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72 entries categorized "Opinion"

May 17, 2007

My response to Carl's comment...

I thought this response was important enough to make it's own post...my response to Carl's comment from the previous story...

I certainly don't want to turn this into some sort of feud between Mr. MacLean and myself. He has a great body of work, which I respect and enjoy.

And god knows I've pissed enough people off.

I agree that Mr. MacLean seems to affirm that he feels that the SWA is playing bully to the Indian government. He does not say "I never said that".

But he certainly also tenders his support for the SWA.

I currently have the very enviable position of simply being a pundit with a number of opinions and a website which I use to make my opinions known.

And thankfully, I do not rely on anyone associated with the whisky industry for my income. As a result, I am free to say what I believe, and not feel obligated to play both sides.

It's a freedom which I enjoy - but which also ensures I'll forever be on the outside of this industry. (You don't piss off Charles MacLean, Paul Pacult and Diageo and expect to be named a "Keeper of the Quaich").

In the Indian situation, I think it is apparent to anyone with even a cursory knowledge of the issue that the Indian Government is playing protectionism at its most blatant - and spitting in the face of free-market economies - all the while whining about not being allowed open access to markets.

Did you all know that Mr. Mallya is a member of India's Parliament?
- He is.

See the connection?
- I do.

May 15, 2007

Is India being bullied?

That's what Charles MacLean, arguably "Scotland's foremost whisky writer", seems to think.

In Sunday's The Telegraph (Calcutta India), Charles MacLean, was interviewed in regard to the long-running, and imminent sale of Whyte & Mackay to the UB group.

MacLean also said the “Scottish Whisky Association has been trying to bully the Indian government” into lowering tariffs — and he forecast this, too, would happen since lower taxes would be good both for the Indian government and the Scottish whisky industry.

Wow. Does MacLean really view the very reasonable attempts by the SWA to get tariffs lowered as "bullying"?


<UPDATE 1: If Mr. MacLean was misquoted by the Indian Press, I certainly invite him to let everyone know that fact here on The Scotch Blog and demand a retraction from the Telegraph!>


Perhaps it is MacLean's existing business relationship with Mallya that is coloring his views:

In November, UB flew him to India for a hectic tour of Delhi, Mumbai, Calcutta, Bangalore, Hyderabad and Goa during when his mission was to speak about Black Dog, a brand first made by Whyte & Mackay in 1879 but now owned and marketed by Mallya.

“When someone as astute and as close to the levers of power as Vijay Mallya starts looking to secure spirit supply by buying Scotch distilleries and brands and promoting his own Scotch, Black Dog, which I helped with last November, then the writing is on the wall,” said MacLean.

MacLean must have also bought into the propaganda of the Indian government/media/beverage industry triumvirate and accepted the Indian claim that this molasses-based distilled beverage is, in fact, whisky, and not the more appropriately named "rum".

MacLean pointed out. “Bear in mind that India is the largest consumer of whisky in the world by a long chalk — 70 million cases per annum; global sales of Scotch amount to a mere 85.5 million cases. All but less that one per cent of the whisky drunk in India is locally made.”

The regulations of most nations do not agree that it can be called whisky - and every legal definition of the countries which do not allow the India spirit to be imported dictate that whisky is a distillate made from grains.

The sun never sets...

Mr. Mallya has made a ridiculous correlation between the SWA's protection of the Scottish Whisky industry and 19th century "British imperialism".

"This imposition of British imperialism is unacceptable," Mr Mallya was quoted as saying last year. "The SWA has to understand there are two sides to the coin. They have double standards. I will continue to oppose SWA coming to India until they allow us to sell in England and Scotland."

The SWA has NO desire to "go to India" they simply want to allow Scotch whisky to have a fair shot at being sold in Asia. Campbell Evans' quote from yesterday's story was on the money:

"This is often dressed up as an issue for the Scottish industry, but there are 70 countries around the world that have legal definitions that whisky be made from cereals.

If you've read The Scotch Blog in the past, you'll know that I appreciate what the SWA does on many fronts, and I disagree with them on as many. On this one, I am 150% behind them.

Fallout?

If you thought the saga of the purchase of W&M was interesting, wait until the purchase actually happens - which according to sources will (barring last-minute problems) be announced tomorrow in Glasgow for somewhere around £610m.

Will Mallya withdraw Whyte & Mackay as an SWA member? Will the SWA extend an olive branch - by way of a council seat to Mallya? Will there be a talent flight from W&M?


<UPDATE 2: When a member company's ownership changes, under SWA rules, that company ceases to be a member of the Association.  Anyone who is a distiller, bottler, or blender of Scotch Whisky, who is prepared to sign up to the terms of membership, can apply to join.>


Two things are for sure.

  1. Resumes are being freshened up at Dalmore House, and
  2. Willie Tait and Richard Paterson will be told not to talk to me anymore :).

May 14, 2007

Hey, how about this self-serving idea?

What do you do when you don't like how the world views your product? Change your product?

HEAVENS NO! You try to change the world.

Apparently that's how the Indian liquor industry views the world of business, because during the World Whiskies Conference, the managing director of India-based United Spirits (part of Vijay Mallya's United Beverages Group) called for the deregulation of the whisky industry.

Apparently they don't like the fact that stringent rules about the definition of whisky prevent their molasses-based rum from being called whisky and sold abroad.

Their solution? Get rid of all those pesky rules & regulations from around the world that define beverage identity.

From ArabianBusiness.com:

The managing director of Indian-based United Spirits has called for the deregulation of the global whisky industry. Speaking at last month's World Whiskies Conference in Glasgow, Vijay Rekhi said steps should be taken towards an all-inclusive category.

"There should be no barrier on whisky definition based on geography, as this can, and does lead to constraints on consumption. Whisky cannot ring-fence itself, so I think we need to broad-base the definition of whisky in all parts of the world," he urged.

In his speech to delegates, Rekhi stressed the potential of the Indian beverage market for Scotch whisky. Despite a global increase in demand for the beverage, the amount exported to India last year dropped by 6%, with the Scottish Whisky Association blaming the Indian tax regime - which can add up to 550% in import duty - for the decline in sales.

Campbell Evans, director of government and consumer affairs at the Scotch Whisky Association responded by saying that the World Trade Organisation's issue of tariffs was totally divorced from the Indian definition point, and therefore something that had to be resolved by the Indian government.

"This is often dressed up as an issue for the Scottish industry, but there are 70 countries around the world that have legal definitions that whisky be made from cereals, so it is a national issue" concluded Evans.

One World Whiskies Conference attendee was at this presentation and told me:

It led to a lively debate and lots of discussion. I think it's fair to say that he didn't convince many people.

April 20, 2007

Meaningless titles

I recently received the following email:

Good Day,

Caught this podcast by one of my favorite food writers.  Not sure about the comments from the "Master of Scotch" John Overslee.  He is awfully fond of Johnnie Walker Black. Thought he would come up with some other names.
 
 
Cheers,
Robert Bruce E.
Thanks for asking the question, Rob. Let's get this straight once and for all.

The "Masters of Whisky" are Brand Ambassadors for the Diageo whisky brands.


Now, I know a number of the Masters of Whisky (formerly Masters of Scotch Knowledge) and, speaking for the ones I know personally, they are knowledgeable people who are great speakers and great representatives for their brands and company.

HOWEVER, I'm annoyed by the fact that there seems to be a concerted effort on the part of Diageo to position them as having had some sort of honor bestowed upon them - while failing to mention the Diageo association. This is not cool.

Continue reading "Meaningless titles" »

March 28, 2007

The Soap Opera Continues

Unless you are in the industry (or a lawyer), you likely do not share my morbid fascination with the ongoing pissing match between India and the world's alcohol producers.

Although we focus on whisk(e)y here, it may not surprise you that I am a fan of all things fermented and/or subsequently distilled. And although I have many friends who hail from that exotic sub-continent and I love me some Indian culture - in a gang fight I'm going to side with alcohol.

Make no mistake, this issue with discriminatory taxes goes far beyond Scotch whisky - it's a punitive tax on all alcohols that are non-Indian. This is not a sin-tax - it's a protectionist-tax.

Come on kids, learn from those crazy Soviets - 1. Protectionism doesn't work. 2. Free-market economies shall prevail. And most importantly 3. People want access to alcohol. Those three market forces alone say "Put away your dicks and do the right thing."

Of course this is all for show. As soon as Mallya completes his acquisition of Whyte & Mackay, the ice will mysteriously begin to break; the Indian gov't will decide to re-examine their position - all so Mallya can more easily import the (soon-to-be-Indian-owned) Whyte & Mackay products. Now, if there is a way to keep some of the taxes in place - while letting W&M in at a different rate, I'm sure they will figure out a way to do so. Am I alluding to some level of political corruption within foreign governments? Of course not - (plus who am I to cast aspersions? - I live in the US). I'm just sayin'...

Want to read more of my incoherent ramblings on the "Indian Situation"? Of course you do:

Just because you keep saying it, it doesn't make it true... (May 2006)

The Issue with Tariffs (June 2006)

SWA + EU + WTO vs. India (August 2006)

Indian Ownership? (August 2006)

WTO to deal with India (November 2006)

You can also read the latest salvo (in the form of yet another press release) from the SWA:

Continue reading "The Soap Opera Continues" »

January 24, 2007

Whisky Blog Graveyard

It's amazing how cough medicine will make your mind wander.

In my case it made me think of all the emails I've received from people telling me how they were searching the Internet, found my site and want to "exchange links". Or how some budding Michael Jackson wants to announce, with great fanfare, that he has launched the greatest "whisky blog" since... well you fill in the rest.

Sitting home sick on a Saturday gave me some time to do something I rarely have time for...checking out the (horribly named) blogosphere to see what else is out there.

I guess this looks easy - coming up with new stories - sometimes 3 or more a week. Serge certainly makes it look easy - he makes me look like a slacker with multiple posts a day. Where does he get the time to drink all that whisky...and THEN write??? :)

But seriously this really is a lot of work...as many people find out. Especially if you choose to do a bit more than simply repost news stories from other sources (I never quite understood why someone thinks there's a value in that). But I digress courtesy of NyQuil.

Some of the sites I came across have an interesting viewpoint. Some are excellent writers. Some of them abuse the English language and shouldn't be allowed near a keyboard. Most of them didn't last very long.

Continue reading "Whisky Blog Graveyard" »

January 10, 2007

Ruining it for everyone

Were you one of the people who took advantage of an offer for a free hip flask by purchasing a bottle of Glenfiddich?

Were you one of the people who fraudulently tried to get something for nothing?

Apparently there was a code included with bottles of Glenfiddich which offered a free flask - all you had to do was go to a web site, enter the included code and in return, you'd be sent the flask - assuming of course you had purchased a bottle of Glenfiddich.

Alan Lazerow emailed me to ask me if I knew anything about the fact that people had not been receiving their promised flasks.

I contacted Sharon Owen, one of the excellent Glenfiddich & Balvenie U.S. Brand Ambassadors, to see what she could tell me about the issue.

Continue reading "Ruining it for everyone" »

December 25, 2006

Columba Cream Responds

MERRY CHRISTMAS!!!

Unless something REALLY big pops up, this will be the only story this week.


A few months (September 6th) ago, I did one of my news wrap-up stories (Whisky Season = News Stories) which included a short clip on how Columba Cream was having issues with its plans to take on Diageo's

That story was a summary of a story from The Scotsman called Columba Cream Plan Hits The Rocks.

I just received a response from Jamie Morrison of the Scottish Liqueur Centre, who took some issues with my story and attempted to clarify some statements. It's great to get more information and I thank Jamie for writing me.

Below is his email, my response to some of his comments as well as the text of the original story.

Continue reading "Columba Cream Responds" »

December 18, 2006

Houston, we have an (image) problem. (Part 2)

Pass the Courvoisier

When I was growing up Cognac was considered to be more of an old fuddy-duddy drink than Scotch. And compared to the pronunciation of 'Courvoisier', 'Bruichladdich' seems simple.

But now it’s the hip drink of the gangsta-wannabe - and every15 year old can pronounce it. How’d that happen?

This from a 2003 Wall Street Journal Article:

Behind this trend are the likes of Sean "P. Diddy" Combs, Snoop Dogg and other rappers who have embraced the pricey brandy with the 300-year history as a status symbol. That has spawned a cult cognac following among young urban blacks, who mix the liquor in new cocktails with names like "Thug Passion" and "French Connection."...

The U.S. imported 3.7 million cases of cognac last year, up from 1.3 million in 1993, accounting for 36% of the world-wide market. Hennessy, the biggest cognac brand in the U.S., with 53% of the market, says young blacks now account for 60% to 85% of its U.S. sales. That surge in consumption has helped the roughly 20,000 Cognac-area inhabitants whose livelihoods depend on the cognac trade...

Am I suggesting that someone make Scotch the next hip-hop status symbol? Well, if your goal is to sell a lot of it quickly, by creating a fad-based demand, then, er…yes. But there are better ways to achieve increased and longer-term sales without resorting to that tactic.

Continue reading "Houston, we have an (image) problem. (Part 2)" »

December 11, 2006

Houston, we have an (image) problem. (Part 1)

In the U.S. there is much confusion over what Scotch is, how it differs from Bourbon, and what makes it “Scotch” - and the industry working as a whole has done little to clarify the confusion. As a result, the average American is averse to most whisk(e)y beverages.

Word Association

I am told, with absolute certainty (by Americans), that “Scots don’t like the term “Scotch” and it shouldn’t be used."

Really? Is that why the term is printed on every single bottle?

The truth is that the industry should get on their knees and thank the barley gods that Americans aren't really clear on the terms “whisky” and “Scotch” and don’t necessarily think of them as synonymous.

You DO NOT WANT Americans to think “whisky”. Why? Read on…

I asked about 50 people to email me the first 1 or 2 words that came to mind when I mention the following words: Scotch, Whisky, Whiskey, Tennessee Whiskey, and Bourbon. All of the respondents consume alcohol, but are not single malt Scotch whisky drinkers. The majority drink high-end white spirits as well as being fans of American micro-breweries, Belgian, German & English beers.

Continue reading "Houston, we have an (image) problem. (Part 1)" »

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