After an absence of almost 40 years, Chivas Regal has returned to the Lebanese market. But the whisky that was once the by-word for sophisticated drinking is now having to slug it out with the lesser brands in promotion wars fought in the aisles of Lebanon’s supermarkets.
Sales Manager Isabelle Dahan said Chivas intends to become a major market player within three years. What that effectively means is that it hopes to overtake Johnnie Walker Black Label as the market leader – an ambitious undertaking since Black Label currently controls 70% of the deluxe whiskey market and sells for roughly $2 less. The remaining 30% is currently split between Dewar’s Ancestor’s (15%) and a handful of other brands, such as Dimple’s.
Naji Hammoudeh, business manager for KFF Food & Beverage, which distributes Dewar’s, said he expected Chivas to gain a 20% to 30% share of the deluxe market within two to three years. “The domination of Black Label will be significantly reduced,” he predicted. Black Label distributors Diageo didn’t comment.
Chivas Advertising Director Carla Zoghby refused to reveal the amount of the brand’s advertising budget. Dahan declined to reveal sales since the product’s relaunch at the beginning of August, but she said Chivas was being sold “everywhere,” even in corner shops.
Chivas is being promoted through a widespread billboard campaign, as well as in newspapers, magazines and cinemas. Female promoters have also been positioned at various points-of-sale, armed with brochures. So far, Chivas distributors NEXTY are not offering promotional gifts. But, Dahan conceded, they may.
Zoghby dismissed the suggestion that billboard advertising might damage Chivas’ deluxe brand image. “Chivas is a legend,” she stated. At the same time, Dahan acknowledged that below-the-line promotion was never good for brand image, but said that in a market in which other players had embraced the practice, Chivas had no choice but to follow suit.
