As a wealth manager by day and proprietor of the Montgomery Scotch Lounge by night, Ottawa-based Brian Montgomery has unique insight into the financial impacts of global economic uncertainty on whisky sales. In his view, while Canadians might scrimp at the grocery store or do their best to avoid the gas station, they will continue to gravitate towards the experience economy. “One thing about recessions is that there are certain aspects of people’s consumption that will change so even though they might buy a less expensive cut of meat or choose to bike more instead of drive, they still want to rewards themselves. Now, more than ever, a run of the mill dinner is not enough bang for their buck”, he explained. This balance of scrimping and saving to splurge on purchases that make memories or stimulate the reward center of our brains is the art of what economists are calling “split-brain budgeting”. The occasional shopping spree, Michelin-starred meal, or $800 bottle of whisky makes all that penny-pinching more bearable and serves as a reminder that we still lead a good life. While consumers might be shopping less frequently or buying fewer bottles, Kensington Wine Market has seen a subtle shift towards premiumization. “This trend is especially notable amongst the millennial generation who are keenly interested in the category. They might be drinking less, but when they do,
they’re looking for quality”, Ferguson states. Although going premium is increasingly top-of-mind, Mr. Ferguson fears that some brands might be alienating the next generation of whisky drinkers: “I think some industry players are getting greedy by pushing product prices too high and I think that’s going to sap demand.” For their part, Beam Suntory continues to focus on curating splurge-worthy moments. James Neil explains: “We have partnered with the Versante Hotel in Richmond British Columbia where upon room check-in, there is a Maker’s Mark bourbon or Bowmore Scotch tasting flight waiting for you. When you are ready to enjoy the whiskies, there is a scannable QR code that shows up on the TV screen, and I virtually appear to personally take you through each whisky”. The Montgomery Scotch Lounge in Ottawa Ontario is of that same mindset, “What we’re trying to offer is a rounder experience – a little bit of education combined with the full spectrum of food, alcohol, and entertainment,” confirms Montgomery. “If we can pull that off, then we are recession- proof.”
*Canadian Centre for Substance Abuse Commission study, April 2020 * *Abacus Data polls January 2023 / March 2023
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the whisky explorer magazine
FALL 2023
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