Distell joins forces with Scotch distiller

Says Distell MD, Jan Scannell: “The basis of our alliance with Burn Stewart, widely acknowledged for the quality of its whiskies and its success in building new markets, represents a very important development for us. We believe their trademarks will significantly enhance our portfolio.”

Burn Stewart, whose brands include Scottish Leader already represented in South Africa by Distell, is owned by CL WorldBrands, the global drinks group of Trinidadian-based CL Financial with distribution networks in Europe, the US and the Far East.

In addition to Scottish Leader, they are the Bunnahabhain Islay Single Malt, and Black Bottle Blended Scotch Whisky, a blend of seven Islay malts, with a history of over 128 years. All highly respected trademarks, the Burn Stewart brands regularly win accolades on industry showcases such as the International Wine & Spirit Competition and the International Spirits Challenge.

Powerful support base

Distell has been representing Scottish Leader since 1999. The blended Scotch brand, which occupies fourth position in its category in Scotland, has evolved a powerful support base through its association with football, including the Rangers, Celtic and the Heart of Midlothian clubs. It is one of the top 10 brands in Taiwan and a leader in the Baltic States. In South Africa it has fast gained prominence in its category and in Namibia is the top-selling Scotch.

Says Scannell, “We have created a sound infrastructure from which to profitably market and distribute our brands in these countries, strengthened by a growing conversancy with local trading environments, each with their own specific set of demands. Our continued investment in these markets is a mark of confidence in their enormous potential.”

The news of Distell’s joint venture comes on the back of a recent prediction by UK researchers International Wine & Spirits Record that the value of the global spirits market will rise from US$170 billion in 2005 to $180 billion by 2010, with Scotch whisky identified as a key growth category.

Record 2006 growth

Earlier this month (April), the Scotch Whisky Association reported record growth for 2006, with sales volumes worldwide up 4% on 2005.

Says Scannell, “Rising disposable income in South Africa is not a localised phenomenon. It also holds true for other countries on the continent, fuelled by multi-national corporate investment and is borne out by the steady expansion of our brands in these markets.”

Commenting on the deal, Burn Stewart MD, Fraser Thornton, adds, “The opportunity to extend our working relationship with Distell to jointly develop our key brands in the region is extremely significant for Burn Stewart. The combination of Distell’s distribution capability and regional marketing knowledge combined with Burn Stewart’s brand and category experience will allow both organisations to enjoy a successful future in an important and growing region for Scotch whisky. This agreement further highlights our long term commitment to brand building.”

Growing trend

Caroline Snyman, who heads Distell’s spirits division, believes the growing trend towards premiumisation and the accessibility of top international brands bodes well for the three Burn Stewart brands on the continent. “Greater global travel by Africans and the exposure to brands of distinction, coupled with a rising awareness of and taste for whiskies of Scotland, is creating a climate for the ready acceptance of these new trademarks. Affluent consumers are continually looking to extend their repertoires with finely crafted products, particularly those with a long and award-winning tradition.”

She said this had been particularly evident in developing markets elsewhere. “Last year, exports of Scotch whiskies grew 24% to Central and South America. We regard this is a very encouraging trend.”