As the spirits industry navigates shifting consumer trends and evolving market landscapes, staying agile has become essential for growth, even for a company that is 137 years old. I sat down with Paul Basford, President of William Grant & Sons USA, to discuss how this family-owned, independent company famous for brands such as Glenfiddich, The Balvenie, Hendrick’s Gin, and Milagro Tequila has adapted to change. In our discussion, Basford talks about their data-driven approach to regional shifts, the company’s commitment to core brands, and strategies for cultivating a strong, future-focused team culture.
Dave Knox: Let’s start with the William Grant & Sons story. What’s the quick version of the company’s history that brought it to where it is today?
Paul Basford: I’ll try to keep it brief, though there’s much to tell about our 137-year legacy. William Grant & Sons was founded in 1887 by William Grant himself. With nine children, he decided to build a distillery in the Valley of the Deer in Speyside, Scotland—what we now know as Glenfiddich, which means “Valley of the Deer.” On December 25, 1887, Glenfiddich released its first spirit, marking the beginning of an enduring legacy.
William Grant didn’t stop there. In 1892, he built a second distillery, The Balvenie, just nearby. Named after “Village of Luck,” The Balvenie joined Glenfiddich as the foundation of our business, with both distilleries still in Dufftown today. The company remains a family-owned, independent business now in its fifth generation. Known for pioneering spirit and innovation, we helped establish the single malt category in the U.S. in the 1960s with Glenfiddich and introduced The Balvenie as a brand renowned for craft and quality.
Over time, our portfolio has grown to about 20 global brands. We’ve added notable names like Hendrick’s Gin in 1999, Milagro Tequila shortly after, and acquisitions such as Tullamore D.E.W. Irish Whiskey and Reyka Vodka. These premium and ultra-premium brands enable us to offer something for nearly every category and occasion. This expansion is rooted in a belief that our heritage brands, Glenfiddich and The Balvenie, are the bedrock of our company, but we remain committed to innovation where it aligns with our values. Today, the U.S. market is vital, accounting for 35% of our business, and our portfolio’s premium nature drives strong growth here.
Knox: For over a century, Glenfiddich and The Balvenie have been foundational. How have these brands informed your approach to adjacent categories and new innovations?
Basford: Glenfiddich and The Balvenie are indeed the core of our business. We maintain a “single malt first” approach, constantly pushing these brands forward while innovating to keep them relevant. Quality and craftsmanship have always been our priorities. For instance, we’ve embraced cask finishing, new age profiles, and refreshed packaging. This year, we released a Glenfiddich Grand Chateau 31 Year Old, finished in Bordeaux wine casks, with artwork by a globally acclaimed artist André Saraiva —bridging tradition with modern creativity.
Beyond single malts, we prioritize our brands with a clear structure. Hendrick’s Gin, for example, leads the super-premium gin category with over a 60% share, thanks to its distinct and creative identity. Milagro Tequila is poised to become our largest brand by volume, reflecting the rapid growth of both the tequila market and the brand itself. We’ve successfully developed several category leaders while introducing new products that resonate with consumers.
In the U.S., we work closely with our distributors, whose dedication to our priorities has fueled our growth to 35% of the group’s business. We also have the advantage of deep industry knowledge and an extensive stock of aged whiskies, which allows us to offer luxury products with unique finishes and a rich, authentic base.
Knox: When managing a diverse portfolio of brands, there’s a natural tension between expanding existing brands versus bringing in new ones. How do you balance expanding within a brand’s category, like tequila or gin, versus introducing a new player?
Basford: That’s an essential question, and it’s a constant balancing act. Fortunately, we’re in a strong position with our core brands, so we don’t always need to introduce new innovations. We have significant potential within our existing portfolio—Hendrick’s Gin, for instance, still has room to grow, as do our single malts. Our decisions around innovation often align closely with market trends and consumer behavior.
Right now, we’re seeing an overall decline in alcohol consumption. After the COVID-related spike, drinking patterns have shifted, and people are drinking less than they did during lockdowns. In this environment, our strategy is to double down on our core brands rather than pursuing aggressive innovation. We’re focused on reinforcing and reinvesting in the strengths of our main brands to sustain them through these tougher market conditions.
We’re also keeping an eye on adjacent spaces, like non-alcoholic options, given evolving consumption trends. But fundamentally, this period calls for fortifying our core rather than launching new ventures. Even though overall drinking is down, consumers—especially younger ones—are prioritizing quality over quantity. They’re choosing higher-quality, premium options, which aligns perfectly with William Grant’s positioning. This shift gives us confidence to focus on our existing portfolio, knowing it resonates well with current preferences.
Knox: You mentioned that the U.S. market makes up about 35% of William Grant’s global sales. How has the portfolio mix evolved in the U.S. compared to other markets?
Basford: Over the past three to five years, we’ve seen notable shifts in the U.S. portfolio mix, with tequila being a standout. The U.S. has led a true “tequila boom” that hasn’t been mirrored in most other markets. This surge aligns with the strong cocktail culture here, where the Margarita reigns as the most popular cocktail. The cocktail orientation in the U.S. has created an environment where tequila shines, positioning Milagro Tequila well. Our brand embraces a vibrant, authentic agave character, positioning it as the “sunny side” of tequila—a stark contrast to the darker, often somber packaging and branding that dominates the category. This differentiation has been a real asset.
Beyond tequila, the U.S. also shows sustained demand for super-premium gin, which isn’t as prominent globally. Hendrick’s Gin, our flagship gin, continues to thrive here. Single malts have had strong growth in the U.S. as well, though tightening budgets have slowed consumption slightly. Even so, Glenfiddich and The Balvenie are performing well, with both brands gaining market share and ranking among the top six single malts in the U.S. Glenfiddich, of course, holds the title of the world’s best-selling single malt, with significant presence worldwide.
In short, our U.S. portfolio mix reflects the unique consumer trends here, with super-premium gin and tequila standing out as key differentiators from our global mix.
Knox: Spirits marketing trends fluctuate constantly. How do you approach the decision to go on the offensive and push a category versus adopting a defensive stance to protect market share and heritage?
Basford: The current U.S. spirits market is indeed volatile, with most categories seeing declines, except for a few, like American whiskey. Post-COVID, markets are normalizing, and we’re also seeing rapid growth in ready-to-drink (RTD) products, such as seltzers. In this environment, we’re focused on solidifying our existing positions. Single malts, for instance, have been performing well, so we’re investing heavily there.
At William Grant, one of our defining strategies is to over-invest when times are challenging. When the market dips or P&L is under pressure, we lean into investment and innovation, which has been part of our DNA for decades. For example, this year, we’ve expanded our Tullamore D.E.W. Irish whiskey line with a new Honey variant, launched in February. This was a strategic move to capitalize on Irish whiskey’s growth and appeal to consumers looking for unique flavor profiles.
Each category has its own trajectory, and we adapt based on those specifics. Consumers now prioritize quality over quantity, seeking premium options even when spending is down. That’s where our portfolio shines, offering products that people view as affordable luxuries during uncertain times.
This year, we also launched Milagro Cristalino, an ultra-smooth, clear Añejo tequila filtered through charcoal. It’s a standout in the tequila category, which continues to thrive in the U.S. We’ve focused our innovation on areas with clear potential, like single malts, Irish whiskey, and super-premium tequila, rather than spreading resources thinly across every brand.
Knox: I’m intrigued by William Grant’s unique approach to portfolio structure. Rather than organizing by category—whiskey, tequila, gin—you classify brands as core, launch, local, or innovation brands. What drives this choice to group by brand role rather than by product type?
Basford: Our categorization is all about the value each brand delivers to the business. Think of it as a trifecta: brand scale, consumer opportunity, and margin impact. The brands at the forefront—like Glenfiddich, The Balvenie, and Hendrick’s Gin—meet all three criteria. They’re essential due to their size, their alignment with our heritage, and ongoing growth potential. Protecting these core brands is crucial, as they lead in market share and represent the history and strength of William Grant.
After the core, we consider emerging categories. For instance, Tullamore D.E.W. in Irish whiskey and Milagro in tequila are key players in the U.S., where demand for both categories continues to rise. Our categorization isn’t identical across countries; not every market carries the full portfolio, but in the U.S., we typically have around 15 or 16 of our 20 global brands.
The portfolio also includes a focus on innovation and emerging trends. We recently introduced Silent Pool Gin, an ultra-premium London Dry gin, and House of Hazelwood, our ancient reserve scotch. Additionally, we’re exploring categories outside traditional spirits, like non-alcoholic options, though we approach new categories carefully and ensure alignment with our heritage.
This brand-role approach allows for a global consistency that enhances collaboration. We receive strong global support for marketing assets, which keeps our brand-building efforts unified across markets. It’s a strategy that respects our core strengths while enabling flexibility to adapt in fast-evolving segments.
Knox: You’ve set an ambitious target to double the business within the next five years. If everything goes as planned, what does that mean for William Grant & Sons overall?
Basford: It’s a big, bold and brash plan, especially for the U.S., where we focus on pioneering and innovative growth strategies. Globally, our vision is to become the best drinks company in the world. Here in the U.S., that translates into becoming the industry leader by expanding both our core brands and a range of emerging challenger brands.
The core five brands—Glenfiddich, The Balvenie, Hendrick’s Gin, Tullamore D.E.W., and Milagro Tequila—remain central, but we’re also elevating secondary brands like Reyka Vodka, Monkey Shoulder, and Hudson Whiskey. These brands will receive increased investment to create a balanced portfolio and amplify growth.
Our strategy for the U.S. includes significant over-investment. The U.S. is prioritized for global resources, alongside other key markets like China and India, because of its potential. It’s an exciting time; we can feel the energy and momentum building. We’ve doubled our business over the past five years, and we’re confident we can do it again with a focused, culturally-driven approach. There’s a palpable sense of possibility among our team, and we’re ready to take on this journey toward market leadership.
Knox: You’ve mentioned cultural transformation as a key focus. With the volatility in spirits categories, how do you keep your team aligned toward a common direction and spark the culture to achieve that?
Basford: That alignment and cultural shift have been priorities since I joined three years ago. Establishing a clear direction for the team is essential—something like a lighthouse or a North Star. We’ve set an ambitious goal: to double our business and be the best drinks company in the U.S. But it’s not just about following the typical path for alcoholic beverages; we’re learning from other sectors as well.
However, the real catalyst for change is the people. To achieve our vision, we’ve cultivated a transparent, open, and proactive culture. We operate with a “no surprises” approach and involve our team in daily decisions and long-term planning, giving them a true stake in the business. When someone brings forward an idea, we listen and take it seriously. We also recognize and reward contributions with monthly recognition, celebrating individual and team wins.
That openness fuels motivation. When people know where the organization is headed, feel empowered to contribute, and are recognized for their achievements, it creates a vibrant, forward-focused work environment. This culture, combined with the excitement of working with iconic brands, has driven a significant transformation. I couldn’t be prouder of the team and the strides we’ve made together; their efforts have been the true engine of change.
Knox: With the industry in constant flux, how do you keep your team attuned to trends, and especially engaged in a market that’s so geographically diverse as the United States?
Basford: Staying on top of change demands that we dig deep into data, tracking the details and shifts as they happen. The spirits market is evolving weekly—new brands are constantly appearing. But beyond the brand level, the regional dynamics have shifted dramatically, particularly post-COVID. We’re seeing migration from major cities into states that traditionally didn’t have strong demand for premium alcohol but now show significant growth. Places like South Carolina, North Carolina, Ohio, Arizona, and Utah, for instance, are now on the map in a way they weren’t in 2019.
These shifts are being driven by consumers who bring their premium tastes to new locations and expect to find brands like Hendrick’s Gin, Glenfiddich, and The Balvenie there. To stay responsive, we’ve reoriented our strategy around these emerging markets—allocating resources, adjusting distribution, and tailoring our marketing spend and team placements accordingly.
Data is critical here. By closely analyzing trends in demographics, population movements, and economic factors, we can identify and seize new opportunities. Our dedicated data team helps us understand and act on these insights, allowing us to double down where the demand is growing. It’s about leveraging data to lead us to where the opportunities are and to make sure we’re allocating efforts effectively in each unique market.