The Conversation JEAN-ETIENNE GOURGUES, CHAIRMAN AND CEO, CHIVAS BROTHERS

The number of barrels of premium whisky distilled by Chivas Brothers, the €2.6 billion Scotch whisky arm of liquor major, Pernod Ricard, outnumbers the 5.5 million population of Scotland. The makers of popular brands such as Chivas Regal, Glenlivet, Ballentine's, Royal Salute and Aberlour contribute 23% to the revenue of their parent, €10 billion Pernod Ricard. Jean-Etienne Gourgues, chairman and CEO, Chivas Brothers, discusses the great shifts in consumer preferences — from premium whiskies to single malts; from flavouring to IMFL. Interview by 

- Ajita Shashidhar

 

THE NEW CONSUMER

Premiumisation is driving growth of the alcoholic beverage industry in India. What are the big trends in other markets?

It is premiumisation at a richer level. What was happening in wines is now happening in whisky. There are many more whisky connoisseurs, collectors and investors, especially in the secondary market. The demand for more than $1,000 whiskies has exploded in the last five years. Sale of whisky in auction houses has reached a peak. Premiumisation is happening in every segment, including the iconic or higher part of the market.

The second big thing is diversification of flavours. There is a strong appetite for flavours made naturally. The flavours depend a lot on the barrel. For instance, sherry, a traditional barrel, gives whisky a fruity and spicy perception. There is also the rum cask, which gives a sweeter perception, and the tequila cask. There has been an increase in choice of aromas. Some prefer sweet while some like drier whisky and that's where you can differentiate. In Mexico, for instance, we have launched Chivas 13, which is aged in a tequila cast. It fits in with the local culture and has helped us get new consumers.

There has also been a rise in consumption of aged whisky across the globe, including in India. There is a cohort of people who are switching from Indian-made foreign liquor to Scotch whisky. Regular Scotch whisky drinkers are opting for higher expressions. We advocate drinking less but better. Last year, we grew sales by 70%, but volumes dipped, showcasing premiumisation.