Crisis resistant?

SCOTLAND: Wealthy consumers are thinking twice before investing in new homes or expensive cars. But there’s one luxury some of them haven’t given up: single malt whisky. In fact, sales of Scotland’s national drink are going up in value, particularly in emerging markets such as Asia.

In spite of the financial crisis, “the world will continue to want Scotch whisky”, says Martin Riley, international marketing director of Chivas Brothers. “It’s a very versatile drink,” Riley told the Financial Times.

"The world will continue to want Scotch whisky," says Martin Riley, international marketing manager at Chivas Brothers.

According to the Scotch Whisky Association in Edinburgh, export sales of whisky in the year to August rose 13 per cent over last year, from £1.65 billion in 2007 to £1.86 billion in 2008. This is because sales of expensive single malt and blended whiskies have increased.

As a result, some distilleries are increasing their capacity. The Macallan distillery, in the Speyside region of Scotland, is spending £40 million to build new warehouses and renovate an unused stillroom. Highland whisky producer Glenmorangie has spent £45 million developing its single malts Glenmorangie and Ardbeg, and is reducing its production of bulk whisky, which is sold to distributors who bottle it under their own brand names.

Charles Allen is global malt whisky director of Diageo distillers, the world’s biggest producer of Scotch whisky, and maker of brands such as Cardhu and Johnnie Walker. Allen says that the European market is “tough and difficult”, but in Asia, where whisky is a prestige product, the market is booming. “A lot of people want to express their social standing through the acquisition of imported products,” Allen comments.