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ALCOHOL DRINKING is declining and in the Nordic countries –Denmark, Norway, Sweden and Finland – it is no different. From 2010 to 2016 overall consumption has fallen by 9% in the region. Average consumption across Scandinavia is 7.5 litres of alcohol per person – well below the EU average of 8.7ltr, according to Diageo, the world’s largest premium drinks company.

Mikael Lundén, Diageo Reserve’s senior Nordic brand ambassador whisky & rum, tells Drinks International: “We see whisky being enjoyed right across society, across all social classes and age groups. Across the Nordic region, we see people drinking better, not more. People are generally more interested in premium products with a sense of history and provenance and, with our strong portfolio of brands such as Johnnie Walker, Talisker and Lagavulin, Diageo is well placed to be a trend leader.

“The global trends around cocktails and mixology have been really strong in the Nordics, with customers wanting to drink better quality spirits. We have also spent a lot of time working with our customers on their knowledge of our brands and through activities such as World Class & Bar Academy, where we work with bartenders to improve the experience consumers get when ordering a drink,” says Lundén.

The other global spirits company, Pernod Ricard, owns Irish Distillers which makes the major Irish whiskey brand Jameson. Global brand director Dan Lundberg, tells DI: “The whiskey category continues to thrive in Scandinavia, with the main growth being seen in the premium-plus categories, where the wider Jameson Family is priced.

“Premium whiskey is the largest segment and continues to be dynamic, growing at 18.2% in the year ending June 2016, which has been supported by Jameson. This is the result of strong development in the off-trade, due to the rise in at-home consumption of premium-and-above spirits, and the on-trade, driven by the growth in cocktail culture and beer backs.

“The key whisk(e)y trends we are seeing emerge in Scandinavia are premiumisation, growing levels of consumer knowledge of and interest in whisk(e)y, and brand innovation. In response to increasing consumer knowledge and demands for more information about whiskey, we unveiled the brand new Jameson Family in June last year, which redefined the Jameson range and encourages drinkers to embark on a credible and meaningful exploration of the category,” says Lundberg.

Denmark is a ‘free’, open, market for alcohol, like most European countries, whereas retail in Norway, Sweden and Finland is run by state-owned monopoly shops. Their buyers determine who drinks what in their respective countries, except for travel retail/duty free. Out-of-home drinking is expensive.

Historically, Norway and Finland are important markets for brandy, specifically cognac. The Danes like their whisky, particularly scotch, but Denmark was a producer and is still a significant consumer of akvavit (the Norwegian company Arcus took over Danish Distillers, closed the Aalborg distillery and is now the major producer of virtually all aquavit in Scandinavia). The Norwegians also like their ‘akevitt’. They age it and savour it like scotch. But they also like a whisky.

SWEDES IN FOCUS

When you think of whisky and Scandinavians, it is the Swedes who are forefront of mind. Altia is a leading wine and spirits company offering premium brands in the Nordic/Baltic countries. Altia’s business director for spirits, Kimmo Nylander, takes up the story: “Sweden is the leading whisky market in volume terms. The interest in malt whisky is a long-term trend and one that seems to be continuing unabated. In Sweden, the consumer appetite for age statement whiskies is growing. However, strong brands, such as the newly-launched Bunnahabhain Moine still succeeds without the age statement.

“Both the Irish and American whiskeys are growing fast in the Nordics. In these categories, more brands are entering market every year but also the leading brands, such as Jack Daniel’s, are doing really well and driving category growth,” says Nylander.

Swedish writer Ingvar Ronde, publisher of the Malt Whisky Yearbook, says: “The Swedish consumer, in my mind, is very knowledgeable about whisky, whisky production and the different styles of whiskies but they are still a bit conservative.

“The main interest lies in scotch whisky but the aficionados, as always, are leading the way and single malts from Japan, India and Taiwan are highly regarded in that small group of consumers. The trend of enjoying whisky in cocktails and drinks hasn’t really taken off in Sweden but I think it’s only a matter of time before younger consumers in the bigger cities have introduced that way of enjoying whiskey to a wider audience as well,” says Ronde.

Lundberg picks up on the Irish mention. Jameson is the most popular Irish Distillers’ whiskey in the Nordics. The Jameson Family collectively sold 98,800 9-litre cases in the region in the year ending June 2016 (source: Irish Distillers).

Lundberg, says: “The demographic of whiskey drinkers in Scandinavia is changing – while established enthusiasts, who are very knowledgeable about the category, still represent a large proportion overall, we are seeing people from all age groups become whiskey drinkers. These new consumers are inspired by the heritage, craft and drinkability of Irish whiskey, which presents a great opportunity for Jameson and the Jameson family going forward.”

“Irish whiskey suits the general Swedish palate very well. Two of the top 10 whisk(e)ys in Sweden are Irish –Tullamore Dew and Jameson. I also see a growing interest from aficionados in whiskies from, for example, Teeling and Cooley,” says Ronde.

Diageo’s Lundén pitches in for scotch: “We see whiskies from the (Scottish) west coast and Islay as the market leaders. So brands such as Oban, Talisker, and Lagavulin are all extremely popular in the Nordics. However, Johnnie Walker is also increasingly popular, and grew by 14% last year across the region.”

Whereas Altia’s Nylander says: “Obviously, blended scotch is the biggest category but it is the one category seeing no growth today. Global giants such as Johnnie Walker are less dominant in the Nordics. The blended whisky category is scattered and volumes lean to entry and mid-level priced whiskies.”

MALE DOMINANCE

So who is drinking all this whisky? Ronde answers: “The consumers are still dominated by men but certainly not older men. The old saying that young men don’t want to drink what their fathers did doesn’t apply any longer. You see a lot of young people in their early 20s obsessed by whisky and scotch malt whisky in particular.

“Also, more and more women enjoy whisky in Sweden today and surprisingly often their way into whisky was through a peated scotch. We have around 30 whisky shows in Sweden each year and the number of female attendees is steadily growing. One thing, though, is still a very male speciality and that is what I call the ‘nerdy side’ of drinking whisky, where you get together in clubs and have tastings, you read whatever you can find about whisky and you get together for a whisky trip to Scotland to visit distilleries.

“For whisky enthusiasts peated whisky is definitely the top priority, even though I have started to see a change also here. The fascination for peated whisky is very much a Scandinavian thing but the reason for that is a bit obscure. It could have something to do with the rugged climate or the fact that we enjoy flavourful food such as pickled herring etc. The general consumer, on the other hand, prefers smooth whiskey from Canada or Ireland or the softer side of scotch whisky,” says Ronde.

Lundén says: “What we see now is consumers wanting to know more about the products they consume, their provenance, and the history and heritage.”

So much for scotch. What about other whiskies, including locally produced ones which are increasingly coming to the fore? Nylander says: “The local monopoly tender process favours all brown spirits, especially whiskies, at the moment. However, monopoly assortment model follows consumer demand and whisky is trendy today.”

Ronde opines: “A few years ago I thought bourbon would become more popular than it is today, in line with the growing interest in bourbon in other parts of the world. The problem is that we have a very narrow selection of quality bourbon in Sweden and the importers and distributors are not very persistent in trying to promote new versions. This, of course, could also have something to do with the fact that we have a state monopoly when it comes to selling alcohol and sometimes getting a new brand on the list is like getting a camel through a needle’s eye.

SUSTAINABLE MODEL

And locally produced whiskies? “We have around a dozen producers of malt whisky in Sweden but only four of them have released whiskies that are widely available,” says Ronde. “The establishing of whisky distilleries in Sweden is a new phenomenon and most of the founders seem to be men driven by their interest in whisky.

“Having said that, a few of the companies have along the way managed to establish a sustainable business model as well with the companies being run in a very efficient way and with a goal to make money for the investors. Two of them, Mackmyra and Box, are starting to establish themselves in the export markets as well. The majority of their fans in Sweden can be found among the enthusiasts but the interest in Swedish whisky has slowly started to trickle down to the general consumer as well,” says Ronde.

Local, craft whisky has caught the eye of Diageo. Lundén says: “Locally produced whisky is experiencing a period of growth, and this is to be welcomed. Diageo has supported this growth by investing £10m in Danish distillery Stauning. It’s hoped this investment will continue to support the development of indigenous Nordic whisky.”

Nylander says: “Locally produced whiskies are growing, but from a small base. As the price point is relatively high, users are more knowledgeable whisky drinkers, with some exceptions, of course.”

Spiros Malandrakis, Euromonitor International senior industry analyst for alcoholic drinks, sums up the Nordics and whisk(e)y. He says: “There is nothing spectacular except possibly the experimental nature of consumption and them starting their own distilling. The Nordics are in line with general trends in western Europe. Bourbon is growing while blended scotch is stagnating, although in Denmark, it is up 2%-3%. Whereas single malts are up 10%-11%.

“Sales of Japanese whisky are booming in Norway, 44% up in 2015. Canadian whiskies are not doing very well generally. There is no support. In most of the markets there is a fascination with premium so Canadian whisky does not fit in with that trend,” adds Malandrakis.

Dan Lundberg concludes: “Innovation has also played an important role in attracting new consumers, combining the traditions of the past with the expertise of the present.”

So, it is difficult to generalise about the Scandinavian countries when it comes to whisky, wherever it may come from. With retail in all but one of the countries totally controlled by state-run monopoly shops, what brands people can choose from is decided by a couple of people in each monopoly country. Two things stand out – scotch still rules and Sweden is the major market for it. Local whiskies – it is early days. It will be a while before the brand managers of the likes of Johnnie Walker and Jameson have sleepless nights. But with the populism of all things ‘craft’ - think beer and gin and what the latter has done to vodka, you can understand why Diageo has bought into a Danish distillery. Just in case, as they say.