The Scottish Whiskey Market in Canada: A Business Analysis

Canada, much like Australia, has a strong affinity for Scottish whiskey over American brands like Jack Daniels. This preference translates well into retail markets that specialize in Scottish products, including whiskey. Interestingly, while these dedicated Scottish stores can be found in many parts of Canada, they often operate under stringent licensing rules that limit their ability to sell alcohol.

Availability and Types of Whiskey in Canada

Scottish whiskey is widely available in Canadian liquor stores. However, due to its popularity, it often faces stiff competition from Canadian whiskey, which is distilled primarily from rye. This is reflected in the market dynamics where sales of spirits, including whiskey, are declining.

It's worth noting that despite the ease of access to Scottish whiskey, the majority of Canada's alcohol sales are through provincially controlled systems, such as the LCBO (Liquor Control and Licensing Board of Ontario). This further complicates the operations of specialty stores selling Scottish and Irish goods, as they need to source their products from official suppliers rather than importing them independently.

The Current Market Landscape

Many larger cities in Canada already have specialty stores dedicated to Scottish and Irish goods. For instance, when I visited Scotland a few years ago, I had to hire a kilt by getting measured at a local Scottish store. These stores often require special licenses to operate, and even those with alcohol licenses are usually unable to sell a wide range of products, including certain types of whiskey.

The regulatory framework in place for liquor sales ensures that only provincially controlled stores can sell certain alcoholic beverages, which limits the scope for independent retailers to thrive. This market has little to no room for expansion, and attempting to enter such a market with a new business venture might not be well-received by investors.

Conclusion

The retail market for Scottish-themed goods in Canada is already saturated, making it difficult for new ventures to gain traction. The tight regulations surrounding liquor sales, combined with declining sales in the spirits category, further hinder the potential success of any new business aimed at selling Scottish whiskey or related products. Investors are unlikely to find such a business plan attractive, given the current market conditions.

For most Canadians, purchasing Scottish whiskey or related products can be easily done through existing retail channels, making it challenging to justify the time and resources needed to establish a new business in this sector.