emerging markets for teeling whiskey
TRANSCRIPT
Emerging Markets for Teeling Whiskey
‘The Spirit of Dublin’
Paudie Murphy
Global Trends in Whisk(e)y“Whisk(e)y is projected to be one of the most dynamic segments of the global
alcoholic drinks market over the next few years” (IWSR Forecast 2015-2020)
● Premiumisation: Value and low-priced brands will lose share to the
standard-and-above quality segments as consumers trade up.
● Geographical Indicators
● Sustainable Production
● Mainstreaming of Connoisseurship
● New forces of global demand
The Teelings Brand● Boutique craft whiskey distillery● Full portfolio of Premium and above Irish Whiskeys
○ Blended○ Single Grain○ Single Malt○ Aged
● Innovative approach - daring to do things differently● ‘Spirit of Dublin’ - a brand rich in personality● Strong geographical indicator - Dublin produced● 100% Irish● Award winning
Teeling Whiskeys
● Teeling Small Batch Blended - €38.99
● Teeling Single Grain - €45.95
● Teeling Single Malt - €52.99
● Teeling 15 year Single Malt - ‘The Revival’ - €100 (Limited edition 10,000 bottles)
● Teeling 21 year Single Malt - ‘The Silver’ - €152.99 (Limited edition 5000 bottles)
● Teeling 26 year Single Malt - ‘The Gold’ - €695 (Limited edition 1000 bottles)
● Teeling 30 year Single Malt - ‘The Platinum’ - €2150 (Limited edition 250 bottles)
● Teeling Poitin - €32.99
New horizons Preliminary research indicates the following as emerging markets for whiskey:
South Korea, South Africa, Mexico, Brazil, Thailand
However, market analysis leads me to choose Mexico as a focus
Total Whisk(e)y Market Size 2015
Volume litres Annual Growth
Value Annual Growth
€ Value
South Korea 14.4 M -3.3 % 3.5 T (skw) -1.1% 2.6 B
South Africa 47.9 M +2.6 % 14.9 B (zar) +11.4% 876 M
Mexico 42.9 M +13.7% 35 B (mxn) +19.6% 1.75 B
Brazil 53.1 M +2.5% 8.2 B (brl) +11.6% 2.05 B
Thailand 20 M -8.2% 35.6 (thb) -4.3% 890 M
Total Whisk(e)y Market Size 2019
Volume litres Growth 2015-2019
Value Growth 2015-2019
€ Value
South Korea 12.9 M -15% 3.5 T (skw) -0.4% 2.7 B
South Africa 52 M +8.6% 21.4 B (zar) +44% 1.26 B
Mexico 68.6 M +60% 67.7 B (mxn) +93% 3.38 B
Brazil 59.6 M +12% 12.5 B (brl) +52% 3.1 B
Thailand 17.8 M -11% 37.6 B (thb) +5.5% 942 M
Irish Whiskey Market Size 2015
Volume litres Annual Growth
Value Annual Growth
€ Value
South Korea - - - - -
South Africa 2.4 M +6% 1.3 B (zar) +14% 80 M
Mexico 75 K +8% 92 M (mxn) +12% 4.6 M
Brazil 62 K +0% 10 M (brl) +7.3% 2.6 M
Thailand - - - - -
Irish Whiskey Market Size 2019
Volume litres Growth 2015-2019
Value Growth 2015-2019
€ Value
South Korea - - - - -
South Africa 2.9 M +21% 2.1 B (zar) +53% 122 M
Mexico 99.7 K +33% 139 M (mxn) +51% 6.95 M
Brazil 63 K +2% 13.4 M (brl) +31% 3.35 M
Thailand - - - - -
Single Malt Market Size 2015
Volume litres Annual Growth
Value Annual Growth
€ Value
South Korea 632 K +4% 247 B (skw) +7% 190 M
South Africa 683 K +14% 350 M (zar) +17% 20 M
Mexico 546 K +27% 758 M (mxn) +34% 38 M
Brazil 2.6 K +4% 1.4 M (brl) +8% 7.3 M
Thailand 53.5 K +0% 291 M (thb) +13% 7.3 M
Single Malt Market Size 2019
Volume litres Growth 2015-2019
Value Growth 2015-2019
€ Value
South Korea 734 K +16% 331 B (skw) +34% €255 M
South Africa 951 K +39% 566 M (zar) +62% €33 M
Mexico 1.4 M +172% 2.5 M (mxn) +225% €123 M
Brazil 2.8 K +8% 1.9 M (brl) +36% €475 K
Thailand 55 K +3% 421 M (thb) +45% €10.5 M
Why Mexico?Summary of market analysis:
● Mexico is the fastest growing whiskey market
● Irish Whiskey is an underdeveloped market in Mexico with steady growth
● Single Malt Whisky is the fastest growing spirit market in Mexico
● Premiumisation trend - upgrade consumers to Single Malts
● Benchmark product is Premium
● Premium whiskey is 34% of the market volume ( more than the other
countries)
● Super Premium is 1.9% of the market but growing
● Acquisition of Bushmills by local company José Cuervo
Why Mexico?Demographic indicators:
● Population of 122 million
● 79% of these in urban areas
● Mexico City 21M, Guadalajara 4.6M, Monterrey 4.4M
● Young demographic: Median age is 28, 45% of population under 24
● Approx 20 million in the 25 to 35 age range (target demographic)
● Growing middle class with rising disposable income. Whiskey = Status
● GDP 2.3%
● Expansive macroeconomic investment
● Developing infrastructure
Market Segmentation● Young millennials 18-35 age group● Avid social media user● Middle and Upper class professionals● Desire exclusivity and to demonstrate sophistication● Premium brand consumer● Hipster culture- craves authenticity in brand story ● Seeks craft and artisanal products with known provenance ● Appreciates innovative, disruptive products i.e. Teelings is the new
generation of Irish Whiskeys, doing things differently● Appreciates the start-up nature of the family owned brand● Gourmet food interests / food and whiskey pairings / mixology
Competitor Brandshare in Mexico
Whiskies 2009 2014
Johnnie Walker 33.5% 23.2%
Passport 8.2% 11.8%
Buchanan’s 15.8% 9.9%
Chivas Regal 10.3% 8.7%
William Lawson 6.5% 7.4%
Trend: Traditional market leaders losing brandshare
Teelings Blended - Market positioning● Shift in brandshare from traditional market leaders in blended
whisk(e)y to more niche and premium brands
● Great opportunity for Teelings Flagship Blended Whiskey
● Capitalize on trend for premiumisation to encourage sales of a
more expensive craft blended whiskey.
● Greatest volume of sales expected from this product
● This is a gateway to premium whiskey for young professionals
● Pricepoint of €38.99 similar to Jameson Crested Ten €36.50 or
Johnnie Walker Blacklabel €43.
● However, this is a small batch, niche, “cooler” product
The rise of the single malt
Single Malt Scotch
2009 2010 2011 2014
Macallan 4.4 23.0
Glenfiddich 14.6 19.8
Glenlivet 0.5 9.10
Cardhu 0.7 2.8
Increasing brandshare of Single Malt Scotch in Mexico
Teelings Single Malt - Product Positioning
● Increasing brandshare of single malt whiskeys, indicates a premiumisation
trend of consumers “graduating” to single malt from blended.
● Priced a little higher, but not too much - to entice customers up the product
range
● Opportunity to be an early mover to be the craft, Irish single malt of choice-
still a relatively unique category
● As consumer matures opportunity for more exclusivity by moving up to the
limited edition, aged single malts.
● The single malt at €52.99 compares favourably to competitors e.g. Macallan
Amber €52.00 and Cardhu €53.00 with the advantage of its boutique,
innovative craft pedigree.
Sales channels● Independent premium spirits agent to distribute● Food & Beverage Trade shows e.g. Abastur and Gourmet Show● Target luxury hotel chains ● Duty free ● Off-licence chains● Direct sales to influential cocktail bars
Operations considerations
● Logistics● Warehousing● Import Duty Rate: 16%● Excise duty: 53%
Strategy Implementation● Phase 1:
○ Guadalajara (4.6 M) or Monterrey (4.4 M)○ Gain a foothold in region and develop brand
recognition○ Greater insight into the market ○ Test marketing strategies
● Phase 2:○ Mexico City (21 M)○ Use insights and feedback from phase 1 and
iterate on strategy○ Increase marketing budget
Reaching the target market● Strong Brand Ireland approach under the Bord Bia Irish Food and
Beverages umbrella● Connect with Irish Embassy for events● Build on the Origin Green platform and emphasise Teelings sustainable
credentials● Target Whisk(e)y festivals, clubs, tastings.● Teeling Brand Ambassador to build relationships with trade, consumers
and key influencers e.g. whiskey/food bloggers● Sponsorship of key events e.g. music or arts● Target Mixology events/competitions
Digital marketing● Integrated Social Media Campaigns
● Facebook is primary platform, also Whatsapp and
● Rise in “at home occasions”. Create a Teelings
occasion e.g. #Teelings and Tamales
● Videos on how to make new cocktails - (bigger off-
trade market) Pair with local foods e.g. Mexican
Hot Chocolate, Chipotle Whiskey Sour
● QR codes on bottles
Possible challenges● Currency volatility could derail growth
● Market growth may vary according to region - may
have to use split testing on different regions
● Ecommerce retail still low in Mexico,
predominance of cash over credit cards due to
fears of hacking and unreliable postal system.
Poses challenges for online sales.
Thank you
Paudie Murphy