Page 58 - TFWA World Exhibit 2023 Special Edition

INSIDER

So, I’m happy to say that although it’s early
days, I genuinely think American whiskeys,
bourbons, ryes, American malts, and blends
are all going to keep growing.”

U.S. whiskeys grow Latin American
footprint
In a face-off between Scotch and U.S.
whiskey in Latin America, it’s Scotland’s
most famous export that would emerge as
the victor. Last year, the re-exporting hub
of Panama was the seventh biggest value
market for Scotch whisky worldwide,
while Mexico was the ninth biggest volume
market, according to the Scotch Whisky
Association. Yet U.S. whiskey is gaining
ground in the wider region, a trend which
is filtering down into duty free sales trends.
According to IWSR, sales in Latin America
duty free (including the Caribbean and
Mexico), grew 114% last year.
“There’s definitely demand if you look
Woodford Reserve debuted a Sensory Lounge Experience at JFK Terminal 4 in April. at the Caribbean when you consider all the
[U.S.] snowbirds who travel there,” reveals
Duty Free Global’s Kilmartin. “There’s an
opportunity there and then if you consider
the number of Latin Americans that are
Stock availability remains a problem terms of investment to set down against living and working in the U.S., traveling
González’s mention of albeit stock,” says John Kilmartin, vice-president backwards and forwards. We see big
temporary stock availability issues is of sales at travel retail drinks agency Duty potential in markets like Brazil, Mexico
a theme others in the industry echo. Free Global, whose U.S. whiskey portfolio and Argentina. I think we’ll see very
According to the Kentucky Distillers includes Sazerac-owned Buffalo Trace, positive growth figures coming out over the
Association, bourbon production has George T. Stagg, W. L. Weller, 1792, next five years.”
skyrocketed over 360% since the turn Blanton’s and Eagle Rare. “However, when Beam Suntory’s González is also
of the millennium; a record 11.4 million you are ageing whiskey, you can’t just turn upbeat about the Caribbean’s performance
bourbon barrels are ageing in the U.S. state the taps on. The demand is there now and this year– the company forecasts that Jim
but supply is still failing to keep up with more liquid is becoming available but we Beam will grow its duty free sales there by
demand. could probably double or triple it and move 16% in 2023 versus 2022. The Caribbean-
“Sazerac has made huge strides in it through the [duty free] channel. oriented cruise sector is set to be another
“I think from a GTR perspective, strong performer with forecasted growth of
transplanting back to what I see 18% this year with sales volumes expected
internationally both in the on-trade and off- to be higher than in pre-COVID 2019.
trades, there’s been an explosion in demand In contrast, David Rodiek, VP
for American whiskeys,” Kilmartin adds. managing director GTR of Brown-Forman,
“We look for that exploratory phase that the owner of Jack Daniel’s, the best-selling
non-Americans maybe go through which U.S. whiskey in duty free, as well as
would be Scotch whisky, then Irish and Woodford Reserve bourbon, takes a more
maybe into Japanese. I think consumers cautious view of the continent’s progress.
are also now beginning to understand the “Latin America’s recovery had a slower
uniqueness and complexity of American path than other regions due to longer lead
whiskies. times, the FX rate and macroeconomic
“I definitely think that’s translating impact. However, Jack Daniel’s and
into the success we’re having in travel Woodford Reserve demand remains strong
retail in the Americas and outside America. in duty free and domestic markets.”
Rodiek explains that Brown-Forman
is planning to leverage its ongoing
sponsorship of the Formula One McLaren
motor racing team, which was announced
Sazerac announced a $600 million investment in
November 2022 which will be used to construct last year, with Q4 activations at the arrivals
20 new barrel storage warehouses. zones of two Latin American airports
whose cities are hosting F1 races in the

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