Whisky focus: The problem with blends

It is time to investigate the curious case of blended whisky. It is a strange one indeed. For a start, let's look at the facts:

• Blended whisky, or scotch, is one of the mainstays of the British drinks industry. • The category represents 12 per cent of total spirits consumed in the UK on-trade (second only to vodka, which has a 35 per cent share of on-trade spirits).

And yet scotch is not enjoying the best of times in the on-trade. It may have wide distribution but sales have been consistently falling for some years and it does not get retailers excited.

One buyer from a large regional brewer and pub company told me simply: "It is not a major area of focus. It is almost a forgotten category."

The statistics don't make for much better reading for the brand owners, with Nielsen figures from May showing blends down 11 per cent year on year.So why is blended whisky enduring such a tough time? For James Pennefather, whisky brand director at Diageo, it is simply down to image. "For the 20 to 30-year-old there is a real image problem with blends," he says.

"The growth in the on-trade comes from the high street and those consumers do not drink blended scotch. The parts of the category that are doing well are bourbon and Irish whiskey - their flavour profiles mean they mix much better."

And here James has hit on the crucial point. Conventional wisdom tells you that scotch doesn't mix with anything more adventurous than cola.

As a result a lot of brand owners are almost trying to forget about the idea of whisky and mixing and trying to attract younger drinkers.

Emma Heath, brand manager for The Famous Grouse, says blends are typically chosen by the 'silver foxes' out there. "The typical blends drinker would be male and aged 45 or over," she says. "They drink whisky straight, on ice or with water."

Diageo has come to the same conclusion, as James explains: "We think the opportunity to increase sales in whisky is through 40 to 50-year-olds - we can really accelerate growth there." In search of the perfect mix

But have Maxxium and Diageo given up on mixing too quickly? Other brands in the market have demonstrated that looking hard for a good mix and marketing it well can pay dividends.

The leading light in this regard, as far as pubs are concerned, is Pernod Ricard UK (PRUK) and its Jameson Irish whiskey brand.

Jameson & ginger was a mix that, according to PRUK, was first put together in Ireland in 1851. But in the past 18 months the company has been heavily pushing the mix as a perfect serve.

And according to Nielsen data for June and July Jameson is in 1.7 per cent MAT growth - a demonstration that with the right product and right mix, success with standard whisky in pubs is possible.

Other brand owners are looking to do the same. Beam Global UK, for example, has worked hard on finding the right mixing matches for Teacher's.

It is starting to roll out suggestions to licensees, such as Tall Teacher's, which contains lime cordial and soda, and TLC, a mix of lime cordial and cola.

Mixing the Monkey

A new brand out on the market that has picked up on this need to create the right product for mixing is Monkey Shoulder. Unlike other whiskies with designs on the premium end of the market, Monkey Shoulder encourages mixing, according to Rob Curteis, innovation manager at William Grant, which owns the brand.

"We're trying to break down the barriers of the whisky category. We created Monkey Shoulder to attract the younger target market and we say, 'drink it however you want'," he says.

"Some whiskies are very difficult to mix. You simply will not get a clean, well-balanced mix with a strong Islay malt. But Monkey Shoulder keeps its flavours when mixed."Waiting for the Magners moment

What is undeniable is that scotch whisky needs an injection of something - be that a simple bit of luck or some incredible innovation. To that end members of the whisky fraternity have set up a working party, called the Scotch Innovation Working Party. Participants include Diageo, William Grants, Inver House, Burn Stewart and the Scotch Whisky Association. 

Indeed, whisky consultant Dominic Roskrow believes a resurgence for blends could well be around the corner. He says: "I'm convinced there will be a moment in blends very soon where we will see a Magners effect - so do not write them off." N