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China’s growing love affair with whisky
It may be a cliché now, but talk to a Scot on the pleasures of drinking whisky, and they won’t shy away from repeating the familiar ode: “It’s the water of life.”
While there may be an element of exaggeration to that, there is no denying that if you enjoy the finer nuances of life — and can afford it — it can become the journey of a lifetime.
Understandably then, distillers and promoters of whisky from around the world are keen to tap into emerging markets, preaching the qualities of the drink to the growing middle class, while building up a connoisseurs’ club of fine taste.
According to the Scotch Whisky Association, scotch exports rose to 4.3 billion British pounds (US$5.8 billion) in 2012 with direct sales to China alone increasing by 8 percent.
“We are appealing to the emerging markets ... the affluent, middle-class people who are aspirational, people who see scotch whisky as the drink of choice,” Gavin Hewitt, chief executive of the Scotch Whisky Association, has said. “They can afford it, and it means they’re part of a global network.”
That’s the catch — affordability and taste. And China makes for both.
If statistics are anything to go by, 80 percent of Chinese millionaires are below 45 years old, a much younger profile than that in the United States, according to a 2012 Sky News report.
“This year’s Whisky Live Shanghai offered an excellent insight into the growing base of consumers,” says Ryan S. Pearce, vice president of Renaissance Lifestyle.
“I spoke to collectors in their mid- to late 20s (and) repeat customers who are in their 40s-50s, both of which are buying high-end, rare single malts, as well as the younger crowd who are just getting into the scene and full of questions,” Pearce says. “There is also a crowd of women at 30-50 years old who are becoming more and more interested in this predominantly ‘male’ drink category in Asia. I find this wonderfully refreshing as whisky isn’t a ‘man’s drink,’ it’s for all.”
With their buying power, most Chinese are interested in brands with real heritage, history, craftsmanship and substance.
“The whisky my company provides is mainly extra-rare single malt scotch whisky from a variety of well-known distillers. We don’t advertise much as they are extremely rare and quite expensive,” says Pearce, clearly defining his elite clientele.
“I believe that the Chinese consumer is becoming more enamored by the history, appeal and varied depths of flavors that not only whisky blends offer but more and more single malts that are available in China.”
Mabel Wong McCormick, marketing director of Remy Cointreau Greater China, shares similar optimism and believes traditional authentic single malt whisky will be well received by the connoisseur consumer.
“We are looking at seasoned whisky drinkers,” McCormick says in an e-mail interview with Shanghai Daily. “They probably have been drinking whisky, or rather single malt whisky, or even Islay for three years and more, and they have a clear preference for single malt whisky. Some are even enthusiasts for single malt scotch. For those seasoned consumers who are after quality and authentic products, we will offer our products to them.”
Producers plan to ramp up further production as the number of whisky drinkers rises in Asia. According to McCormick, International Wine & Spirit Research, a leading supplier of data and market intelligence on alcoholic drinks markets worldwide, has indicated that single malt whisky has increased significantly in China, especially for super/ultra-premium products. But single malt scotch is still a niche category, with 100,000 cases sold in China in 2012, accounting for 5 percent of the total imported whisky market. Yet with a 33-percent growth rate, it is still 13 times faster than the growth rate of the total whisky market.
“In China when we launch, there will be five products, including Bruichladdich Scottish Barley, Bruichladdich Islay Barley, Port Charlotte Scottish Barley, Black Art 4.1 and Octomore 6.1, as portfolio to satisfy the connoisseur consumers in China,” McCormick says.
Roller-coaster experience
Remy Cointreau acquired Bruichladdich distillery in Islay Island in 2012.
But the growth here has not been easy, experiencing sort of a roller-coaster ride. Blended whisky is ubiquitous in China, especially in the KTVs, bars, etc. In the early part of the decade, when the Chinese were developing a taste for whisky, the cognoscente frowned at the sight of green tea being poured into whisky. It took much persuasion and even “education” to try and convince them to take a more refined approach to their whisky.
“As a purist and whisky educator, I think education is the best way forward, to help people really understand how to enjoy the whisky and in most instances the varied levels of aromas, flavors and finishes that come with a great whisky,” says Pearce, who has been involved in whisky education in China.
“A primary focus in this job has been helping the imbibers understand the background of whisky, how it’s distilled and how best to enjoy a dram.”
Whiskies from different distilleries have a character of their own. Scotland is way ahead of the others, offering a huge range of whiskies with different tastes and flavors — from the graceful and floral to the hard hitting and medicinal. While Scotch malt whisky is made from barley, Bourbon distinguishes itself by being made from corn and rye.
In Ireland, they used unmalted barley to produce their own unique flavor. Whiskies from Japan and Sweden are aged in locally produced oak casks, and in Sweden they also use juniper berries for flavor.
“I hope that brands take the time and effort to properly execute, as opposed to taking the uninspiring, banal route of showing a certain target consumer group just drinking and smiling in a club with a well-positioned bottle of whisky in the frame,” Pearce says.
The need for proper “schooling” to enjoy the subtle differences and niceties of whisky has made room for auxiliary ventures that supplement the industry. China Single Malt Club and Aroma Academy offers training kits that claim to “unlock the sense of smell.”
“We help those who sell whisky with our product, which is an aroma nosing kit,” says Kim Lahiri of UK-based Aroma Academy. “This helps the user train their nose to be able to pick out the individual aroma notes that are part of a whisky’s key aroma profile.”
The whisky market in China is still in its infancy, adds Lahiri, “but there is huge potential in this market as the growth of the country continues and the new middle classes look to find something different and more premium to drink.”
In keeping with the times, a China Whisky Guide App was launched at the Shanghai 2013 Whisky Live event last month. Now, for the first time, there is a comprehensive guide to the world’s whiskies. It’s a first for China and is set to change the way the country engages with the water of life.
“The China Whisky Guide App is fundamental to finally seeding the whisky category correctly in a market with a limited foreign drinks culture,” events director Stephen Notman says.
A total of 120 single malts and blends were judged out of 100. The results, including localized tasting notes, were published through the app, weibo (microblog) and weixin (WeChat), giving Chinese users the first official guide to whisky in China’s mainland.
Notman has adjusted his tasting vocabulary, too, in basing his judgments. Rose petals, earthy pear and Xinjiang dried fruits replaced traditional flavors such as Turkish delight and Christmas cake.
“I took into account the taste profile of Asia, where people don’t necessarily want those big, smoky whiskies,” says Notman, who is the youngest serving Keeper of the Quaich — a title once held by former US President Ronald Reagan, among others.
Besides, with other popular spirits like wine and beer aggressively marketing their products in China, it is quiet a task maintaining the Chinese love affair with whisky.
“It’s difficult to compare beer, wine and whisky as they are very different drinks. Whisky can work great as an aperitif, paired with food, and a digestive post-meal. However, this is a very new concept to the local consumer,” says Pearce.
“What’s important is that whisky is marketed to all and is accessible. Whisky is for all occasions and all types of consumers, you just need to find the right whisky for the right occasion. The local consumer responds well to a consistently branded product where all aspects appear high quality.”
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