• Wall Street Journal, Tuesday, June 8, 2010 10:45 AM

Scotch whisky is becoming a fashionable drink in developing countries, Paul Stone reports, and liquor companies are expanding production at a rate not seen in 40 years. Demand is also increasing in Scotch's largest market, the U.S., where the value of imports rose 13% last year over 2008. Christian Porta, chairman and CEO of Pernod Ricard's whisky and gin business Chivas Brothers, sees nothing but growth ahead.

"Consumers will try to make statements about their success, and whisky is perfect for that," observes Sebastian Concha, global drinks analyst at insight firm Mintel. "This is a big driver across all of the developing world."

Multinational companies now dominate the whisky industry, Stone points out, and have the large-scale distribution networks and marketing clout needed to push Scotch whisky further into countries such as Brazil, Venezuela, Russia and China. Diageo's global Johnnie Walker campaign, "Keep Walking," has been adapted to the Chinese market to emphasize collective success instead of individual achievement. Pernod Ricard's Chivas ads, on the other hand, promote a connection between Scotch and a young, luxurious and fun lifestyle.

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