Whiskey Facing Crisis, Surviving Brands Ballantine's and Johnnie Walker Say "Catch Millennials"

Local whiskey sales continued to decline until last year... Only 400,000 cases
International whiskey steadily growing... Ballantine's and Johnnie Walker popular
Millennial generation targeted marketing... New consumer trend strategy

[Asia Economy Reporter Lee Seon-ae] While the domestic local whiskey market is facing a crisis of decline, the international whiskey market is showing growth, deepening the polarization phenomenon. Although more expensive than local whiskey, it is gaining popularity among the millennial generation who value 'value for money (satisfaction relative to price).' Accordingly, companies are devising strategies to overcome the crisis by targeting the new consumer segment for whiskey, the 'millennial generation,' through marketing. They are strategically changing whiskey's image from being 'the drink of the father’s generation' to a beverage enjoyed by young and trendy people.

According to the Korea Liquor Importers Association on the 26th, the domestic international Scotch whiskey market has shown an average annual growth rate of 7% over the past three years (2017?2019). In particular, last year, domestic international Scotch whiskey sales grew by 6.6% compared to the previous year, with malt whiskey (11%) and premium blended whiskey aged 21 years or more (10.8%) driving the growth of the international Scotch whiskey market.

Popular international whiskeys in Korea include Royal Salute, Ballantine’s, and Johnnie Walker. According to Pernod Ricard Korea, Ballantine’s whiskey sales have grown at an average annual rate of 9.2% over the past three years. Johnnie Walker is also well-loved. According to Diageo Korea, total sales of Diageo’s international whiskeys such as Johnnie Walker and Singleton increased by 20% in 2019 compared to 2017, with standard international whiskey sales soaring by 47% in 2019 compared to 2017.

International whiskey is gaining attention as a representative category of 'value for money' enjoyed by the millennial generation. Whiskey is being consumed not only in bars but also in places like home where people enjoy 'hon-sul' (drinking alone) with delicious food or at malt bars specializing in single malt whiskey. This change in whiskey culture shows that whiskey is no longer an expensive, hard-to-access drink but one that many people can easily enjoy together.

Diageo Korea has expanded its distribution channels, which were mainly limited to bars, to include fusion restaurants, izakayas, and accessible franchise stores such as Hanshin Pocha, New York Night Market, and Tudari, where 'Johnnie Walker Highball' is sold. Through this, they are informing young consumers that Johnnie Walker fits anywhere and can be enjoyed lightly together.

A Diageo Korea official said, "In the past, whiskey culture was difficult and enjoyed by a few, but recently it has changed to a culture where many can enjoy whiskey lightly together. In line with this trend, Diageo is always thinking about ways for young consumers to enjoy whiskey more easily and enjoyably," adding, "We will continue to make various efforts to actively communicate with young consumers and lead new trends in whiskey culture."

To target the new consumer segment, the millennial generation, there is also a trend of actively releasing affordable single malt whiskeys. Pernod Ricard Korea introduced the single malt whiskey 'Ballantine’s Single Malt Glenburgie 12 Years' to approach consumers more familiarly. It is competitively priced in the 90,000 KRW range. William Grant & Sons Korea released the 'Glenfiddich Experimental Series,' priced in the low 100,000 KRW range, making it the most affordable among the Glenfiddich series.

On the other hand, local whiskey continues to face a crisis of decline. Industry estimates show that sales volume decreased from 485,201 cases (9ℓ) in 2017 to 444,055 cases in 2018, and further dropped to 409,919 cases last year. Accordingly, the industry is lowering prices.

Golden Blue reduced the ex-factory price of ‘Phantom The White 700ml’ from 31,185 KRW to 21,835 KRW. Drink International lowered the ex-factory price of ‘35 by Imperial’ from 25,112 KRW to 20,669 KRW. Lotte Liquor also reduced the ex-factory price of ‘Escort’ from 24,420 KRW to 22,385 KRW, and ‘Scotch Blue International’ from 26,345 KRW to 24,233 KRW.

This content was produced with the assistance of AI translation services.