The KOTQ

Secret Agent Malts

Let me regale to you the story of two secret agents in the cloak & dagger world of Wm. Grant & Sons (Dufftown) the distiller of The Balvenie and Glenfiddich. Doggedly traditional in their practices, the Balvenie distillery is still dedicated to the traditions, care and craftsmanship of malt whisky making. These are clearly people who care about malt whisky and don’t want anybody else messing with their elixir – their “water of life”.

Our Heroes

Into this idyllic malting environment steps our heroes…

Burnside and Wardhead

Their task – protect the singularity and uniqueness of Wm. Grant’s single malts (without drawing too much attention to themselves 8) ).

Our Story

The Balvenie range of single malt whiskies is unique – three single malt whiskies of different age and different character. Each Balvenie single malt reflects in its individuality, different aspects of the tradition, skill and care that are the hallmarks of the Balvenie Distillery (and thus a great candidate for a vertical tasting – see Discussion Points below). This ‘brand’ is jealously protected, indeed, official distillery bottlings are all you are likely to find – and just like with Glenfiddich, independent bottlings are very rare indeed (there are exceptions, although, admittedly rare).

This is where our heroes come in. After all, someone has to protect the hallowed brand images of The Balvenie and Glenfiddich from the dark and sinister world of the malt whisky broker and the independent bottler 😈 . Ordinarily, each cask of Balvenie or Glenfiddich that is sold to brokers or blenders is ‘polluted’ with a minute quantity of the other malt, making it a ‘vatted malt’ and thus illegal to sell as a single malt. This prevents a third party, such as an independent bottler, from bringing the whisky to the market as a single malt from a particular distillery.

These vatted malts, our heroes, aren’t sold under their official names either…

‘Burnside’ is Balvenie with 1% Glenfiddich.
while ‘Wardhead’ is the name for Glenfiddich with a dash (1%) of Balvenie

Denouement

Why does Wm. Grant & Sons feel compelled to do this? I mean why don’t they just not sell it to other people? The economic reality of the Scotch industry, I guess much like every industry, is that cash flows from the mass market where blends rule the day. Every distillery has to sell their whisky to brokers and blenders or risk not participating in the economy of their industry and becoming insolvent. Wm. Grant & Sons does indeed participate in this demand-driven economy but transacts into that economy with their slightly vatted malts thus legally insuring that the only destination that the whisky can have is as part of a blend and not as a single malt (from an independent bottler let’s say).

Discussion points

1) Just how chummy are The Balvenie and Glenfiddich? If you can add 1% of each into the other without materially affecting the character doesn’t that say something to how similar they really are?

2) What’s the big deal with the brands The Balvenie and Glenfiddich? Independent bottlers have a way of presenting single malts as being exclusive and special. It seems to me that The Balvenie and Glenfiddich are as mass market oriented as you can get in the single malt industry in the US. I think The Balvenie and Glenfiddich could use some help haloing exclusivity into their brands.

3) Did anyone notice what Burnside really is? Not just a vatted malt but it was a 6yo! I didn’t realize just how insidious the practice of blending is, although it does fit all of the evidence…not only are they 75-80% grain alcohol but the remainder single malts are usually aged, I’ll guess, less than 8 years! It all makes sense now! I finally see the light on what blends are and how they got that way (taste that is). Why, for instance, you can have a premium progression from Red Label, to Black Label, Gold Label, and Blue Label – they must simply be using longer aged single malts in the more “premium” blends.

4) And now for some fun…given this excerpt from above “The Balvenie…is unique – three single malt whiskies of different age and different character” can the KOTQ – Chicago Chapter discern these different characters?

The Balvenie malts its own barley. It’s one of the few remaining distilleries that doesn’t outsource this process. Gorgeous image of their malting room below. Learn more from this presentation.

SIR GEORGE BULL Biography
Patron, Keepers of the Quaich

United Kingdom
Former Chairman
J Sainsbury
Former Joint Chairman
Diageo
Sir George Bull has had almost four decades’ experience in the wines and spirits trade.

After starting his career with a brief period in the advertising industry, Sir George entered the trade in 1957 and joined International Distillers and Vintners (IDV) in 1961.

During his first twenty years with IDV his responsibilities included UK marketing, export sales and European wine companies. He became Deputy Managing Director in 1982, then Chief Executive in 1984 and Chairman in 1987.

Having been appointed to the Board of Grand Metropolitan in 1985, he then moved from IDV’s drink sector to become Chairman and Chief Executive of GrandMet’s food sector in 1992. One year later he became Group Chief Executive of Grand Metropolitan, taking the Chairman’s role in 1996.

Sir George then became one of the principal architects of the largest merger in UK corporate history when he helped orchestrate the £22 billion Grand Metropolitan merger with Guinness. He became Joint Chairman of the newly merged company, Diageo, in December 1997, and retired from the company seven months later.

He then became Chairman of J Sainsbury, a position he held from August 1998 to March 2004.

Sir George was knighted in 1998 for services to the alcoholic drinks industry.

Lessons
Understanding The Consumer
Don’t try and tell the consumer what you want them to know, as this can prove to be a costly mistake. Instead, definitively research the market to understand what they want – and give them this information, rather than what you want them to hear.
Motivating Through Communication
Motivation by management facing issues head on, and communication with the whole company about these issues, can break down barriers and help new processes to thrive.

Source: BBC

ANDREW DEWAR-DURIE
Keepers of the Quaich, Management Committee, Vice Chairman

Mr Dewar-Durie’s career began in the whisky industry, initially involved in marketing and subsequently senior management. He was Managing Director of Allied Distillers from 1992 to 1997, and served as Chairman from 1997 to 1999. He is a former Chairman of Confederation of British Industry, Scotland, (1997-1999), having previously served as Vice Chairman in 1996. He has also been a Non-Executive Director of Britannic Asset Management (2001) and a Director of the Edinburgh Military Tattoo (2000). He joined the Sea Fish Industry Authority in April 2000. He is a member of the Council of the Scotch Whisky Association, a Master of the Keepers of the Quaich and became Chairman of the Confederation of British Industry Scotland in September 1997.

He appears to have no connection to the Dewars whisky though additional research may be necessary.

Our own group is a tongue-in-cheek homage to the actual ‘Keepers of the Quaich’, but they aren’t that much older than we are – founded in 1988. The “real” Keepers of the Quaich, in essence, is a public relations vehicle of the entire Scotch whisky industry intended to promote the image of Scotch whisky worldwide. It is owned by the scotch distilleries and is the kind of collaboration that can only be born when tough financial times grip an entire industry and way of life. Whether or not it is a successful vehicle I will leave up to you as you review it’s background, mission, and key objectives.

One cool thing to note is their castle home complete with the Atholl Highlanders (the only legal private army in Britain) mounting a guard during their bi-annual ceremonies and banquets!

THE SOCIETY

The Keepers of the Quaich is an exclusive non-profit making society, with membership by invitation only, for people with a positive record of association with Scotch whisky. The society was established, in the Autumn of 1988, by the major companies in the industry to build on the image and prestige of Scotch whisky at home and abroad and, for the first time, the industry pooled its enormous resources and strengths to promote itself with pride.

The organisation includes as its members leading representatives of the Scotch whisky industry and those who have contributed to the successful marketing of Scotch whisky in fifty-four countries across the world, together with noted Scotch whisky connoisseurs and characters. All have one fundamental link in common – a love of Scotland and Scotch whisky.

MOTTO

The club motto awarded by the Lord Lyon is:

‘Uisgebeatha Gu Brath’

Gaelic, which means ‘The Water of Life For Ever’

BACKGROUND

For some years Scotch whisky sales, and indeed the image of Scotch whisky per se, had been in decline. Conversely, other beverage types had enjoyed growth, in part at the expense of Scotch. The time had come, therefore, for the industry to unite more effectively market their unique product so that once again Scotch whisky could become a powerful growth sector with worldwide sales expanding and jobs in Scotland created. There were many different initiatives required to be taken individually and collectively by the industry to reverse the situation and many of these would primarily depend on the expertise of the individual Scotch whisky companies. It was nevertheless, strongly believed that a carefully projected and exclusive PR vehicle built around the aura, mystique and heritage of Scotch whisky would play a significant and positive part in helping to re-establish the image of Scotch whisky.

MISSION STATEMENT

“To advance the standing and prosperity of one of Britain’s premier export industries, and to make more widely known its uniqueness, traditions, quality, service and benefits to the community it serves at home and in the markets of the world.”

KEY OBJECTIVES

1) To build interest in, and add value and prestige to, Scotch whisky both at home and internationally.

2) To influence the leaders of the drinks industry in order to gain a greater amount of their time and energy in promoting sales of Scotch whisky.

3) To reward individuals for their services to the Scotch whisky industry.

4) To motivate and stimulate the press to project Scotch whisky in a more favorable and positive light.

5) To bring together and unite all areas of the Scotch whisky business and engender a greater sense of belonging.

METHODOLOGY

In recognition of services to Scotland and the Scotch whisky industry, a limited number of carefully selected people are twice yearly invited to become members of this exclusive society.

Membership is conferred at an induction ceremony followed by a banquet at Blair Castle in Scotland. The induction ceremonies take place in the spring and autumn.

BLAIR CASTLE

Blair Castle the ancient home and fortress of the Earls and Dukes of Atholl is situated in the wide Strath of Garry and commands a strategic position on the main route through the central Highlands. It lies on the northern side of the Perth – Inverness road in a wild and romantic setting of forest-clad mountains and picturesque rivers.

GRAND MASTER
George J Bull, Group Chief Executive, Grand Metropolitan PLC

CHAIRMAN
Richard Waitling

VICE CHAIRMAN
Andrew Dewar-Durie

MASTER OF CEREMONIES (FEAR AN TIGH)
Sir Anthony Greener

PIPER
Tom Thomson

Here’s the gist of the International Order of the “Companions of the Quaich” (edited slightly). I offer these FAQ’s in the ‘spirit’ of the ‘cork’. You may view this site directly at www.thequaich.com.

What is the Society?

The Companions of the Quaich is a non-profit society dedicated to promoting and sharing knowledge and enjoyment of Single Malt Whisky.

Who are the Companions?

The Companions are an eclectic group of ladies and gentlemen who share a common interest in, and a passion for, the malt whiskies of Scotland and the world.

What are its aims and objectives?

To encourage, in a relaxed and friendly atmosphere, a greater awareness of the history and methods of malt whisky distilling, and to make available brands that are not normally sold in provincial liquor stores.

How is this achieved?

Through regular dinners and tastings at which three different malts are presented by knowledgeable members, special guest presenters and malt masters or head distillers from other countries.

How is it international?

By our affiliation with other malt whisky societies around the world — currently 13 chapter in Canada.

Is the Society different from other malt whisky groups?

It is distinguished from other societies by the number of events held and our value-for-money pricing (coincidentally, it’s $40 CND). The Companions meet for dinner and tastings up to 12 times a year, and our whiskies are sold to members at cost, with no mark-ups or commission charges. Also, our malts are aged for a minimum of 15 years (except for cask-strength versions).

How do I join?
Simply contact us and we will send you an application form to fill in and return (view this on their site).

Cheers.