Global sales of Chivas Regal whisky, produced at Strathisla Distillery in Keith, skyrocketed by 25% during the year to June.
The year-on-year increase in net value for one of Chivas Brothers’ flagship brands was bettered only by Royal Salute, whose spiritual home is also at Strathisla. Global sales of Royal Salute surged by 32%.
Volume sales of Chivas Regal and Royal Salute grew by 10% and 17% respectively.
Increased demand for these two brands contributed to Chivas Bros’ best financial performance in a decade.
And 9% growth for The Glenlivet
Chivas Regal was the leading contributor to growth at parent company Pernod Ricard.
Glasgow-based Chivas Bros said The Glenlivet, its iconic single malt made at Ballindalloch, on Speyside, “continues its upward trajectory”, with 9% growth in net sales globally.
The Glenlivet beat all its rivals to secure the crown for the world’s best-selling single malt by volume, despite a 3% fall in sales on that measure, the company revealed.
Sales of Ballantine’s, another of Chivas Bros’ key brands, grew 13% by value but volumes declined by 4%. Speciality brand Aberlour grew net sales by 11%.
Total net sales grew by 17% to a 10-year high, reflecting strong global demand for Scotch and reinforcing the company’s “long-term premiumisation strategy”.
Meanwhile, Chivas Bros pledged to invest more than £60 million in heat recovery technologies and the installation of electric boilers across “viable” distilleries as part of an “ambitious” target of carbon neutral distillation by 2026. It will also invest in “strategic inventory management” to meet demand for its whiskies around the world.
Chairman and chief executive Jean-Etienne Gourgues said: “Our highest growth of the last decade reinforces our position to shape the future of sustainable Scotch, while continuing to meet demand. We have fast-tracked a number of sustainability initiatives to meet our own ambitious targets and remain committed to supporting the industry in ushering in this new era.”
Asia the top market for Chivas Bros
Asia was the No1 contributor of growth overall, with net sales there up 21%.
Chivas Bros said its key North American market had seen “stellar growth in a highly saturated market”, with sales up 8%.
An “impressive performance in markets such as India and Japan” drove growth for Chivas Regal, the company said.
Royal Salute did particularly well in the US and core Asian markets including South Korea, India and Taiwan, with the brand also helped by exclusive luxury releases such as itsRoyal Salute Coronation of King Charles III Edition.
Meanwhile, annual results from Pernod – whose portfolio brands also include Jameson Irish whiskey, Absolut vodka, Beefeater gin, Havana Club rum, Kahlua coffee liqueur, Malibu coconut-flavour rum, Jacob’s Creek wine and champagne brands Mumm and Perrier-Jouet, among others – showed organic net sales growth of 10% to £10.37 billion.
Net profits for the Paris-based group soared 12% to £1.95bn.
According to trade body The Scotch Whisky Association (SWA), total exports of Scotland’s national drink then fell by 3.6% in the first half of 2023, to £2.57bn, while volumes were down by 20% year-on-year.
SWA said its figures reflected “the global trend of consumers premiumising in the spirits category”.