Scotch whiskey’s golden age
TEXT OF STORY
Doug Krizner: Bacardi’s the largest privately-held, family-owned maker of spirits in the world. They’re known for rum, but Bacardi also makes Scotch whiskey. And the company’s pouring out millions of dollars to cash in on a growing thirst for Scotch in emerging markets. Stephen Beard reports.
Stephen Beard: Bacardi is splashing out $240 million on its Dewar’s Scotch whiskey brand. The plan is to upgrade the company’s blending, packaging and bottling operations in Scotland.
Demand for Scotch is booming especially in Asia and Latin America. Sales are surging in China and Venezuela due the rapid growth of a wealthy middle class in those countries.
Bacardi and other Scotch manufacturers also have their eyes on India. The government there recently scrapped a punitive tax on imported booze. David Buik of brokers BGC:
David Buik: In previous days, Scotch whiskey accounted for less than 1 percent of the whiskey sold in India. But with this lower taxation level being implemented that could quadruple, easily, if not more.
Earlier this year the drinks giant Diageo said it was spending more than $200 million on a Scottish distillery, also to cash in on growing demand in Asia.
In London, this is Stephen Beard for Marketplace.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
