

[SamAdams76]

Believe it or not, I have never once sipped a scotch. I'm a beer and wine drinker myself. My experience with the harder stuff has not been pleasant so I avoid it. But I think it's because I only had the cheap stuff, like Seagrams 7 or Canadian Club.

What is a good top-shelf brand of scotch for a novice like myself to try? I always wanted to have a good bottle of scotch in the house to serve guests, but it beats me what is good and what is not.

[LarryLied]

Because they are all aged, even the cheap brands of scotch are OK. Try a pony bottle of a few of the expensive blends.

[sinclair]

Johnny Walker Black aged 12 years. Blended Scotch Whisky. I don't like the single malt whiskys. IMO

[Billy_bob_bob]

I would like to recommend Cutty Sark. I've found it to be areasonably priced blend that tastes very similar to the quality single malts, like Glenfiddich or Glenlivet. (I'll probably be flamed into toast for saying that, but what the heck.) Not that Cutty is as good as the single malts, but it's not at all bad for a reasonably priced blended.

And now for some drunken Scottish lout poetry.

"You owe me twenty quid, ya pr!ck!" By Jimmy McGintey.

You owe me twenty quid, ya pr!ck.
Aye you, don't run away!
I lent it to you down the pub
A year ago last May.

What's that you say? We've never met?
You lyin' reprobate!
If I don' get my twenty quid
Yar b@lls are oun a plate!

[Mariner]

Glen Livet or Glen Fiddich are available, top-shelf brands.........around $30-$35/bottle.

Chivas will do in a pinch.....

[Mariner]

Very true.....Cutty Sark is the best of the mid-range blends. Light and sweet.

[southernnorthcarolina]

What is a good top-shelf brand of scotch for a novice like myself to try? I always wanted to have a good bottle of scotch in the house to serve guests, but it beats me what is good and what is not.

Single malts vary wildly in taste. Quite a few seem to attempt to pack as much "character" as possible into a bottle, and what they mean by "character" is the taste of peat and smoke. Malts from Islay, off the west coast of Scotland, not far from Northern Ireland, would largely be in this category. Lagavulin is one of the most famous. Almost liquid smoke, with a strong aroma of peat, and even a whiff (to me, at least) of smells I associate with the ocean. Scotch of this type would most definitely not appeal to a novice. It is very much an acquired taste; some people almost worship it. As for myself, I'll get in the mood for a dram of it once in a while (you should drink it room temperature, either neat or with a small amount of water added), but it's too intense to be my everyday tipple.

For a much more "user friendly" single malt, consider The Balvenie, of the Speyside region of northern Scotland, which makes several varieties. I'm partial to their "DoubleWood," one of their more reasonably-priced bottles (they make some which are quite extravagently priced); 12 years old; derives its name from the fact that it is aged in two different barrels -- first, old bourbon barrels, then sherry barrels. IMHO, this would be a good one for a novice to try: smooth, mellow, some of that "character" previously referred to, but it won't take the top of your head off.

As far as blends are concerned, I'd recommend Dewar's 12-year-old in the premium-but-not-extreme price range. Johnnie Walker Black is heavier, but still smooth. Chivas Regal is overrated, unpleasantly sweet to my taste (obviously, others will differ; in the final analysis, you'll have to decide for yourself after a little sampling).

Moderate-priced Scotches, for consumption on-the-rocks or in a highball with water or club soda: "regular" Dewar's, Famous Grouse, Johnnie Walker Red (Winston Churchill's usual choice, if that matters), and Bell's all work for me. I've always disliked J&B, but that may just be mental; I find its extremely light color off-putting.

Obviously, that's not even the tip of the iceberg. Enjoy your research, in moderation of course!

[zarf]

Macallan's 18 yr old Single Malt. An orgasm in a bottle.

[Cultural Jihad]

[Texasforever]

When I came of age , I did not know a lot about liquor. other than beer, being raised Southern Baptist . My first trip to a real bar my first order was a dry martini for no other reason than that was the only drink name I could think of. Well after the first sip of raw lighter fluid I almost swore off of booze altogether. The bartender suggested scotch and water and I tried it, didn't like it but after 3 I liked the feeling. I acquired the taste and stayed with Scotch for years. I quit hard booze a few years ago and have found that my acquired taste was not permanent. I tried a scotch not too long ago and I really did not like it.

[Andy Ross]

Both Laphroaig and Ardbeg (Islay malts) use bourbon casks. I believe that Lagavulin does too.

The reasoning behind this is that mixing grape and grain (using sherry casks) pollutes the flavour. Using bourbon casks does not have this disadvantage. It does not make the the whisky taste like any of the sour mash whiskeys.

Andrew

[R. Scott]

I never could develop a taste for Scotch - except for one brand a girl friend would receive once a week from a wannabe lover. It cost (in 1975) around $75 a fifth.
I'll just stick with good old American whisky – Jack Daniel's. When I feel affluent it's Single Barrel or Gentleman Jack.

[lavaroise]

But owning stock in the industry has often been a good investment especially when times are a little tough.

Nice picking!! When in recession, usualy alcohol and other entertainment related tickets go up. Look for stock by backs too.

[Prodigal Son]

are reused those barrels for more scotch.

Both Laphroaig and Ardbeg (Islay malts) use bourbon casks. I believe that Lagavulin does too.

I know for a fact that Highland Park (Orkney Islands) uses American whiskey casks- Jim Beam I believe. I believe many distilleries actually use two casks in the aging process. One to age and the other to flavor and color the whisky- many casks come from Spain.

And as far as Islay Whisky, I think (but I won't swear on it) that Bowmore (my favorite whisky) uses them (American casks) as well.

Bowmore still does floor malting, which is becoming a rarity. A bottle of 40 yr old Bowmore at the distillery costs 4,000 British Pounds- compare that to a bottle of 40 yr old Highland Park at 1,000 pounds. But Highland Park (my 2nd favorite) doesn't normally make a 40 yr old- apparantly they found a cask that was lost for 15 yrs so that was a special edition.

If you're ever in Scotland, definitely do visit a distillery and preferably one that still does floor malting (so you can see the original process). It's very interesting (plus you get a free dram afterwards). Highland Park distillery for example has a lot of the mold on the walls that at one time gave away illegal whisky making operations to gov't inspectors- this particular brand of mold only grows in the presence of whisky making- no joke.

[Prodigal Son]

An interesting thing about Scoth whisky is the smell is very important- like a good wine. When I order a dram, I often spend a few minutes just sniffing it before I sip it.

If you want to get into what is truly the art of Scotch whisky, you ought to shoot for a single malt whisky instead of a blended (malt). Johnny Walker Black is very good but it is still a blended whisky (one of the better ones actually). Higland Park, Bowmore, Lagavulin and Laphroig are all good recommends.

When you're dealing with a single malt, the chief whisky maker has inspected the grain and selected it himself. If you get a whisky that was floor malted in the distillery, the whisky maker has also overseen this process (the grain is moistened and laid out on the floor and hand turned until it starts to germinate and at a precise tempeture it is directed to the next step in the whisky making procedure).

Also, the fine Scotch whisky makers use peat instead of wood as fuel for the fire- this is traditional and comes from the lack of wood in places like the Hebrides Islands but it makes for distinctive flavor. They all have their own traditional method and believe it or not, you really can taste the difference between these methods. Bowmore, grinds their peat up into a powder like substance- Highland Park shovels larger chunks of peat onto the fire. The peat is usually local which also has a determining factor on taste. The last ingrediant is the whisky maker himself. This job is often handed down from one generation to the next. His taste was groomed by the area in which he grew up- his tastings determine the outcome of the company's finished product.

Whisky is a very individual product, and the whisky drinker will want to search and find the one that's right for him/her. That's practically the best part in my opinion- the searching. It's good to know too, though, exactly what you're going to get when you break the seal on you favorite malt.

[tdadams]

I was about to be disappointed if I didn't see anyone recommend Macallan's. The 18 year old is about the finest Scotch you could try.

[tdadams]

What is a good top-shelf brand of scotch for a novice like myself to try?

Scotch isn't my usual drink, but Macallen's 18 year old is excellent and Talisker is good as well.

[AppyPappy]

For a good cheap everyday scotch, try Duggan's Dew. It's the easiest of the cheap scotches ($10 a fifth here). I've had Johnny Blue Label and it wasn't 15 times better than DD.

[ArrogantBustard]

One Tequila, Two Tequila, Three Tequila, Floor!

[okie01]

"I am aware of no Scottish distiller that uses barrels that have held American whiskey."

Nonetheless, some do. At least, they did thirty years ago. I was told this by the president of an American distillery.

[okie01]

Hmmm. You are correct. Wherever did I get that notion...?

[Oschisms]

I expect a personal thank you from the Scotch Distillers Association, if there is such a thing.