1. Less loyalty, more control
Whisk(e)y has traditionally been the category where producers tell consumers what they’re going to drink (rather than the other way round as is the case for almost every other spirit). But our group believes that dynamic is changing. All consumer goods are seeing an increased amount of brand switching, so brands need to be ready to get closer to their drinkers as the ties of consumer loyalty continue to loosen.
2. The rise of consumer led New Product Development
Whisk(e)y’s new faster paced NPD puts consumer needs – rather than liquid availability - first, playing around with price, liquid and packaging to find the consumer sweet spot in a given channel. But innovators should be wary of assuming they know what consumers want. Yes, being new is exciting. But drinkers don’t love (or buy) everything that’s new. The whisk(e)y consumer is always changing, so finding concrete ways to track and understand exactly what consumers do want, whether that’s through research, data or market trial will be vital.
3. Liquid on Lips still wins out
Digital departments may be getting bigger, but there’s enduring faith in traditional techniques – storytelling, education and tasting in the real world – for product growth strategies. While global businesses can afford to allocate hundreds of thousands of dollars’ worth of samples to create an entire category – Patron Tequila being a good example - smaller and independent operators have to be more savvy, seeding products carefully and using data to inform which NPD to scale. Global Travel Retail will continue to have a big role to play here, providing brands with a captive audience for sampling and consumer trials.
4. Premiumisation: the price v scarcity balance
The premiumisation trend shows little sign of abating in the coming year, with values up but volumes down as people continue to drink less but drink better (especially younger consumers). There are concerns about over-pricing at the top end – if Scotch whiskies aren’t scarce enough to justify their high prices, then some consumers may look for better value in other markets, such as Japan. The huge marketing investment required to sell super-high end products was also noted as an increasing consideration in releasing products at this end of the market.
5. Online shoppers are looking for a bargain
The cost-of-living crisis means consumers are still hunting for bargains and want to see their cash going further with special offers. E-commerce retailers are getting creative to retain shoppers in the mass market, so expect to see more ‘deals’ such as multi-buy packages subsidised by larger spirits companies (in territories where it's permitted). Smaller bottlers are more likely to bundle their core products in with special editions to help drive sales.
