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Nothing to grouse about: Morag Cuddeford Jones charts the growth of a local Scottish whisky into a world renowned drinks brand, and discovers that the water of life doesn't always flow smoothly.

Article Excerpt
It may be March, but marketers at The Famous Grouse's parent company The Edrington Group are celebrating a very merry Christmas. The Scottish blended whisky was already number two in the UK behind Diageo's Bells but Christmas sales figures show that the brand has leapfrogged the drinks giant to steal number one in value terms. On top of 2003 pre-tax profits of 61.7m [pounds sterling], up 24.6% from 2002, the brand has maintained volume sales while Bells slid 3%, and the rest of its blended competitors followed suit. Santa Claus has delivered the goods.

Thanks to the success of Wilkinson, Johnson et al in November 2003's Rugby World Cup, The Famous Grouse (Grouse) enjoyed a bumper year.

Initially, it seemed like the brand might have made a mistake. Since 1990, Grouse has sponsored the Scottish rugby team, who lost in the World Cup quarter finals. Shirts with logos were disallowed because, as direct competitors, they would have compromised Diageo's tournament sponsorship deal. As a result Grouse failed to benefit despite the 300 million strong TV audience worldwide. Also, the tournament was largely broadcast at breakfast time in Europe--its strongest market--which is hardly the ideal time to crack open a bottle of 40% proof whisky

Nevertheless, the combined efforts of a PR effort 1.5m [pounds sterling] rugby themed advertising campaign in Europe pushed market share to 30% just in time for Christmas.

To the uneducated palate, there is little about Grouse whisky that seems remarkable. Alongside blended brands such as Diageo's Johnnie Walker, or Allied Domecq's Teachers, it has neither the premium price tag of rarer malt whiskies such as Balvennie, or the rebellious frisson of a bottle of 'Jack' (Daniels) bourbon. It can often be hard to distinguish one brand from the 30 mainstream blended whiskies on the off-licence shelf. Surely Grouse is just another product of the Scottish tourist board's tartan and shortbread image?

Yet whisky in its home market is worth double that of the 'cooler' white spirits such as vodka and rum. In the 100 international markets where Grouse is sold, the brand is growing apace. Grouse has grown by 23% in the US, the home of bourbon such as Jack Daniels or Jim Beam, 22% in Greece where it outsells the national spirit, ouzo, and 16% overall worldwide.

Barrie Jackson, group strategy director of...