IWS banking on boom in single-malt whisky market

IWS managing director ST Gan said yesterday that the market last year had grown by as much as 37 per cent, but this year it is forecast to grow by just 20 per cent because the other five major players are paying more attention to blended whiskey. The blended-whisky market is significantly larger, selling 3 million cases compared to only 12,000 cases of single malt.

However, Gan said he was confident that the single-malt market would become much larger, selling 60,000 cases annually within the next five years.

"Over the last five years, more consumers worldwide are drinking single-malt whisky and Thais are also developing a taste for it, even though its still quite new here," Gan said.

People like drinking single-malt whisky because each manufacturer distils the alcohol in a different way, which means each whisky tastes and smells different.

Meanwhile, on the business side, single malt offers a much higher margin at 40 per cent compared to blended whisky at 10 per cent. Moreover, the product is not sensitive to the economy because single-malt whisky is targeted at wealthier consumers, while blended whisky targets the middle part of the market. Gan said this was why blended whisky had experienced flat growth over the past two years.

Yesterday, IWS launched four single-malt whiskies from the Japanese distiller Suntory: Yamazaki, aged 10 and 12 years, and Hakushu, aged 10 and 12 years. Prices range between Bt1,800 and Bt2,200 per bottle, and will be sold in bars, hotels and premium supermarkets.

The marketing budget for the new drinks has been set at Bt10 million, half of which will be paid for by Suntory.

IWS is also arranging seminars to raise awareness of its products among wholesalers, hotels and bars. It plans to link the marketing to the sport of golf and will also start advertising in top lifestyle magazines.

The company expects these marketing efforts to help it sell 2,000 cases valued at Bt20 million by the end of the year.

IWS expects its overall sales to rise by 25 per cent to Bt400 million this year, Gan said.