Seasoned distillers were in the room with the new guard of industry disruptors; global travel retail experts swapped stories with independent bottlers and cask specialists; brand gurus found common ground with logistics experts. And all of them answered our two big questions: where is whisk(e)y now and where is it going in the year ahead?
The result is a set of real time, must-read insights exploring the challenges, opportunities and hot topics to look out for in 2024, all of which we’ve captured in a new four-part series. First up? Innovation and strategies for growth in 2024
1. Big ideas will start small
Whisk(e)y’s new wave of producers and bottlers will bring a fresh perspective to product innovation in 2024, leading to some serious disruption in the category. For some smaller operators, novelty sells (look at the music-inspired, dynamically packaged Turntable Whisky as great example); plus limited editions, unusual flavours, new grains (or old ones reinvented) and bold cask finishes are all landing well with consumers – in many cases selling better than core ranges. And where these dynamic entrepreneurs lead, expect big player FOMO to follow, fuelling greater levels of experimentation across the wider industry.
2. A new ‘test and learn’ mentality
With some retailers in the USA reporting a growth model for whisk(e)y that’s not dissimilar to the flavour-led gin boom of a decade ago, we’re seeing signs of a new ‘burn bright, burn fast’ mentality when it comes to NPD. In Irish Whiskey in particular, some producers are putting their foot to the innovation pedal to ‘test and learn’ as a savvy way to find which products will stick in their market – whether it’s experimental Pot Still mash bills or stone fruit brandy cask finished whiskies.
3. Tradition holds its appeal
A caveat on the above: for larger players, the appeal of whisk(e)y’s more traditional, premium and purist qualities is going nowhere. With the bar for success so high in terms of volume, the appetite for major risk won’t be there in 2024. So expect some companies to go back to the basics of consistent quality of the core range (their competitive advantage). A good example? Pernod Ricard may have bought a majority stake in Skrewball peanut butter-flavoured whisk(e)y, but their Chivas Brothers arm has unveiled plans to build a distillery on Islay. Innovation and tradition co-existing.
4. It’s not just the liquid that counts
Single malt ‘dram in a can’ anyone? Product strategies will also be about format and packaging, not just liquid, in the quest to offer something genuinely new to consumers. Cans in particular will be a hot topic – not just as an eye-catching innovation but as a green alternative to cardboard and plastic packaging. The Dram in a Can success story was told to our group as a great example: a world first serve of Two Stacks Irish single malt whiskey in a 100ml can format. Initially dismissed as a crazy idea, this was cited as a perfect example of how innovation should work: a genuinely new and differentiated offer bringing benefit to the consumer, and delivering sustained, robust sales of nearly 2 million cans since launch.
5. Sustainability must be the real deal
Product innovation will track even more closely with sustainability in 2024. But it must be genuine, pragmatic and carefully executed – and that it isn’t a simple process. Whilst every business will strive for improvements, there will be tough decisions to make around commercial efficiency, impact and the needs of consumers. There is an increasing concern about greenwashing, and we’ll see more efforts to provide traceability and accountability for environmental claims – without over-marketing to consumers (who will be checking out your green credentials anyway if they’re interested).
