10-Year-Aged 'Jack Daniel's'...
"First Release Outside the U.S."
Korea Brown-Forman is introducing the 'Jack Daniel's 10-Year-Old' aged product. This is the first time that Jack Daniel's, aged for more than 10 years, is being exported. While the domestic whisky market is showing signs of stagnation, Korea Brown-Forman plans to capture demand for premium whisky by leveraging the rarity of high-aged American whisky.
10-Year-Aged 'Jack Daniel's'... "First Release Outside the U.S."
On May 15, at its headquarters in Nonhyeon-dong, Gangnam-gu, Seoul, Korea Brown-Forman held a press conference to unveil the new premium lineup of American Tennessee whisky, Jack Daniel's. Chris Fletcher, the master distiller overseeing the Jack Daniel's distillery, visited Korea to personally introduce the brand's history and unique production methods.
On this day, Jack Daniel's unveiled two new products in Korea for the first time: 'Jack Daniel's 10-Year-Old' and 'Jack Daniel's Bonded Rye.' Jack Daniel's 10-Year-Old follows the same ingredients and production process as the flagship product, 'Jack Daniel's Old No. 7,' but differs in its aging method and duration.
This product focuses on recreating the whisky from the era of Jasper Newton Daniel (1849-1911), the American distiller and founder of Jack Daniel's. The founder, Jasper Daniel, produced and sold high-aged whiskies matured for 10 to 21 years, but after his death and through the Prohibition era (1919-1933) into the present day, high-aged American whisky has become rare.
Master Distiller Fletcher explained, "The average temperatures in Tennessee and Kentucky, where American whisky is primarily produced, are much higher than in Scotland, so it is rare to age whisky for more than four years. In Scotland, due to the colder climate, aging for more than 10 years is common, but in the U.S., when whisky is aged for 10 years, the evaporation rate?what we call the 'Angel's Share'?can reach 50%." He added that, because aging occurs at relatively high temperatures, sufficient maturation can be achieved in a shorter period, but the high evaporation rate and management costs result in higher production costs, making the production of high-aged products limited.
However, as demand for high-aged products that offer deeper and smoother flavors has increased, production began for the first time three years ago, and currently, 10-year, 12-year, and 14-year products are being sold in the United States. Master Distiller Fletcher said, "Because high-aged products require an absolute amount of time for maturation, it also took time to secure export volumes. Since this is the first time Jack Daniel's whisky aged more than 10 years is being released outside the United States, I hope people will enjoy the whisky in its purest form."
Along with Jack Daniel's 10-Year-Old, Jack Daniel's Bonded Rye was also introduced. Bonded Rye starts with a delicate aroma of dried fruit, followed by a soft lingering sweetness of toffee, resulting in a complex yet balanced overall flavor. In particular, the signature spicy finish unique to rye whisky makes this product especially attractive. Master Distiller Fletcher added, "Bonded Rye delivers the best flavor when enjoyed as a cocktail. I am especially proud of how it shines in an Old Fashioned."
Can Brown-Forman Overcome Market Challenges with Premium Whisky?
Recently, the domestic whisky market has shown signs of stagnation. After rapid growth during the COVID-19 pandemic, the market contracted last year due to intensified competition from oversupply and a slump in consumption caused by the economic downturn, and a similar trend continues this year. According to Korea Customs Service import/export trade statistics, as of April this year, whisky imports totaled 7,096 tons, a 13.7% decrease compared to the same period last year (8,221 tons). The import value also fell by 16.7% to $63.62 million (about 8.9 billion KRW) from $76.44 million in the same period last year. These declines are greater than last year's decreases of 10.3% in import volume and 4.0% in import value.
Korea Brown-Forman also faces the challenge of improving profitability this year. As a company with an April fiscal year, Korea Brown-Forman turned to a loss last year (May 2023 to April 2024), recording an operating loss of 1.4 billion KRW. Sales maintained strong growth, rising more than 20% year-on-year to 58.6 billion KRW, but profitability was significantly damaged after the Korea Customs Service imposed a 25.8 billion KRW penalty under the category of 'taxes and dues.'
With the market slowing and calculations becoming more complex for whisky importers, Korea Brown-Forman is focusing on expanding the lineup of its flagship brand, Jack Daniel's. Since Jack Daniel's is a brand with high recognition and stable demand, the company believes that offering a wider range of products can attract a more diverse consumer base. An industry insider explained, "It is easier and less costly to sell extension or derivative products of a well-known brand than to establish a new brand with no recognition in the market. Jack Daniel's has the highest level of brand awareness among whiskies sold in Korea, so it is clear that a smooth expansion of its lineup is relatively easier compared to other brands."
With domestic demand diversifying from low-priced whiskies for highballs to super-premium whiskies, Korea Brown-Forman is putting even more effort into strengthening its premium lineup. Earlier this year, before launching Jack Daniel's 10-Year-Old, Korea Brown-Forman introduced 'Jack Daniel's Bonded.' Jack Daniel's Bonded is a premium product made strictly according to the 'Bottled in Bond' regulations, using only spirits distilled at a single distillery during the same season, aged for more than four years, and bottled at 50% alcohol by volume. In addition to Jack Daniel's, the company is also strengthening premiumization strategies for each brand, such as the 'Masters Anthology' collection of the Scotch whisky 'GlenDronach.'
The whisky industry believes that, unlike in the past when 20-30% annual growth was possible, single-digit growth can still be sustained. An industry insider predicted, "The recent poor performance of whisky companies can be seen as a normalization process after a temporary surge in demand led to oversupply. As sales increase and quantitative growth continues, once inventory and demand normalize, the industry can expect to return to a stable growth trajectory."
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