Thursday 29 September 2016

The 4 Companies Behind 3/4 Of All Scotch Whisky Production

Did you know that only a quarter of Scotch whisky distilleries are owned by Scottish companies? In fact, there are only a few large companies behind most of the whisky that you drink (although an increasing number of independent businesses own small distilleries).

Here are a few that may come as a surprise, listed in order of market share value based on 2015 figures.


DIAGIO
Formed in 1997 from the merger of Guiness and Grand Metropolitan, the company that owns Guinness beer and Smirnoff vodka also controls the most Scotch whisky distilleries in the world. That Diageo is the biggest player in Scotch whisky is not really a secret, especially as it’s also behind one of the world’s best known whisky brands: the Johnnie Walker blends. It’s responsible for more than one-third of the total whisky produced in Scotland. There’s significant quality within the quantity, though. Some of its distilleries include the superb Lagavulin, Mortlach, Talisker, and many many others.


Pernod Ricard
After Diageo,Pernod Ricard of France own the most Scotch distilleries thanks to their purchase of American company Seagram’s distilled beverages division as holdings of that enormous company were being sold off in 2000 – including all the distilleries owned by Chivas Brothers. In fact, between them, Diageo and Pernod Ricard control 55% of the Scotch Whisky market. Pernod Ricard owns quite a few ubiquitous alcohol products such as Jacob’s Creek wine, Absolut vodka, and Havana Club rum. Some of their whiskies include Glenlivet, Aberlour, the Chivas Regal blended whiskies, and the Jamesons Irish whiskey giant as well.


Beam Suntory
Beginning with humble origins in 1899, when Shinjiro Torii began to produce and sell wine in Japan, his company then built the Yamazaki distillery in 1924 and has since grown into one of the world’s largest drinks companies. Renamed as Suntory in 1963, its empire was further expanded when it bought Jim Beam in 2014. It produces a lot of whisk(e)y around the world. Its range of global production includes Japanese (Hakushu,Yamazaki), Canadian (Canadian Club), Ireland (Kilbeggan), and American (Jim Beam, Knob Creek, Maker’s Mark) whiskies. It also produces Scotch, with a portfolio consisting of Islay malts Bowmore and Laphroaig, as well as the distilleries of Ardmore, Glen Garioch, and Auchentoshan. You may have also encountered its blended Scotch brand Teacher’s.


LVMH
It’s true! It doesn’t just do purses, you know. Moet Hennessy Louis Vuitton owns two well-known Scotch distilleries, namely Glenmorangie and Ardbeg, both delicious top-level whiskies that produce only single malt Scotch (in 2014, Glenmorangie discontinued the delicious Bailie Nichol Jarvie blend because it was getting too popular and the firm wanted to use its malt for other products). It would make sense that LVMH would dip into the whisky market given it’s behind most luxury products that you can think of, including all kinds of drink brands, particularly champagne, wine, and cognac.