Offering broad appeal, diverse products, and continuing innovation, the North American whiskey category is an important part of the Australian spirits market. With a production history dating back to the late 1700s, North America is home to a number of established production regions, including the famed regions of Kentucky and Tennessee, as well as distinct whiskey styles.
The most popular style of North American whiskey, Bourbon, can only be produced in the USA with at least 51 per cent corn. Bourbon is a key category in Australia, with Australian adults enjoying more Bourbon per capita than any other country. As the third largest global Bourbon market by value, the Australian market is also particularly important to the Bourbon industry within America.
According to Kayla Grigoriou, Angel’s Envy Whiskey Specialist, Bacardi-Martini Australia, the segment will see continued growth over the coming years.
“Australia is a very mature Bourbon market, and it is Australia’s second biggest category after vodka, bigger than blended Scotch and rum. The growth in Australia is set to continue with IWSR predicting ultra-premium Bourbon will grow at 5.8 per cent CAGR from 2023 to 2028, the leading growth segment within Bourbon,” she said.
Rachel Pullicino, Jack Daniel’s Marketing Manager, Brown-Forman Australia, said that the category also offers versatility, with consumers drinking products in a variety of different ways.
“North American whiskey is a very versatile liquid. There are a number of expressions within the portfolio that meet different needs and occasions, with super premium, flavours, RTD and mainstream or core Bourbon. It can be enjoyed in its traditional serve with coke, neat, as a cocktail or with simple mixers for a more refreshing way to drink,” she said.
With a strong existing consumer base and potential for further growth, evolving consumer preferences and category innovation present new opportunities for the segment.
A broad reach
The North American whiskey category spans from approachable RTDs to complex aged expressions, resulting in a diverse consumer base who engage with the category for a multitude of reasons.
Brand loyalty has traditionally been important for consumers as they seek out labels they know and trust.
“The North American whiskey consumer is predominantly male, albeit now more than 30 per cent of consumption comes from females. The traditional male drinkers are highly loyal shoppers and often plan their purchase before entering a store. Brand is important to them, but they do tend to have a repertoire of trusted brands they choose from, which if not available, they will shop around to find,” Pullicino said.
According to Katrina Altman, Whiskey Portfolio Brand Manager, Iconic Beverages, other demographics demonstrate more exploratory purchasing behaviour.
“The Australian consumer of North American whiskey is evolving, with a younger crowd stepping into the premium scene and looking for unique flavours. These drinkers are more informed than ever and are on the hunt for distinctive experiences that stand out in the market,” she said.
Additionally, new styles are drawing in different demographics, according to Drew Doty, Managing Director, Proof Drinks Australia.
“The category has seen some expansion into premium and liqueur styles recently, which is gaining new consumers for the category. Generally, whiskey has been male consumer focused, however with the introduction of liqueurs, this has started to gain an audience with some women looking to expand out of traditional drinks. I also believe that consumers that were focused purely on Scotch have moved across with the new ageing styles available in American whiskey,” he said.
Amid this increased interest in North American whiskey, Alice Huelin, Buffalo Trace Distillery Brand Manager, Southtrade International, said that consumers need further education about the breadth of products on offer.
“As the category grows and recruits new drinkers, it will continue to open up education opportunities. There’s a big opportunity to expand accessible education for consumers new to the category. They often want to understand the basics: how best to drink it, how it is made, and hear about brand stories.”
Constantly evolving
A key strength of North American whiskey is the unique and innovative spirits available within the category, which both honour the region’s production heritage and maintain category interest.
“The North American whiskey category preserves traditional production methods while exploring innovative approaches like secondary barrel finishes, unique grain blends, and new ageing techniques. Innovations in flavour profiles and complex expressions attract both traditional whiskey enthusiasts and new audiences seeking distinctive experiences,” Grigoriou said.
With demand for North American whiskey expanding and diversifying, the growing number of brands entering the Australian market present an opportunity for retailers to encourage continued category engagement.
“The craft profile of North American whiskies has captured the attention of a much broader audience in the past five years. We have seen consumers become more experimental, develop more refined tastes and look for new and interesting flavour profiles and experiences. This evolving interest highlights the growing appreciation for quality and innovation in the overall whiskey market,” Altman said.
In this context, smaller and emerging distilleries encourage category exploration, as well the revitalisation of traditional styles, such as rye.
Retail optimisation
An innovative and diverse category requires unique approaches to consumers. With many consumers seeking out brands with distinct identities and stories, brands are engaging with consumers in new ways.
“Brands are investing in experiential events, tastings and dedicated brand specialists to deepen connections with consumers and enhance appreciation for North American whiskey,” Grigoriou said.
Sampling remains an important part of category recruitment, and Huelin encourages retailers to expand this strategy to premium and limited-edition products as well as core range products.
“The industry’s focus on large 700ml and 1L formats means that consumers can be hesitant to try something new. Creating spaces and events for premium and limited-edition releases will build excitement and keep people coming back for more,” she said.
Additionally, as North American whiskey consumers are engaging with the category for a wide variety of reasons, a broad selection of products and brands will enable retailers to reach more people interested in the diverse category.
“Beyond the well-known Bourbons and ryes, there’s a rich variety of styles, innovative production methods, and unique flavour profiles waiting to be discovered. Bring customers in through the brand’s core offerings and seek limited releases as exclusives to keep your customer engaged in what is next,” Altman said.
According to Huelin, North American whiskey represents a valuable opportunity to engage with consumers looking for new and exciting products.
“The Australian market is craving more variety and experiences, and North American whiskey is perfectly placed to meet that demand. With the rapid growth of certain brands within the category, there’s a lot of excitement ahead, and now’s the perfect time to get involved,” she said.
With an increasing number of consumers showing an interest in the category and evolution and innovation from producers, the North American whiskey category has continued relevance to Australian retailers. A focus on diverse offerings and premium ranges are of particular importance to capitalise on ongoing category growth.
This article originally appeared in the November issue of National Liquor News, which can be read in full here.
