McClelland's Single Malt Whiskey - A journey of discovery

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SUMMARY

McClelland’s. A successful product, a quality serving, selling reasonably well globally, has a large following yet received little or no attention and was, to put it bluntly – badly dressed.

The brand was successful, however somewhat stuck in a time when it was once fashionable to be dressed in water colours. So, just as every good ‘artiste’ updates their look to move with the times, so did McClelland’s. Giving it the due care and attention it desrved delivered some serious results including an annual increase of 25% in a global whisky market growing at 7% per annum. It became number four Single Malt in the United States of America and entered eight new markets. For Morrison Bowmore Distillers, it was the single most profitable brand in any one market, competing directly against huge competitors such as Glenlivet, Glenfiddich and The Macallan.

Packaging Food and Drink Nevis Design

“Morrison Bowmore's direction for the brand is not only to educate, but to launch McClelland's into new markets. We have the ability, distribution and sales force, so now we are setting the wheels in motion – watch this space”

David Wilson, Sales & Marketing Director

EXECUTIVE SUMMARY

McClelland's. A successful product, a quality serving, selling reasonably well globally, has a large following yet received little or no attention and was, to put it bluntly – badly dressed.

The brand was successful, however somewhat stuck in a time when it was once fashionable to be dressed in water colours. So, just as every good 'artiste' updates their look to move with the times, so did McClelland's. Giving it the due care and attention it deserves – and some serious results:

Annual increase of 25% in a global whisky market growing at 7% per annum
No. 4 Single Malt in the United States of America
Rapidly expanding export.8 new markets – and STILL growing
Single most profitable brand in any one market for Morrison Bowmore Distillers
Competing directly against huge competitors such as Glenlivet, Glenfiddich and The Macallan.

“Despite solid growth in the past few years, Glenmorangie was leapfrogged last year by the McClelland's brand, which has more than doubled in US volume since 2000” - Impact Magazine, 2007

PROJECT OVERVIEW

Improve the current design. Highlighting the unique selling propositions, without alienating the current consumer…
Encourage consumers to acquire knowledge of the single malt Scotch whisky and its regions
Act as an approachable, non-patronising entry point for consumers into single malt Scotch whisky
Fulfill a gap in the market for a high quality, single malt Scotch whisky.

DESCRIPTION

Established in 1818, the McClelland's Single Malt family is a range of Single Malt Scotch whiskies from four of Scotland's key whisky distilling regions – Highland, Islay, Speyside and the Lowlands. Priced at the lower end of the single malt whisky market, the brand acts as an entry level malt, educating the consumer about single malt, its origins and history.

The pressing issue for McClelland's was the packaging, although successful in 'its day', the labelling and outer casing were dated and tired, the bottle widely adopted and the image of the brand against the competitor was, well, poor.

Organic growth was the key; establishing a clear brand position within a tough global malt market.

Original Packaging

SCOTLAND'S NATIONAL DRINK

The global whisky market remains buoyant, growing at roughly 7% per annum*. Optimism is high based on a number of fundamentals, including the wide range of products on offer and a constantly growing interest in the category.'

With so much interest, competition is fierce. Products need to appeal to a wide spectrum of factors, ranging from aesthetics to the 'quest for knowledge' that so many drinkers display habitually.

But let's not forget the credit crunch. Consumer is king – and he is knowledgeable. Now was the time for the reasonably priced, quality whisky to reign strong.

PROJECT LAUNCH DATE

January 2007

SIZE OF DESIGN BUDGET

£15,000

THE SOLUTION

This led to the birth of Mr McClelland and the enrichment of tones in the water colour paintings depicting the whisky's region. The newpackaging still reflected the key elements of the region with stunning landscapes now the work of recognised illustrator, Kathy Wyatt. The intention is for consumers to be able to identify at first glance with a character that evokes the essence of the region, as well as hinting at the expression of the whisky.

A longer glance from the customer will result in a hidden story being told: that of Mr McClelland, a Renaissance man, a writer and adventurer whose life is a journey of discovery. He's well educated, interesting and knowledgeable, with an infectious passion for single malt whisky. With this persona he invites consumers to embark on a whisky pilgrimage to uncover 'the true spirit of Scotland' by encouraging them to sample the four key expressions.

Mr McClelland, a Renaissance Man

Mr McClelland, the Adventurer SUMMARY OF RESULTS

Sales

The new packaging and branding concept provided immediate results. A 25% increase in volume was a result of not only new market gains but a re-focus for current markets as they began to take McClelland's seriously as a Single Malt.

“People are asking for the brand now, asking how the other regions taste, looking at the website – the following has gone from buying based on price to brand loyal" - Store Owner, Mitra, Holland.

Increase in Market Distribution

The new-look packaging and strong associated point-of-sale items have won the approval ofnot only current global distribution partners, but also 8 new markets

= 8 new distributors and hundreds of stores world-wide.

No other whisky product in the entry-level bracket can compete with the power of 4 shelf facings, captivating package, associated support materials, and the overall educational value that is McClelland's.

New markets include:

Taiwan / Germany / South Africa / UK / Austria / Scandinavia Duty Free / Holland / Russia

R.O.I

Together, with a global price rationalisation and a volume increase since the re- pack McClelland's has delivered over 18% R.O.I, all for a mere design fee of

£15K, in a global market growing at an average of 7% per annum.

Moving forward, with an annual volume increase of 10%–12% (as a result of stock restrictions), a brand selling 40,000 cases in 2003 will be over 100,000 in a few years time.

“The success of the brand in the USA makes it extremely valuable for the company, bringing in more profit than any other brand in any given market. It is now the number four selling malt USA wide, a huge accolade in itself due to the fierce competition which exists in the American marketplace. Given the already established brand name, financial backing and dedicated support, the brand can only go from strength to strength" - Mike Keiller – CEO, Morrison Bowmore Distillers.

Research Sources

1/ The Scotch Whisky Industry Review, 2007,2008 2/ IWSR, 2009

3/ All figures on sales & distribution provided by Morrison Bowmore Distillers, May 2009

[APPENDICES]

McClelland's: A Range