American consumers may have embraced whisk(e)y over the past two decades, but that enthusiasm largely hasn’t centered on blended Scotch. There are exceptions, of course—brands that have grown and solidified their status—but overall volume has struggled to remain relevant to the current generation.
Depletions of blended Scotch over the past two decades have tumbled by about 4 million cases from 9.5 million cases in 1993 to 5.5 million cases in 2023, according to Impact Databank. But despite those figures, many marketers are confident. “We remain optimistic and predict a return to growth as the U.S. market continues to normalize,” says Kristen Colonna, vice president of marketing accelerator and brand marketing at Pernod Ricard USA, which imports Chivas Regal and Royal Salute. “Blended Scotches can offer greater complexity and more scope [than single malts] for experimentation. As preferences change and a new generation of consumers looks for more interesting whiskies, blended Scotch is welcoming new audiences with innovative new products, which can serve as a gateway to a brand and even the beginning of a journey exploring everything the category has to offer.”
Josh Dean, vice president of Johnnie Walker and Buchanan’s at Diageo North America, notes the comparative success of certain brands. “Consumers are continuing to explore and embrace the category and are looking for better options, and we continue to see growth in the more premium segments where our brands sit,” he says. Leading brands haven’t been immune to the category downturn, although individual performances vary significantly. Johnnie Walker, by far the category leader at 1.95 million cases in 2023, fell 2.5% last year but has largely retained its volume in recent years. Five year aggregate growth for the brand came in at 0.4%, according to Impact Databank. “Consumers’ desire to premiumize is a critical driver for growth,” notes Dean.
Johnnie Walker’s portfolio-mate Buchanan’s, the No. 3 brand in the U.S., has bucked the trend and turned in strong growth in recent years. The brand advanced at a 6.8% growth rate over the past five years, and last year turned in a whopping 16% increase to reach 760,000 cases. Dean credits the brand’s flavor portfolio, including recently launched Pineapple, and global celebrity partnerships for the extraordinary growth. Indeed, Buchanan’s Pineapple, is a rarity in the U.S. market, where there are virtually no flavored Scotch whiskies. In its first year on the market, Buchanan’s Pineapple moved 50,000 cases. Now that it’s in its second year, competitors will be watching carefully to see whether it’s a long term phenomenon.
Second-ranked Dewar’s from Bacardi USA has struggled a bit more, turning in a 3% average annual decline for the 2018- 2023 period, and an 18.9% drop last year to 870,000 cases. Brian Cox, North American vice president for Dewar’s Scotch, says premiumization within the brand is helping. “The positive Nielsen and other internal indicators we are seeing behind our 12-, 15-, and 19-year-old variants of Dewar’s are very encouraging,” he says.
Other leading brands have lost volume in recent years, the notable exception being Monkey Shoulder, which is technically a blended malt, but a blend nonetheless. The William Grant & Sons USA brand has more than doubled volume over the past five years and, despite declining in 2023, has been one of the highlights among leading brands in the blended Scotch category. “Monkey Shoulder is shaking up the whisky landscape, especially in the super-premium blended Scotch category,” says brand manager Giulia Friedman.
Meanwhile, Gallo’s spirits division, Spirit of Gallo—which handles The Dalmore and Jura single malt Scotches—markets blended Scotch John Barr, which was up 15% in 2023 to 73,000 cases and has seen steady growth over the past three years.
Marketers point to premiumization as a saving grace in a struggling sector, with some super-premium and luxury brands or expressions bucking the downward trend. On the whole, that premiumization trend is continuing this year. Scotch whisky exports to the U.S. were down 3.5% to £421.4 million ($552.74 million) in the first half of this year, according to the Scotch Whisky Association (SWA), with volume slipping 7.6% to 4.6 million cases.
“Blended Scotch whisky is premiumizing,” says Cox. “The challenges the segment faces are primarily at the value end, especially in the U.S., where bottled Scotch whisky under $20 a 750-ml. is more affected than the imported, bottled-in-Scotland segment. Premium aged marques, 12 years and older, now make up over half of the category, with 18-year-old and above whiskies being particularly dynamic, especially for blended Scotch—not just single malts.” Cox adds that while the category faces challenges related to post-pandemic inventory levels, consumers are trading up, including new consumers. He’s not alone in saying the key for the future of blended Scotch is recruiting new consumers.
Forging Connections
Despite positive outlook statements, most marketers acknowledge the need for better consumer connections and more usage occasions to bring a broader range of drinkers into the fold. Terrence Tompkins, COO of Seattle retail store Downtown Spirits, suggests marketers should “get celebrity influencers to rave about how amazing a given Scotch brand is on their feeds.” That is, perhaps, easier said than done, but marketers are trying that approach and others to woo new consumers.
“This year and into 2025, our goal is to engage with bartenders and cultural influencers to raise awareness, trial more consumers in an environment that brings the brand to life, and improve visibility of the brand in spirit drinkers’ lives on-trade and off-trade,” says Friedman. “In 2025, we’ll be continuing our second year of Studio Monkey Shoulder and continuing to show up at events in the on-premise throughout the country with our drink jockey. These two assets will immediately grab consumer attention, helping Monkey Shoulder whisky continue to stand out from the crowd.”
For Dewar’s, Cox is also focused on attracting new consumers. “Some may view the blended Scotch category as exclusive or not fitting into their lifestyle,” he suggests. “Dewar’s is addressing these perceptions by tapping into cultural occasions and moments that resonate with today’s audience, making Scotch more accessible and engaging.”
Cox points to Dewar’s partnership with the USGA’s U.S. Open golf championship, which he calls the brand’s “biggest cultural tentpole event.” Around that event, “we build an integrated 360° marketing campaign that allows us to connect with audiences in contexts that align with our brand values, combining tradition with modernity,” he says. “We leverage data-driven insights to tailor our messaging and ensure we resonate with evolving consumer preferences.”
That approach includes highlighting premium offerings and promoting the versatility of Scotch whisky in cocktails. “Our marketing initiatives aim to demystify Scotch for new drinkers, showcasing the breadth of our portfolio and emphasizing the accessibility and enjoyment of blended Scotch in various forms, while also recruiting established premium and super-premium Scotch drinkers at higher quality levels,” Cox says.
Diageo’s Dean is also bullish on Scotch-based cocktails. “What’s interesting about the Scotch category is the growing trend to innovate beyond its traditional way of being enjoyed as either a neat pour or on the rocks,” he says. “We’re seeing consumer interest in cocktail menus and innovations from restaurants, bars, and more, tying Scotch to even more social occasions.”
In addition, for Buchanan’s in particular, Diageo is seeing new consumers embrace the brand’s flavor range. “Creating new product innovations like Buchanan’s Pineapple and expanding flavor based on consumer trends and insights also shows the unique way our category can innovate to resonate with consumers,” Dean says.
Elsewhere, Buchanan’s continues to target the Hispanic consumer. The brand’s 2023 holiday campaign, called We Are the Spirit of the 200%, celebrated how bicultural Hispanic American consumers mix their traditions from back home with new traditions in the U.S., with talent from diverse key markets to showcase the breadth of what it’s like to be a “200%er”—100% Hispanic and 100% American. The effort will expand this year with activations around the Noche Buena holiday.
For Johnnie Walker, the latest in a “new era of partnerships” is that Blue Label is now the official spirits partner of the 76th Emmy Awards. “Our partnerships this year, spanning culinary arts, entertainment, and fashion, will center around collaborations to help reshape people’s perspectives around traditional whisky tropes,” Dean says.
New Expressions
New, upscale expressions are also part of the ongoing plans for Scotch marketers as they look to keep the offer fresh and inviting for consumers. “For Johnnie Walker, consumers’ desire to premiumize is a critical driver for growth,” notes Dean. Johnnie Walker Blue, the brand’s long-standing luxury line extension, is a key vehicle. “We’re excited to evolve Blue Label’s role in culture, specifically through unexpected and fresh new takes on standard cocktails and experiences to attract a broader audience and reignite interest in luxury Scotch,” he says. “We’re continuing to uplevel our premium offerings for our consumers with a new series of Blue Label expressions.”
That includes Johnnie Walker Blue Label Elusive Umami ($400 a 750-ml.), launched last October, as well as limited-time offerings, such as the annual Lunar New Year Blue Label bottle. Such products “are crucial in building excitement around our premium offerings and enhancing their appeal as desirable gifts,” Dean adds. “These offerings encourage consumers to engage in shared experiences and moments of celebration we create within the community.”
Pernod Ricard’s Royal Salute brand is partnering with fashion designer Harris Reed on a fall 2024 release. The designer “took inspiration from his own signature headpieces and Royal Salute’s heritage story to create a modern interpretation of a royal crown adorning each bottle,” Colonna notes. Developed in collaboration with Royal Salute Master Blender Sandy Hyslop, the new Royal Salute 21-year-old Harris Reed Edition ($300 a 750-ml.) launched alongside an exclusive fashion collection by Reed that offers three distinct looks evoking a modern take on royalty. Last year Pernod Ricard launched Royal Salute’s Polo Collection ($270), finished in a blend of classic first-fill Bourbon and first-fill rye casks.
Also from Pernod Ricard, last year saw the launch of Chivas Regal XV ($50 a 750-ml.), a 15-year-old Scotch selectively finished in French oak. Looking ahead, Colonna says Chivas Regal will build on its partnership with Hispanic-owned food company Goya and the Chivas 12-year-old x Goya “Golden Summer” VAP is expected to continue in key U.S. markets in summer 2025.
For Dewar’s, Cox says the brand is embracing innovation with unique cask finishes to meet the growing demand for discovery and premium spirits. “A great example is our recently re-released Dewar’s 12-year-old, which highlights our commitment to quality while offering versatility,” he says. “It’s ideal for cocktail creativity and invites newcomers to explore Scotch in fresh and modern ways.”
At the luxury end, Dewar’s is focused on the Double Double series, including Double Double 37-year-old ($1,800 a 375-ml.) and the newly launched Double Double 38-year-old ($2,200), which have been critical in “redefining our position” within the category, Cox says. “These ultra-premium expressions showcase the depth and breadth of flavor that modern consumers crave, aligning with the trend toward high-end, sophisticated spirits,” he adds.
Compass Box, the artisan Scotch whisky company whose stated mission is to “make the world of Scotch whisky a more interesting place,” launched two new expressions earlier this year—Nectarocity ($65 a 750-ml.) and Crimson Casks ($75)—that form half of its “reimagined core collection.” That collection also includes existing blends Orchard House ($55) and The Peat Monster ($65).
“With this new Core Collection, we bring together the world of whisky at its most compelling,” director of whisky making James Saxon said in a press release announcing the reimagined range. “Nectarosity offers a riot of tasting notes, evoking the deliciousness and audacity of high-end patisseries, while Crimson Casks leads with its Sherry-influenced richness and an enticing, spicy finish. Combined with the fragrant, crisp flavors of Orchard House and the sweet smoke of the aromatic and complex Peat Monster, the range satisfies on every level.”
While new expressions add some vitality to the lineups from major producers, support can be lacking, according to Steven Huddleston, managing director of beverage and bar education at STIR by SquareOne Holding in Chattanooga, Tennessee. He suggests an altered approach. “It’s not about the finishes that move the needle but the brand investment in store activations, social media partnerships, and staff education,” Huddleston says. “Bar and restaurant staff education is the No.-1 way to help drive traffic and move the needle in the response of increasing or improving awareness and sales.”
A less traditional approach to marketing may also be effective. William Grant’s Friedman says her company’s unique approach to Monkey Shoulder has been instrumental in the brand’s success in a challenging category. “The top three things we want our consumers and newcomers to take away is Monkey Shoulder’s premium quality, flavor versatility, and the brand’s personality,” she says, calling the brand a “social, energetic, and premium alternative” in the U.S. whisk(e)y landscape. “By combining top-notch quality with a fresh, contemporary, and playful attitude,” Friedman adds, “Monkey Shoulder is shaking up the category, bringing whisky to a new generation.”