Diageo To Discontinue/Allocate Brands in Canada

[Greg B.]

I am hearing that Diageo is slowly announcing to liquor boards across the country that they will be either discontinuing some brands outright while others will be placed on allocation and be limited in supply. I hear Johnny Walker Green will be discontinued in Canada, with other JWs on allocation. Other blends such as J&B and Bells are also on either allocation or gone altogether (not sure which) after the end of they year. Don't know about their single malts but it would make sense that perhaps those are at risk too.

Apparently they believe they can make more money selling these in the Far East than here.

[pmullin]

I had heard this unofficially a few weeks ago, now it appears to be official: Diageo is pulling their Scotch from some, and possibly all, Canadian markets.

http://www.cbc.ca/canada/new-brunswick/ ... ml?ref=rss

As Queen Victoria would have said*, "We are not amused".

[Ganga]

Yep, we'll give you Ballantines instead of Lagavulin and Talisker. I'm left wondering if some of these are bad decisions with the current world economy.

[pmullin]

I'm left wondering if some of these are bad decisions with the current world economy.

You have to wonder... bailing on a traditional market to chase business in places where something else (like weasel-flavoured vodka) might well supplant you next year as the "latest, greatest, trendy thing".

[Moose]

I have heard the same news from one of their competitors.

So, I plan on getting a few Taliskers, another Oban, a GlenKinchie and probably a Lagavulin.

It's too bad, the prices in NB are just so good. Oban 14 at 80$.

[Novice Scotch Fan]

This happened a couple of years ago with respect to fine wine also. Don Melchor was a highly acclaimed Chilean wine a few years ago and won "wine of the year" by Wine Spectator Magazine. New Brunswick Liquor Corporation had pre-paid an order of this wine, but delivery was cancelled by the distributor because due to the high Wine Spectator ratings, they were able to charge more in the US market.

I find it hard to believe that Diaego would be pulling the entire Johnnie Walker line from New Brunswick. I could see them disconitinue the supply of JW Green and Gold because they do not sell particularly well here, especially the Green. But JW Black? I can't imagine it. I would think that they could produce enough of it to supply the Far East and here. But, evidently that is not the case if the news article is to be believed.

I work in government so I sometimes watch the media inaccurately report events, anyway, maybe Diaego will stop supplying certain Johnnie Walker products (ie. JW Green), but continue to supply others (ie. red and black). A non-scotch enthusiast journalist might not pick up on this. I personally think this is more likely the case with respect to JW. However, with the better products like Lagavulin, I can easily see it disappear from the shelves for good.

Not good news.

[Novice Scotch Fan]

Any New Brunswickers ever buy a bottle of scotch on Ebay or from a US retailer and have it shipped to their homes? I have wondered about this. I think it is technically illegal as the provincial govt has a monopoly on liquor sales. But, I am thinking that if i buy a bottle on Ebay or from a US retailer and they ship it via FedEx, might it get to my door anyway? Would it get stopped at the border for additional duty? Any thoughts?

[SoMK]

^ Chances are you will be taxed to death.
I now just drive to the US to get a few bottles and usually, for 2 bottles, they look somewhere else.

[Elagabalus]

I doubt Diaego will pull any JW product from Ontario. I can see them doing it to a small province like New Brunswick but surely not Ontario.

[CanadianThistle]

Well I doubt Diageo will pillage a lucrative market like Ontario, but they may well ravage the Maritimes or we poor prairie dwellers.

Diageo has already hiked up the prices in the LCBO though - a bottle of Ardbeg 10 in Manitoba is still about $60.00 But I fear what may happen once the existing shelf stock is depleted and a re-order goes in.

Shocking news.

I suspect a large part of my Christmas bonus will be going towards stocking my cellar - although I may lean away from Diageo brands on principle.

[CraigL]

A few of us at work are tempted to go to the NB Spirits show later this month with some homemade tshirts to show our displeasure. Definitely stocking up on Talisker asap!

[Deactivated Member]

Pulling product in an established market to fuel sales in other parts of the world is mind-bogglingly insulting. I suggest we compile a comprehensive list of Diageo products for Canadians to avoid. If Diageo can live without Canada, Canada can live without Diageo.

[Iain]

Diageo has already hiked up the prices in the LCBO though - a bottle of Ardbeg 10 in Manitoba is still about $60.00 .

I believe Ardbeg's a Glenmorangie brand.

[SoMK]

Caol Ila, Cardhu, Clynelish, Cragganmore, Dalwhinnie, Glen Elgin, Glen Ord, Glenkinchie, Knockando, Lagavulin, Oban, Royal Lochnager and Talisker.

Yup, I for one can survive with Glenfarclas, Macallan, Highland Park, Aberlour and Ardbeg alright !

[DavidH]

But thats just me....I don't understand those markets in the east it seems like a fad market or something. Can someone explain how that side of the world is becoming a bunch of whisky drinking rednecks/single malt snobs?

At the moment, whisky + mixer is the drink in the clubs and bars. A huge amount of promotion means that customers ask for a JW + green tea, or a Chivas + green tea.

The number of bottles that one establishment can flog in a night is phenomenal.

And the promotion by Diageo/Pernod Ricard is on another level, far more than in the west. In fact, they spend so much on this that I wonder if they are actually making much profit, despite the volume of sales.

[tossedsalad]

And so it goes to Nova Scotia http://www.cbc.ca/canada/nova-scotia/st ... cotch.html

Its a little ironic that this article is appearing tonight, the same evening as the Ceiligh put on by the NSLC here in Nova Scotia. I was going to go but the limited offerings made me save my $45.

New Brunswick has really good prices on just about everything. Whenever traveling through I'd stop and buy a bottle or two and save anywhere from 10-20 dollars.

Its funny, I special ordered a case of Laphroig because the last bottle was sold in NB and I figured no more would show up because of the 'shortage' and low and behold just a month ago I saw a full shelf at the NB liquor store. Go figure.

[SoMK]

Apparently, the Quebec SAQ is so far unaware of the move...

[Moose]

A few of us at work are tempted to go to the NB Spirits show later this month with some homemade tshirts to show our displeasure. Definitely stocking up on Talisker asap!

LOL CraigL - I'll be at the show. I'll bring my camera to see those t-shirts. DO it man..

[lohssanami]

Well you see here....Im drunk now...
...Now I only need to get a cheaper source of ardbeg. I know this girl that went away and I made a list of SMS to bring back but I might have to perform cunnilingus in order to get my ardbeg.

If that's all I had to do to get Ardbeg, I'd buy nothing else...haha.

Sounds like you're having a great time tonight, and I might have to try 40 Creek soon. Cheers....

[lisa]

It is kind of strange that Diaego would PR this move this way.
Another way of putting it (that might sound slightly more sympathetic to Diaego - even if the net result would be the same) would be to say that the (Canadian) importer could not accept the price demanded by Diaego.
An example is Norway (which also has a monopoly distribution system) where Talisker 18 is still available but now to the "happy" price of almost 110€ a bottle. That´s what you get for turning a bottle into "the best SMSW in the world".
Norway is of course a high taxed spirits country but they do manage to sell fx Glenlivet XXV for just above 150€.

[lohssanami]

It is kind of strange that Diaego would PR this move this way.
Another way of putting it (that might sound slightly more sympathetic to Diaego - even if the net result would be the same) would be to say that the (Canadian) importer could not accept the price demanded by Diaego.
An example is Norway (which also has a monopoly distribution system) where Talisker 18 is still available but now to the "happy" price of almost 110€ a bottle. That´s what you get for turning a bottle into "the best SMSW in the world".
Norway is of course a high taxed spirits country but they do manage to sell fx Glenlivet XXV for just above 150€.

Good point Lisa. With the high demand the Asian market, and others, may be placing on Scotch Whisky, some markets may suffer. It's unfortunate if it's a market you live in...

[kallaskander]

Hi there,

I think it was last year that Diageo anounced plans to tripple the worldwide sale of Johnnie Walker within the next 5-8 years. And we are talking about Red Label the scotch which is already the best selling in the world. So do not fear it will remain in Canada.

Here in Germany Diageo informed retailers that Talisker 18 will be not available again before summer 2009.
Yesterday I saw it at a super market - for about 10 Euros more than the last price I had in mind.

At the moment there is not much Black&White scotch on the German market.

It sells for 6 US $ more a bottle in China!


It could well be that Diageo and not only them are shifting their portfolios to maximise profit.

In the light that in the last three years Diageo had an annual growth of about 15% every year and that it is hard to keep that up for happy shareholders in a climate of recession in the established markets every strategy to further growth rates in this order might by welcome.

Greetings
kallaskander