Irish Whiskey in France: A Snapshot of Where to Play

Rebecca Bergin, Markets – France, Belgium & Luxembourg 

(Image source: Rebecca Bergin, Bord Bia, 2022)

 

France is the fourth-largest consumer of whiskey in the world in terms of volume, presenting a remarkable opportunity for Irish whiskey producers. It is also the second largest consumer of Scotch whiskey in the world and had been the largest consumer until recently surpassed by India (ISWR, 2023). The overall whiskey category declined by -4.7% in volume consumption in 2022 compared to 2021 and is projected to decline by less than 1% per annum between 2022 to 2027. While French whiskey is becoming more popular, it is experiencing marginal growth in volume terms (Euromonitor, 2023).

Irish whiskey stands out as a resilient category, experiencing growth of 3.9% in 2022, the only whiskey category to grow in France besides Indian whiskey, which grew by 7.5%. Irish whiskey is projected to grow by almost 1.7% per annum over the next 5 years, showcasing its promising future. Certainly, big players such as Jameson and Connemara whiskey are notable examples of brands experiencing significant growth and raising the profile of Irish whiskey through robust promotional activities (Holway, 2023) (Rayon Boissons, 2023).

The off-trade accounts for 88% of whiskey consumption in France (Euromonitor, 2023). The off-trade is split in France between mainstream retail and specialist retail shops called cavistes. Originally focused on selling wine, most cavistes now also offer a wide selection of spirits and are becoming an interesting target for producers of premium spirits.

Mainstream Retail Channel

Grocery retailer, E.Leclerc, is market leader in mainstream retail in France, followed by Carrefour and Intermarché (IGD, 2023). Scotch dominates the mainstream retail channel with prices typically under €30 and rely heavily on promotion, especially during periods such as Father’s Day and Christmas (ISWR, 2023).

(Image source: IGD, 2023)

Caviste Channel

(Image source: Rebecca Bergin, Bord Bia, 2023)

Premium brands favour the caviste channel over the mainstream retail channel as the mainstream channel is more price focused.

There are approximately 5,800 cavistes in France, 3/4 of which are independent establishments (Neiman, 2021). Cavistes collectively generate a total revenue of two billion euros per annum. Market leader, Nicolas, was the first caviste to open in France over 200 years ago and currently has close to 600 stores. See below for a breakdown of the number of stores of the top six caviste chains in France (Delafontaine, 2021).

The strength of the caviste is that they are highly trained, usually owner-run businesses, who take the time to get to know their clientele and educate them on different products.

Cavistes typically purchase from a selection of distributors, however, some of the largest chains such as V&B often buy direct.

For an Irish brand to unlock success in the French off-trade channel, working with a dedicated distribution partner is key. Understanding the reach of a distributor’s distribution network is vital to ensure you can work together to steadily grow the brand. Securing distribution in France is a hard and long process. To obtain distributor buy-in, a brand needs to be visually pleasing and convey a compelling story, which can be easily communicated and sold.

If you would like to develop an off-trade strategy for your business in France, please contact Sarah.Phelan@BordBia.ie

 

References

Euromonitor (2023) Whiskey Market Volume France, s.l.: Passport Euromonitor.

Holway, J. (2023) Executive Summary Report 2023 France, s.l.: ISWR.

IGD (2023) Insight on France - The market and its growth prospects to 2027, s.l.: IGD.

ISWR (2023) Whiskey Global, s.l.: ISWR.

Neiman, O. (2021) Cavistes, un secteur qui ne connaît pas la crise. Le Monde.

Delafontaine, L., (2021). Les cavistes en réseau. [Online] Available at: https://www.observatoiredelafranchise.fr/dossier-franchise/les-cavistes-en-reseau-2140.htm

Rayon Boissons (2023) Whiskies Premium - Les Scotch malts secoués comme jamais par le passé, s.l.: Rayon Boissons.