The whisky market - France (2023)

1.2 The global whisky market

According to Factmr, the global whisky market is estimated to be worth US$** billion in ****, with strong growth of *% a year through to ****.

Evolution of whisky market size World, ****-****, in US$ billion Source: ****

Market growth is driven by a number of factors:

the strong cocktail trend, which is boosting whisky sales, particularly in bars and restaurants the premiumization of whisky, increasingly appreciated as an accessible high-end product innovative new launches by producers and brands, with a marked focus on the origin and quality of ingredients (***) tourism linked to spirits, particularly in Western Europe

The market is dominated by major groups - such as Pernod-Ricard, Diageo and William Grant & Sons - with well-known and appreciated brands.

The main producing countries are Scotland, the United States, Canada, Ireland and Japan.

1.3 The French whisky market

Here, we focus on the mass-market whisky market, which accounts for the vast majority of sales. Figures are given at P* of each year, which corresponds roughly to the end of March .

The French whisky market is fairly mature, with sales stagnating and even declining slightly, but resisting in value terms. We'll look in more detail in the study at the reasons for these developments, with a differentiation by whisky category.

Between P* **** and P* ****, the market increased by *.*% in value but fell by -*.*% in volume, according to Lsa-conso.

Between P* **** and P* ****, the market fell by *% in value and *% in volume. [***]

Between P* **** and P* ****, the impact of the EGALIM law limiting promotions on supermarket sales is being felt, with price inflation boosting the market in value (***)according to Lsa-conso .

Value of Whisky sales (***) France, March **** - March ****, as % of sales Source: ****

nevertheless, as we shall see in *.*, the vast majority of this whisky is imported, with French production remaining a minority.

DistilZine estimates French whisky sales at €** million in ****, with strong growth set to continue.

1.4 Foreign trade in whisky

The Whiksy trade balance will be in deficit by more than *** million euros in ****

Whiskies trade balance France, ****-****, in € million Source: ****

The most significant share of exports is destined for the USA, accounting for over half of all exports. Other European countries such as Germany, Belgium, the Netherlands and Poland are also major importers of French whiskies. China and Singapore are the main Asian markets.

Main customers for French whisky exports France, ****, in Source: ****

great Britain is the dominant supplier of whiskies to France, accounting for almost three-quarters of French whisky imports. The USA is the second largest supplier, closely followed by Ireland and Japan. Belgium, Germany and the Netherlands make relatively smaller contributions. Main countries supplying whiskies to France France, ****, as % of total Source: ****

1.5 The impact of the Covid-19 crisis on the French spirits industry

The impact of the Covid crisis on the French spirits industry is multi-faceted:

loss of orders in cafés, restaurants, hotels (***) and nightclubs loss of export orders loss of orders from certain distributors (***)

Through the Fédération Française des Spiritueux (***) limiting promotions and creating inflation[***]

Insee subclass **.**Z"Production of distilled alcoholic beverages" includes the manufacture of :

distilled alcoholic beverages for consumption: whisky, cognac, gin, liqueurs, etc. various mixtures of distilled spirits and other beverages, and neutral alcohol

Although this class does not include whisky alone, it does give us a good idea of the impact of the crisis on the spirits industry as a whole. The graph shows two different periods:

The negative impact is most marked between March and May, the period of the first, stricter confinement After June, activity returns to more or less its **** level, and in some cases is even higher.

Chart interpretation :

in July ****, distilled alcoholic beverage production was **.*% higher than in **** in April ****, it was around **% lower than in ****, but the rebound in the second half of **** is significant: in September ****, for example, production was **.*% higher than in ****

Comparison of distilled alcoholic beverage production (***) France, ****-****, index base *** **** Source: ****

2.1 Whisky, France's favorite spirit

The graph illustrates spirits purchasing preferences in France for the year ****, revealing a strong appetite for whisky, which clearly stands out. With **% of respondents having purchased whisky in the last ** months, this beverage is in second place, just behind rum, which leads by a narrow **%. This figure underlines whisky's special place in the hearts of French consumers, underscoring not only its popularity, but also its importance in the French spirits market. The chart depicts a notable gap between these two chart-toppers and other categories such as aniseed and vodka, confirming whisky as a pillar of French spirits-tasting culture.

Spirits purchase rate over the last ** months France, ****, in Source: ****

Whisky has the most significant market share among spirits in France, accounting for **% of sales in French supermarkets.

French spirits supermarket sales by value France, ****, in Source: ****

Slight decline in consumption:

In ****, whisky accounted for **% of spirits consumption with ***.* million liters, so this declined between **** and ****[***]

Consumption has in fact been falling slightly for several years, with the market holding up (***). Indeed, the French are tending to consume less, but are turning to more expensive whiskies.

Among the reasons for this drop in consumption are :

higher consumption of beer and other spirits such ...

2.2 Profile of whisky drinkers

According to theIpsos study, the typical profile of a whisky consumer is an older man with a fairly high income .

The average age of whisky drinkers is **.*, with more than half over **.

What's more, over */* of consumers are men , as the following graph shows.

Breakdown of whisky consumers by gender France, ****, in Source: ****

Franceagrimer 's **** study on alcohol consumption in France highlights two other trends concerning the typical profile of the French whisky consumer:

the average purchase price is higher among the over-**s than among younger age groups more whisky is consumed in Western France than in the rest of the country

2.3 How and where whisky is consumed

Consumption rituals: French Whisky consumers prefer to drink it on its own (***), while only **% usually drink it in cocktails and **% in flavors.

In fact, **% of consumers believe that Whisky is a drink to be enjoyed in small quantities .

How do the French usually consume Whisky? France, ****, in Source: ****

What's more, **% consider it an ideal aperitif drink.

Whisky is therefore rarely consumed in cocktail form, even though this type of consumption is on the rise. There are some whisky-based cocktails (***), but most are based on rum, gin or vodka.

Whisky can also be enjoyed with meals, as the Fédération Française des Spiritueux points out: with dark chocolate, cheese, smoked fish or seafood, for example.

**% of French people consume spirits at home at least once a year, while only **% do so when going out.

Spirits consumption locations in France France, ****, in Source: ****

2.4 Whisky buying criteria

What information is important to whisky consumers?

Quality dominates the other criteria, as the following graph shows. Brand is much less important than the other criteria.

When you ask about Whisky, what information are you looking for? France, ****, in Source: ****

The majority of whisky consumers say they know little about this spirit (***), even though **% say they are knowledgeable about whisky and **% say they are somewhat knowledgeable.

However, the degree of knowledge has an influence on purchasing criteria. The table below shows the * most important criteria for "low connoisseurs" compared to "connoisseurs ".

In addition, **% of whisky buyers buy whisky as a gift: Father's Day and the end-of-year festivities are important buying occasions according to Lsa-conso, particularly for premium whisky categories.

2.5 The whiskies most consumed by the French (excluding cafés - restaurants - hotels)

In ****, blends less than ** years old will dominate the market with **% of sales by value, followed by bourbons and malts.

Breakdown of whisky sales by type France, ****, in Source: ****

The whisky market in **** showed robust growth, revealing positive trends in various segments. According to Nielsen data, overall whisky sales rose by *.*%, testifying to stable expansion in both value and volume, with *.*% growth in the latter. Blends under ** years" saw a modest *.*% increase in revenues, suggesting a continuing appreciation for these more accessible spirits. Single malts", meanwhile, recorded an impressive **.*% rise in sales, indicating a growing preference for whiskies with character and superior quality. American whiskies also performed remarkably well, with a **.*% increase in sales, underlining a notable craze for the distinct taste profiles offered by these spirits. These figures illustrate a diversification of consumer tastes and an inclination towards premium whiskies, reflecting a dynamic and evolving market.

2.6 France's favourite whisky brands

The graph below is based on OpinionWay's survey of French consumers' favorite brands in February ****. These are respondents' answers to the question "Do you like this or that brand of whisky?" for each brand, with the percentage corresponding to the proportion of respondents who answered "yes".

Jack Daniel's is the favorite whisky brand of the French, with **.*% of respondents saying they liked it. William Peel is the panel's least favorite whisky brand, with only **.*% of respondents saying they liked it.

France's favorite whisky brands France, March ****, in Source: ****

The graph below compares the level of appreciation of the French's favorite whisky brands by gender. There is a very wide gap between men's and women's ratings.

Comparison of the level of appreciation of the French's favorite whisky brands by gender France, March ****, in Source: ****

The graph below compares the appreciation of * whisky brands by age category. These * brands have the specificity of having particularly significant differences in their appreciation rates according to the age of the respondents. For each of the brands below, the appreciation rate is minimal for the youngest respondents. It is highest for the **-** age group for Clan Campbell and Label *, and for the over-** age group for ...

3.1 The whisky industry value chain

Simplified diagram of the whisky-making process

Raw materials all whiskies use cereals as a basic ingredient. Barley is the most commonly used, but corn, oats, rye, wheat or rice can also be used, depending on the type of whisky (***)

Malting malting: a process during which the starch in the grains is released and converted into glucose, and enzymes are naturally produced. Malted grains are often then ground.

Brewing and fermentation : a "wort" is obtained, which is fermented with the addition of yeast to produce alcohol.

Distillation : the liquid resulting from fermentation is distilled a *st time to produce wash still, then a second time to produce spirit still. The distilled liquid is then cut to retain only the part that will be put into casks.

Ageing : generally in oak casks for at least * years, ageing gives the whisky its aromas. As whisky maturation is important, maturation sometimes prolongs the ageing of a first cask of whisky, adding further complexity to its flavours and aromas.

Bottling afterblending whisky for blends, bottling takes place before distribution in bottles

Source: ****

3.2 The boom in French whisky over the past decade

The French whisky industry: clear potential[***]

The French whisky industry has a number of advantages to help it progress:

it masters all stages of production and already possesses excellent know-how in distillation, ageing and blending. it is also the world's largest producer of barley malt, and French whiskies are more often than not single malts. it has access to high-quality casks (***) finally, France is considered the world's highest per capita whisky consumer

Booming sales since ****:

According to the Fédération du Whisky de France, *.*million bottles of French whisky will be sold in ****, i.e. * times more than in **** , as shown in the graph below. The number of bottles of French whisky sold has risen sharply, with a CAGR of around **% between **** and **** .

Trend in the number of bottles of French whisky sold in France France, **** - ****, in thousands of bottles Source: ****

French players :

The Fédération du Whisky de France forecasts *** distilleries in operation by ****, a number that has been rising steadily for several years.

**% of sales volumes are currently generated by the * main French players, while there are almost *** brands on the market, according to Les Echos:

Distillerie Warenghem: a distillery located in Brittany is a ...

3.3 Distribution analysis

Traditional generalist distribution channels (***) largely dominate sales, in terms of both value and volume.

Some specialized distributors (***) also sell whisky, and are particularly popular with connoisseurs, such as :

cellars and networks of wine merchants such as Nicolas pure-players such as La Maison du Whisky, which offers top-of-the-range whiskies from France and around the world Whiskies du Monde: a selective distributor that imports top-of-the-range spirits from all over the world. The company has also launched a French Whisky in **** called Evadé. With over ** brands in its portfolio and more than * million bottles sold, the company distributes to supermarkets, CHR, cellars and certain duty-free outlets.

According to the FFS, the CHR (***) sector accounted for **% of spirits sales by volume in ****. We can assume that the same applies to whiskies.

Market share in traditional distribution channels:

William Peel is the whisky brand with the highest market share, reaching around **.*%.

Market share by volume in the under-twelve-year-old blends segment in supermarkets France, ****, in Source: ****

Although supermarkets and hypermarkets remain the main choice for buying spirits for **% of the French, **% of those surveyed favor specialized channels, whether wine merchants (***).

France, ****, in Source: ****

4.1 Types of whisky

Whiskies vary according to :

the ingredients used production processes territorial origins

There is a wide variety of different whiskies, including :

Single malt: produced by a single distillery, this is the flagship product of Scottish distilleries. It is one of the most expensive whiskies. Aberlour and Glenfiddich are major brands in this segment.

Single grain: Whisky made from one or more cereals (***).

Blended: blended refers to a blend of various malt whiskies and grain whiskies; blended malt refers to a blend of various malts; blended grain refers to a blend of various grains. This is an inexpensive whisky, not least because it costs less to produce.

In Scotland, there are * designations according to the Scotch Whisky Association:

Single Malt Scotch Whisky Blended Malt Scotch Whisky Single Grain Scotch Whisky Blended Grain Scotch Whisky Blended Scotch Whisky

Blended Scotch Whisky must be made exclusively from peat-dried malted barley, aged for * years in Scottish casks, and have an alcohol content of over **%.

Single Pot Still: Traditionally Irish, it is made from malted and unmalted barley, distilled in pot stills

Bourbon: mainly produced in Kentucky, it must contain at least **% corn and be aged for at least * years in oak casks. If it's not a ...

4.2 Price analysis

An upward trend in prices over the last ten years:

According toInsee, the average retail price of a **cl whisky is €**.* in **** (***). Three periods can be observed on the graph:

a sharp rise in prices between **** and **** stagnation, and even a slight fall between **** and **** a sharp rise between **** and **** (***)

Retail price trend for a ** cl whisky Metropolitan France, ****-****, in euros Source: ****

However, the price range can vary widely:as a general rule, a *L whisky can cost :

entry-level: around €** - €** mid-range: between €** and €** top-of-the-range: over €**

For example, French whisky is rather high-end, with a median price of €** a bottle, but prices ranging from €** to €***, according to the director of the French Whisky Federation. [***]

Factors influencing price include :

type of whisky (***) origin (***) age brand prestige exceptional vintages, such as "single cask" whiskies made from a single cask

Some great vintages can fetch very high prices, becoming veritable collector's items.

Consumer price index - Base **** - All households - France: Alcoholic beverages France, ****-**** Source: ****

4.3 A heavy tax burden

Alcoholic beverages are subject to special tax regulations. Not only do they have to pay VAT, but since ****, consumption taxes and a social security contribution have been required. These change every year:The duty rates for spirits and alcoholic beverages shown in the tables below are increased by *.*% (***) for the year ****, they will amount to €****.**/HAP for consumption taxes and €***/HAP for social security contributions. [***]

In ****, a bottle of spirits (***) to social security. The remaining €*.* corresponds to the selling price excluding duties, taxes and VAT. [***]

Breakdown of taxes on a spirit sold for €** France, ****, in Source: ****

4.4 Supply trends

Innovative launches as growth drivers:

Some strategies aim to attract younger consumers (***) by playing on "rounder" or "fruitier" tastes with, for example:

Jack Daniel (***). [***] Ballantine's Barrel Smooth (***), with a caramelized taste, launched in ****.

What's more, even if other spirits are more widely used for cocktails (***), the cocktail trend is not escaping whisky.

A trend towards premiumization:

As mentioned in Part *, consumers are tending to buy more expensive, premium whiskies, particularly blends over ** years old and single malts. Over the past ** years or so, "superpremium" whiskies have grown by an average of *% a year in volume . In these categories, Father's Day and the festive season account for half of sales. [***]

The blends under ** years of age category is less attractive, as competition is already strong and consumers are less attracted, especially as the EGALIM law limits promotions in this segment.

5.1 Regulations

since spirits are alcohols of at least **º and most products have an alcohol content well above the average, spirit drinks are highly regulated.

Production

Bottles of spirits must be strictly labeled with the following information: ingredients, alcohol content, volume, and, for example, a logo depicting a crossed-out pregnant woman. Regulation of certain products to obtain the AOC (***) label. A total of ** products bear the AOC acronym in France. [***]

Distribution

Retailers need a Licence IV in order to sell spirits in a CHR (***). However, these licenses are no longer being created, and a transfer of ownership is required to benefit from them. Anyone operating a drinks establishment must undergo training to obtain an "operating permit". There are often restrictions on the hours during which liquor outlets can be open or during which alcoholic beverages can be sold. For example, municipal by-laws may prevent the sale of alcohol at different times.

Promotion

Visit Loi Evin also severely limits where and how alcohol can be advertised. For example, it is forbidden to advertise spirits on television, cinema or radio during peak hours. It is also forbidden to target a young audience. Spirits advertising is often limited to billboards or magazines. The Egalim Lawto be ...

6.1 Segmentation

• William Grant and Sons
• Bacardi
• La Martiniquaise Bardinet
• William Peel (Groupe Marie Brizard)
• Brown Forman
• Pernod Ricard Groupe
• Marie Brizard Wine And Spirit
• Rémy Cointreau
• Maison Benjamin Kuentz
• Beam Suntory
• Bellevoye
• Armorik Distillerie Warenghem
• Distillerie des Menhirs
• Maison du Whisky
• Celtic Whisky Distillerie - Glann ar Mor
• Distillerie Domaine des Hautes Glaces