text | WBO Xiaojing
Since Chivas and Black Brand cultivated the first batch of whiskey enthusiasts in China, the vintage route and concept of whiskey have been deeply rooted in people's hearts. Starting in 2012, 2015 and 2018 are mid-to-high-end whiskeys, which are precious in more than 20 years. Pricing in years has become the basic principle of the whiskey market. Of course, there will be differences between brands, and the basic frame is set within a price circle.
With the rise of emerging consumer groups and diversification of channels, single malt whiskey from Scotland , as well as whiskey from emerging wine producing countries such as the United States and Japan, has gradually become the new favorites in the market, and newcomers are trying to break market barriers and traditional price circles.
1
Most traditional wine merchants respect the rules of year pricing
Diageo is the world's largest wine group. In the whiskey market, it is also one of the top players. At present, Diageo respects the philosophy of year pricing. The black brands under Diageo, as well as Carl Lira, Legavelin, Sugden, Ouben, and Kraggmore in the single malt field, basically distinguishes the price range according to year. Of course, will also be interspersed with some concepts such as bucket strength as the basis for to increase the price.
Diageo also has an exception, that is, the flexible "Tescar". It seems that Diageo is also trying. Tescar has DE versions, Storm Series, 57 degrees north latitude, Isle of Skye, and Porter barrels priced according to product concepts. The pricing of these products is completely disrespectful to the year. Of course, Tesca also has a traditional year pricing method.
WBO found that for Dashang, they seem to be more willing to promote Tescar's non-year series. "The profit margins of products such as non-year pricing methods are usually higher, so as a distributor, they are naturally more willing to recommend them." said a foreign wine dealer in Shanghai.
Another top player in the whiskey field is Pergola. Pergola seems to be more focused in the whiskey field. Whether it is Chivas, Bailingtan, or its single malt whiskey Granwit and Albert, what they respect more is the vintage route and year pricing method. Of course, for the different divisions of products such as single barrel, double barrel and strong barrel (original barrel), Pernod Riga will also complete some price adjustments based on year pricing.
Bacard Group is also a giant crocodile in the whiskey field. Such as single malt whiskey Omo, Eberdy, Royal Blakela, Defren, Claygarh, and the blended whiskey emperor are all affiliated with the Bacardi Group. Bacardi also worships the vintage route. Almost every whiskey under its whiskey uses the vintage as the main price line , which is traditional and decent.
And most of the top brands in the single malt field such as McAllen, Glenfield, Morgan Stanley, Genting, and Baifu are priced based on the year. Whether it is low-end or high-end, the year in oak barrel is its pricing standard . Based on the year, the price will be increased based on the type of oak barrel and whether the barrel is strong.
What McAllen is more clever is that it is also a 12-year-old wine, and the price jumps of different barrels have caused relatively large prices. McAllen plays the pricing philosophy of "oak barrel + year" more exquisitely and is considered a price planner. Of course, McAllen's top wine style is also high and birds fly, and it has jumped out of the year pricing method early.
Although Morgan Stanley is also a follower of the annual pricing rules, the entry-level price of Morgan Stanley whiskey is relatively high and has a larger space. It feels like relying on popularity to "competition at the top". Morgan Stanley's 12 years' price is equivalent to the 15-year price of many other brands. Therefore, although Morgan Stanley also priced according to year, it has broken out of this rule circle to a certain extent. has a higher profit margin, so I don’t know how Chinese consumers judge it.
Genting whiskey is more intense. The price of wine in about 10 years is equivalent to the price of most brands in 18 years. It seems that the advantage of occupying a niche production area Campbell Town is very significant. There are not many brands in the production area to compare prices horizontally, so the price is decided by yourself.It can be said that Genting not only complies with the annual pricing rules, but also takes up all the cheaper in small-producing areas.
Of course, we are talking about the pricing method of main line products here. There are some brands above, and there may be some niche collection versions, customized versions, and airport duty-free versions. They may not be priced by year, but they are by no means the main line products under it.
2
New forces in winemaking want to break the shackles of year pricing methods. Some people call themselves "rebels"
LVMH Group (LVMH) does not care about the year pricing philosophy! Companies that are used to selling Louis Vuitton and are unwilling to be bound by the so-called years. They seem to be building a benchmark for non-year pricing.
Since being acquired by LVMH in 2005, Granger has begun to design and shape a new product concept. Don't forget that in 1997, Granger acquired the legendary single malt whiskey Abbe from Ireland, and also began Abbe's rebirth and restored his heavy peat taste.
So, Granger and Abbe are both affiliated with LVMH brands, and their gameplay is somewhat similar.
The king of peat Abei has completely broken the annual pricing rule. Of course, Abei also has products based on year pricing, but it is no longer the main product. When it comes to Abe, you usually think of main products such as Vortex, Uganda, O'Nei, and Black Bay. Even if is a 10-year product, Abe is also called Yabo, which is describing the concept of year.
Granger has set up a classic benchmark product of about 1,000 yuan - Granger Shiyin. When it comes to Granger's flagship products, everyone will think of it. Is this breaking the year pricing rules?
In the mid-to-low-end field, Granger has also created classic products such as Classic Highlands and Sauternes barrels, and does not respect the philosophy of year pricing. Of course, Granger has not completely deviated from the year route. It still has a set of products that rely on the year to price, but it does not mainly recommend .
Another product worth mentioning is Buchladdich Distillery, which was established in 1881, ushered in new development in 2001. Mark Rainier, a winemaker who claims to be a "rebel", completed the acquisition of Buchradi and began the rebirth of Buchradi winery, which became a worshiper of the non-year route.
Buchradi is a master of product planning. It completely breaks all the traditional rules of Scottish single malt whiskey from bottle shape, design, name, product concept and other aspects. The classic opaque blue bottle is called "Scottish Classic Barley". Obviously, the barley it uses may not come from Islei, but this entry-level product is very popular; while the bottle of "Islei Barley" is in a transparent style; in addition, the Buchradi Star Chart and the Peat Monster series have added the concept of numbers, using numbers to represent different oak barrels and styles, such as Octomore 7.1, which is known as the strongest Peat Monster. This is a bit like a very popular wine in the Chinese market - Penfolds Australia. uses numbers to identify the level, making it easy for consumers to accept, and manufacturers can also easily break out of the so-called pricing circle of year and production areas .
Moreover, whiskey that focuses on peat style also has a characteristic, and there is no need to emphasize the year too much. Sometimes, older vintage whiskey is a natural enemy of peat style.
The new Japanese army of whiskey have also been perfect. The "Introduction Three Musketeers" (corresponding to Scotch whiskey can be said to be mid-to-high) and Fengchen, Master Selection, and Red Wine Barrel are also the three most popular products of whiskey, and there is no element of the year involved. The pricing of more than 3,000 yuan in 2017 has become an investment-grade product, let alone 21 years. Obviously, the three musketeers who ring do not play according to the price rules set in Scotland.
So we can analyze it like this: On the surface, whiskey follows the vintage pricing rules, but its vintage models have been invested and productized, and the volume of wines is not the concept of vintage. If you think about it carefully, isn’t Yamazaki whiskey the same? It's a long time to try.This contains the wisdom of the Japanese. On the one hand, it adheres to the spirit of craftsmanship, and on the other hand, it is also a marketing master in product planning and pricing.
Akashi Whiskey uses red labels, blue labels, black labels and other color words to divide products and grades. Single malt is directly positioned as a product, without the year marked, and the retail price is marked in the range of 700 to 800 yuan.
can be seen, and many Japanese Viagra are taking this non-year route. Of course, they will also have vintage series products to seize the high-end and establish a brand image, but the production and sales volume are not large. The Taiwanese in Baodao have thoroughly learned this trick. The Karmalan doesn’t play with the year, and it directly presents the product concepts that Chinese people are more accepted by them, from rare selections, winery collections, gold car classics to top conductors, classic solos, etc., which are simple, straightforward and rough, showing the charm of Chinese vocabulary. Of course, depending on the type of and whether the barrel is strong, the Karmalan will also have some price difference . This kind of gameplay is very respected, and the Golden Car Karmalan has won many important whiskey competitions in the international world.
A young Irey Island whiskey distillery also does not follow the ordinary path, that is, Qihoumen, which was established in 2005. Unexpectedly, it has been highly praised by the world this year recently. The most important products of Qihoumen are Maggie Bay, Senna stall , and Gem Lake. They are not divided by year at all, just play with buckets and place name concept . It does not have so many vintage wines in old age.
Of course, companies and brands that adhere to non-year routes also have several different schools, and we will have the opportunity to expand on it in the future.
But the judges and consumers seem to care and give it a high evaluation. The price of the entry-level products of the Qhoumen in Qi also reaches the price level of the intermediate products of other compatriots, so the pricing philosophy of the Qhoumen in Qi must have made other wineries on Ailei Island exclaim incredible!
It seems that the new forces in the whiskey world winemaking do not care about the feelings of the "orthodox brothers". What they pursue is to make consumers forget the so-called vintage! We pursue different feelings.
3
The dispute between orthodox and "rebels"?
Why do some people stick to the rule of year pricing so much? But some others want to be "rebels"? This question is very interesting, let's try to analyze it. There is no need to mention blending whiskey here, because behind the blending whiskey is super big players, they are the maker and followers of the rules, and the market is relatively concentrated.
Let’s take a look at the core malt brands such as Grandfield, McAllen, Glenwitt, Sugden, Baifu, and Plateau Knights, etc. They are the maker and perseverance of the rules of the year. Of course, they will occasionally develop some new products to try small, but the main products will generally remain graded and priced according to year.
These brands have one characteristic: their vintage wine inventory is abundant, and their production capacity and sales are on a larger benchmark line. They are distribution channels around the world. They are dealers in the single malt whiskey world and they have the right to price vintage wines.
These brands are basically comprehensively arranged from the low-end to the ultra-high-end, with sufficient vintage wine inventory, brewing and distribution capabilities, and pursue sales at the low-end, while mid-to-high-end requires profits. They will neither blindly raise prices to give up the low-end market, but they will deliberately pursue high prices in the high-end wine market, hoping to capture the market in one go. You can take a look, including McAllen, who is known as the whiskey industry Rolls-Royce , whose products are priced in 12 years of three barrels of brewed products are also very approachable.
Therefore, these core products are aimed at entry-level products in about 12 years, and most of them are retail prices in the range of more than 200-300 yuan, which has the largest sales volume in this range. Therefore, if the rules of the big guys are abide by the rules of the game, for some later niche wine companies, there will be a lot of pressure on costs and there will be no hope.
of course, there will also be products like Morgan Stanley and Genting, which have increased the price of its entry-level vintage wines by several levels, breaking out of the vintage price circle formulated by core large items, but it is a minority after all. These companies have some innate advantages and high operating capabilities.
Therefore, the "rebels" who do not have much historical precipitation must stand up and resist. Only by dominating the concept of "non-year + product theme" can we break out of the price circle set by our big brothers and complete the "wrong-level competition". Most brands that advocate non-year routes also raise prices higher. They directly increase the price of products through some product concepts .
For consumers, as long as your product concept is reasonable and your reputation is excellent, and there are not many people who will be confused about the year within the price range of less than 1,000 yuan.
For dealers, non-year concept whiskeys generally have higher profits than vintage whiskeys, and there is no worry about consumers (for example, consumer questions: The Rolls-Royce "McCarran" in the whiskey industry only costs 300 yuan in 2012. Why is your brand so expensive in 2012? How to answer).
For emerging whiskey companies that really want to stand out and build a brand, non-year + theme whiskey plays have a better chance of . Because the big guys have completed the positioning of vintage wine rules, the price circle is pressed there, the old wine inventory is placed there, and the brand power and channel power are placed there. If competition at the same level is definitely a dead end.
Granger's print is a good case. It has grown into a high-end large single product, and it has occupied a price range of about 1,000 yuan with non-vintage wine themes. Manufacturers and dealers are also happy.
So, it is not so much a dispute between the pricing of vintage wine and the pricing of non-vintage wine, but rather a dispute between latecomers and preemptives, a dispute between the previous wave and the next wave, and a struggle against the mind occupation of consumers. There is no right or wrong, only the best choice based on your own abilities. WBO looks forward to the future of the whiskey world becoming more and more exciting.
Author profile
Xiao Jing
Author Xiao Jing is the co-founder of "WBO Wine Business Observation". Occasionally, I feel that whiskey is more masculine than wine. The world is both masculine and rich, so I passed the SMWA whiskey international certification and bought a lot of whiskey for real money. After half drunk and half awake, I feel that I have a little bit of confidence to talk nonsense in the whiskey world.
Looking forward to more friends who can give criticism and corrections, discuss the topics in the whiskey business field together. While we live our own lives well, we will work together to protect this industry.
