"We also expect another 3 per cent drop in the local Scotch whisky market next year," said Cyril Legrand, director of marketing and development for Pernod Ricard Thailand.

"The price of oil is not going down. Political conditions will take time to stabilise. The international context is still tough," he said.

Pernod Ricard Thailand, local distributor of Chivas Regal and 100 Pipers, plans to spend Bt1 billion in its fiscal year ended June 30, 2007 to market its 100 Pipers brand alone. That's up from Bt700 million in the company's prior fiscal year.

The expected 5-per-cent decline this year is the result of a downturn in the local economy, political uncertainty, and a change in alcohol taxation, said Legrand.

Sales of five-year standard and 12-year premium whiskies have already declined in the local 5.5-million-case-a-year Scotch whisky market. Only the eight-year-old segment, which accounts for less than 300,000 cases, had witnessed growth due to the launch of 100 Pipers Blended Malt into the segment.

"The three-million-case, five-year standard Scotch whisky segment, which represents more than half of the market, is expected to decline 3-5 per cent this year," Legrand said.

The 100 Pipers Blended Malt launched last December, competes with Johnnie Walker Red Label, distributed locally by Riche Monde (Bangkok). The new whisky has already taken 20 per cent of the eight-year-old market and the company is shooting for 35 per cent next year. Chivas Regal is the other major brand in the segment.

"We expect to sell 50,000 cases of 100 Pipers Blended Malt this year and to increase that by threefold to 150,000 cases next year," Legrand said. That target fits with the company's strategy to consolidate its leadership in the standard Scotch segment and generate strong growth in the premium segment.

Chivas Regal enjoyed growth of 12 per cent in the year ended June 30 from the same period the year prior, while boosting its share to 31 per cent.

Pernod Ricard's five-year-old regular 100 Pipers dominates the standard whisky segment with a share of almost 80 per cent, leaving the rest to other brands including Spey Royal and Benmore.

According to Nielsen Media Research, alcohol firms last year spent more than Bt2.6 billion on advertising, of which 65.3 per cent was poured into television commercials, 3.3 per cent into radio spots, 14.6 per cent into newspaper ads, 2.6 per cent into magazine ads, 9.6 per cent into cinema ads, 3.9 per cent into outdoor ads, 0.4 per cent into ads on mass-transit systems, and 0.3 per cent into retail displays.

Pernod Ricard has shifted its 100 Piper marketing budget to below-the-line activities such as promotional events. Legrand said such promotions better conveyed the value of the brand to consumers. It has become more and more difficult to explain the brand's value through the media, he said.

Yesterday was the start of 100 Pipers' nationwide lucky draw campaign. The grand prize is a Mercedes-Benz SLK 200 Kompressor worth more than Bt4 million. The lucky draw also offer more than 400 prizes including Tag Heuer watches, Apple iPods and Samsung mobile phones, which raise the overall value of the campaign to nearly Bt9 million. The contest runs until September 30.

Kwanchai Rungfapaisarn

The Nation