Scotch is missing its Can-Do spirit
Last Saturday’s FT covered the industry’s current woes in depth. ‘Scotch whisky’s hangover’ is a sobering read, and yet other spirits are suffering as much, if not more. The one category bucking the trend is spirit-based RTDs, a category that Scotch has been slow to enter. Ron Emler investigates for City AM’s Whisky Business. A [...]
Scotch whisky's current decline, dubbed "Scotch whisky's hangover," is not unique. Other spirits are also struggling as changing consumer preferences, health concerns, and financial caution impact the market. However, one beverage category, spirit-based ready-to-drink (RTD) cocktails, is bucking the trend, and Scotch has lagged behind in this area.
Diageo, a major player in the spirits industry, has recognized the potential of RTDs, stating they are one of their biggest strategic priorities and are driving demand at UK festivals. Pernod Ricard also reports a 17% increase in RTD sales, while Suntory's global spirits CEO sees the RTD category as a major growth driver for their company.
Experts predict that the ready-to-drink cocktail market will continue to grow, with IWSR figures showing an 8% compound annual growth rate (CAGR) from 2019-2025, though it may decelerate to 2-3% in the next four years. Scotch's reluctance to embrace RTDs is surprising given its historical adaptability to changing market conditions.
Diageo's CEO acknowledges the company's lag in the RTD market and expresses disappointment in their whiskey offerings in this format. With around half of Scotch and other whiskies being consumed in mixed drinks, there is significant potential for premium RTD whisky offerings.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
