Morrison Bowmore Sales Are Up

[John]

Morrison Bowmore Distillers has achieved a 12% hike in sales of its flagship Islay single malt, despite the global economic downturn.

Japanese parent company Suntory has revealed to The Herald that almost two million bottles were sold in 2009.

This jump was achieved against the backdrop of what Suntory estimates was a flat market for the single malt category last year and amid tougher times for distillers attempting to sell to a recession-struck US market.

Toshihiko Kumakura, executive general manager of Suntory's international liquor division, told The Herald during an interview in Tokyo that 164,000 cases of Bowmore single malt were sold last year.

He said this was up from the 146,000 cases sold in 2008 and hoped sales would hit 200,000 cases a year in the "near future"?. Each care contains 12 bottles.

Kumakura also pointed out the fact that this Islay malt was selling just 21,000 cases in 1990.

Suntory acquired a stake in Morrison Bowmore in 1989. It took 100% ownership in 1994.

Kumakura hailed Suntory's successful efforts to make Morrison Bowmore a profitable business by reducing its reliance on the

volatile bulk whisky market and focusing on building the brands. Suntory's own figures put its Japanese single malt Yamazaki in number nine position in 2008, with this whisky the only non-Scotch brand in the top 10.

The Bowmore single malt achieved a 7% rise in exports to Japan last year, to 12,000 cases.

Kumakura said a boost in sales of Bowmore in the US in January was achieved despite tough times with US distributors de-stocking amid the global downturn.

Morrison Bowmore's portfolio includes Auchentoshan, which Suntory describes as the biggest-selling lowland single malt, the Glen Garioch single malt from Oldmeldrum in Aberdeenshire, and McClellands.

Explaining the sharp rise in Bowmore's sales since 1990, and the profitability which had been established, Kumakura said: "We invested in the brands."?

He said Morrison Bowmore previously did much more bulk, as opposed to bottled, trade: "Bulk business is not stable business."?

Suntory also achieved a rise in sales of its Yamazaki Japanese

single malt whisky last year.

The bulk of Yamazaki sales continue to be in Japan but Suntory aims to boost export volumes.

Keita Minari, global brand manager for Yamazaki, revealed plans to increase exports of this single malt to Europe from 11,392 cases last year to 35,000 cases by 2012 and 60,000 cases by 2015.

Asked if he saw Bowmore and Yamazaki as complementary to each other, or in competition, in export markets, Minari replied: "Japanese whisky is very different from Scotch whisky, especially the Islay whiskies, so I don't think we compete with each other."?

Referring to Suntory's move into Scotch whisky with the start of distillation in the 1920s at Yamazaki, located between the Japanese cities of Kyoto and Osaka, Kumakura said: "We learned from Scotland how to make whisky 80 years ago but now Japanese whisky is considered very unique, I think because of the climate in Japan."?

John

Source: The Herald Scotland