Whiskey is one of the most popular alcoholic beverages in the world. A compilation by Liquor Laboratory lists down whiskey as the most popular drink after beer. Another list, from the more reliable World Taste Atlas, lists down the 100 most popular alcoholic drinks in the world. This list is full of whiskies such as Johnnie Walker and as a testament to the drink's popularity, after Champagne, Whisky and Scotch Whiskey are the two most popular drinks, according to the publication. Apart from Johnnie Walker, some of the most well known whiskies are Bourbon, Jack Daniel's, Jim Beam, Tennessee Whiskey, and Japanese Whiskey. Similarly, some renowned Scotch Whiskies are Highland, Speyside, Islay, and Lowland. Scotland is an absolute beast when it comes to whiskey production, as you'll find out later in this list.
An Analysis of the Whiskey Industry
Global whiskey production is also different when it comes to raw materials. For instance, America is known to have popularized the liquor made from corn immediately after the American revolution, as corn was readily grown in the U.S., and farmers were incentivized to find better uses for their crop waste. Additionally, the drink was also the source of one of the earliest rebellions in post revolution America, as it was the first domestically produced product to be taxed. So strong was the resistance to taxing whiskey, that the rebellion had to be put down with the help of militias, which were headed by President Washington himself.
Nowadays, the whiskey industry is quite peaceful. Not only does it regularly pay taxes, but it is also worth billions of dollars. According to research from the firm Allied Markets Research, the industry was worth $59 billion in 2019 and will grow at a compounded annual growth rate (CAGR) 4.9% between 2020 and 2027. This will enable it to sit at an estimated $86 billion by the end of the forecast period. Driving this growth are several factors such as a shift to spirits from beer and the tendencies of millennials to be more experimental with their drink choices, which in turn has led to a growth in cocktail demand.
The market itself is divided into several categories, listed primarily by the country in which whiskey is produced. It includes American whiskey, Canadian whiskey, the legendary Scotch whiskey, Japanese whiskey, and Irish whiskey. Scotch whiskey was the dominating product category, and along it, Europe as a whole was the world's largest whiskey consuming region. This makes sense as China, which is often the largest consumer of several products, doesn't drink a lot of whiskeys. Instead, the Chinese rice spirit Baijiu is the most popular drink in the country, and owing to China's massive population, it is also one of the more popular alcoholic drinks in the world.
With America battling inflation, the spirits industry itself has been seeing a mixed bag performance. This was highlighted by the management of Constellation Brands, Inc. (NYSE:STZ) during the analyst conference of its third fiscal quarter of 2023 earnings report when management outlined that:
So all in, our Wine & Spirits business continues to make meaningful progress on its transformation. And while net sales and operating margins, net of recent divestiture, were slightly lower relative to the third quarter of last fiscal year due to volume shifts from shipment timing only being partially offset by mix and pricing benefits we did see a significant sequential uplift in operating margins of 55 basis points relative to the second quarter of this fiscal year. This gives us confidence to reaffirm our fiscal ’23 guidance for our Wine & Spirits business of stable to 2% lower net sales and 3% to 5% operating income growth, which we are providing against the fiscal ’22 baseline adjusted for the recent divestiture. Looking further ahead, we are also confident that over the medium term, both our beer business and our Wine & Spirits business remain well placed to deliver strong growth and best-in-class operating margins.
Along with Constellation, some well known whiskey and spirits companies are Brown-Forman Corporation (NYSE:BF-B), Pernod Ricard SA (EPA:RI.PA), Diageo plc (NYSE:DEO), and LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC.PA).
Sweden is a Northern European country that is one of the most developed nations in the world with a GDP per capita of $63,877. The country makes several kinds of whiskies. These come from several different distilleries such as the Mackmyra distillery, the Spirit of Hven distillery, and the Box Destilleri. Out of the trio, Mackmyra is the largest distillery and sells different brands of whiskies such as Svensk Rok, Special 07, Vinterrok, and First Edition - which is matured in virgin Swedish oak casks. Spirit of Hvev, on the other hand, makes more expensive whiskies, most of which often retail for more than 80 Euros a bottle.
11. Kingdom of Denmark
Insider Monkey's Score: 2
Whiskey Exports in 2021:$46 million
The Kingdom of Denmark is another developed Northern European country. Unlike some other whiskey industries that have been operating for decades, Denmark's whiskey is relatively younger. However, that doesn't mean there's a dearth of whiskey makers in the country. Some distilleries in the country are Trolden Whisky Distillery, Nyborg Distillery, Mosgaard Whisky microdistillery, Fary Lochan distillery, and the Limfjorden distillery. Some famous Danish whiskey brands popular in the country are Fary Lochan, Thy Whisky, ÆRØ whisky, BRAUNSTEIN, STAUNING WHISKY, and Barely Legal Whiskey. Most of these have been produced since 2010.
10. Commonwealth of Australia
Insider Monkey's Score: 3
Whiskey Exports in 2021:$26.7 million
Australia is a large Oceanian country known for its commodities and agricultural exports. A little known fact about the country is that it has a centuries old whiskey industry. Australians started brewing whiskey back in the 1800s, and continue to do so today. Some popular distilleries in Australia are the Lark Distillery, Sullivans Cove Distillery, Starward, Fleurieu Distillery, and Geographe Distillery. Notable whiskey brands include Lark Rare Cask PARA100 (which dates back to 1878), Sullivan’s Cove French Oak, and Starward's Fortis Single Malt. Out of these, Sullivan's is the most expensive, with starting prices higher than AUD400.
9. Federal Republic of Germany
Insider Monkey's Score: 3
Whiskey Exports in 2021:$285 million
The Federal Republic of Germany is Europe's largest economy. This strength is also visible in its whiskey, as while it scores similar to Australian whiskey, the exports are more than tenfold greater. Like Australia, Germany also has a longstanding whiskey making tradition. The oldest distillery in the country is the Schlitzer Destillerie, which was set up in 1585. Other German distilleries are the Rothaus distillery, Bayerwald-Bärwurzerei Spezialitäten-Brennerei Gerhard Liebl, and Slyrs. Some famous German whiskey brands are Elsburn 7 Year Old, Hardenberg Club Straight Wheat, Freud Whisky Distillers Cut, and Slyrs Single Malt - Port Cask Finish.
8. French Republic
Insider Monkey's Score: 3
Whiskey Exports in 2021:$362 million
The French Republic is another European nation that is also a whiskey making powerhouse. However, unlike the Australians and the Germans, the French are new entrants to whiskey making, with the first distilleries tracing their roots back to the 1990s. Since then, dozens of distilleries have sprouted in France, with some of these being Glann ar Mor, Warenghem, and Grallet-Dupic. Out of these, Warenghem is the oldest distillery, and France is also home to one of the most famous companies in the world, LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC.PA). The firm also makes whiskies.
7. Taiwan
Insider Monkey's Score: 4
Whiskey Exports in 2021:$102 million
Taiwan has an interesting whiskey making history, as while it has been producing whiskey for quite some time, the industry was privatized only in 2002. However, the Taiwanese climate gives it a strong whiskey making advantage since the spirit in the region matures much faster than it can in the top whiskey making countries like Ireland and Scotland. Some well known whiskies in the country are Kavalan Concertmaster - Port Cask Finish, Kavalan Sherry Oak, Yushan Signature Sherry Cask, and King Car Whisky - Conductor.
6. Republic of India
Insider Monkey's Score: 5
Whiskey Exports in 2021:$119 million
The Republic of India is one of the largest economies in the world and one with a large population as well. Whiskey was introduced to the country by the British during its colonization. However, it wouldn't be after Indian independence that the first distillery, Amrut Distilleries, started producing whiskey. Some Indian whiskey making companies are Khoday India Limited, Mohan Meakin, and United Spirits Limited.
