Cask and Still Magazine | 41
CHINA’S SCOTCH WHISKY IMPORTS IN NUMBERS
China’s Scotch import market dropped to 26th in 2014
11 26
China’s Scotch import market was 11th in 2011
27%
The biggest drop of 27% in overall volume sales was registered in December 2013
global exports of Scotch had suffered one of the worst falls in the last 15 years. Sales had slumped by 11%, equivalent to a decline in sales of £220 million. The industry blamed the new anti-extravagance measures for the decline in Asia and the Americas, two of the market’s fastest growing regions. Meanwhile, Diageo’s 2013-2014 financial report also blamed the 28% decline in Johnnie Walker sales on the crackdown in China. Chivas also felt the sting, but only saw a drop of 7% in net sales by April 2014. So, was all this whinging just big companies and the SWA playing the blame
game? After all, although the slowdown has been less marked elsewhere, many brands have seen declining sales and profits in other affluent markets. In regard to Canada, without explanation, Diageo decided to re-
enter the whisky market in the autumn of 2012 with single malts such as Talisker, Dalwhinnie, Oban and Lagavulin. The prices, however, had risen in some cases by as much as 30%. Lagavulin 16 was approximately $80 (£45) in 2008, but with its return in 2012 it retailed for $115 (£65) in most provinces. Was it coincidence that it happened just before what appeared to be the bubble bursting in China?
From the average consumer’s perspective, it’s easy to stand on the outside of Scotland’s distilleries and think that the days of them operating Sunday to Friday are long gone. Couple that with the fact that whiskies many once considered affordable are almost out of reach and it’s easy to see why many believe something is simply not right with the whisky industry. The perception seems to be, as one peers at the newest bottle of 50-year- old Scotch encased in an intricate net cage of handcrafted ornate sterling silver, that companies are greedy and don’t care about the consumer. The average consumer sees the bumping up of production and what they think are lower quality products being sold at higher prices. They read about shareholders cashing in on the million dollar baby in their corner before the knock-out blow is delivered, while the highest bidder stands ringside, waving large wads of cash and willing to pay for whatever bottle is being promoted because it doesn’t matter what’s in it. After all, it’s the name and the prestige associated with owning it, isn’t it? But is that the reality? I suppose that depends on who you are: average consumer, high-end buyer, or shareholder. All I know is the cradle seems to be swaying a little faster these days
and, like in the nursery rhyme, the bow will eventually break. When it does and the swaddled bottle of Blue Label falls to the ground, whisky enthusiasts may not be so inclined to pick it up, as they may deem that the million dollar baby is nothing more than a psychological horror film, where promises of sacrifice are made in exchange for success and money.
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