Chivas Regal Aims to Demystify the Blended Whisky Category

31 Mar 2014 --- Deluxe Scotch whisky brand, Chivas Regal, is aiming to demystify the blended whisky category and in doing so help the trade benefit from the huge – and currently untapped – growth potential for premium blended Scotch whiskies in the UK.

The brand has been working closely with both on- and off-trade channels over the past 12 months on large scale educational programmes to help increase knowledge of the category and in turn boost the opportunity to drive sales of blended whisky.

On-trade

Whilst as a total category, the blended whisky segment is in slight decline in volume and value; the premium blended market (average price of over £15.56) is in strong growth, showing real consumer thirst for the products. Chivas Regal is performing strongly in the UK on-trade – the brand has grown 14.8% by volume and 20.0% by value – indicating the huge potential for the blended whisky category within the on-trade channel1.

Currently, however, knowledge of blended whisky amongst consumers is low, highlighting the need to educate drinkers about the category to really capitalise on its potential; as a brand, Chivas Regal sees the on-trade as the best forum in which to achieve this. As a result, the brand has been delivering on-trade educational activities, such as the Art of Blending tastings, at scale over the past 12 months. The brand’s four trained ambassadors – guided by brand ambassador Phil Huckle – have been running the tastings/training and will continue to deliver over 100 more this year across the UK. The on-trade provides a lower risk environment for consumers to sample new products compared with the off-trade, and by educating the trade to more proactively sell blended whisky, consumers can experiment with the style and then make more informed, lower risk choices in both the on-trade and off-trade.

Off-trade

Reflecting the trend in the on-trade, the UK off-trade also highlights a consumer demand for more premium blended whisky offerings. Chivas Regal sees a significant opportunity to continue to grow the premium blended category in the UK; globally it is by far the largest segment of the category but here in the UK traditionally the standard end has remained dominant. However, figures show that standard blends are in decline and the trend towards premiumisation is strong and getting stronger. The strong performance of Chivas Regal in the UK off-trade supports this, with growth in volume of 6.6% and value of 9.1%2.

There is still a clear knowledge gap in the UK around blended whiskies and this presents a challenge to brands – how to educate at point of purchase and impact decision making? Chivas Regal has been working with the off-trade to try and address some of these issues, by telling the category story in-store via educational point of purchase material as well as highlighting the blended whisky story through the grocers’ own media outlets.

Ian Peart, on-trade channel director for spirits, Pernod Ricard UK says: “There are clear challenges around demystifying the blended whisky category but consumer demand for these premium offerings is clear. If we can support the trade through these education programmes, we can look to amplify the potential of the category and really drive an impact on sales. We have only just begun to scratch the surface of premium blended whisky in the UK, but looking at the rest of the globe, it is the category we should be looking at to drive growth and maximise sales potential.”