Interview: Kavalan’s Y.T. Lee on redefining the travel retail experience with premium gifting

From the debut of its Classic Single Malt Whisky in 2008, Taiwan’s Kavalan Distillery has steadily expanded its range, making its mark on the global whisky scene.

Having pioneered single malt whisky production in Yilan County since 2005, the distillery has been showcasing Taiwan’s natural resources and distillation expertise to a global audience.

Its remarkable range of exclusive expressions and standout design reflecting local cultural heritage have helped the brand become a fixture on duty-free shelves.

In this exclusive interview with The Moodie Davitt Report, Kavalan CEO Y.T. Lee discusses the company’s expansion in the channel and highlights the important role of gifting in its premium travel retail offerings.

The global appetite for new-world whiskies has seen remarkable growth, with Taiwanese distiller Kavalan standing out as among the leading brands.

Part of the King Car Group, founded by Tien-Tsai Lee, Kavalan’s popularity notably surged in South Korea after being featured by Lotte Duty Free for the first time in domestic duty-free in 2017. The travel retailer noted the brand’s popularity, with its sales of Kavalan expressions increasing by over +3,580% in 2023.

This surge was fuelled by the rise of pop culture and a growing trend among younger consumers to explore whiskies from non-traditional regions. Celebrity endorsements have also played a key role, embedding Kavalan into the local cultural landscape.

In travel retail, the brand has made significant strides through strategic partnerships with key retailers. The brand is set to debut its flagship store within Lotte Duty Free’s downtown Seoul location and roll out exclusive Kavalan products.

With strong distributor partnerships, Kavalan is expanding to key airports, including Singapore Changi, Melbourne, Guam International and Hanoi Nội Bài, offering exclusive duty-free editions to global travellers.

Kavalan CEO Y. T. Lee said: “Our partnership with Lotte Duty Free, including an upcoming flagship store, strengthens our position in this market and lays a solid foundation for further growth.”

Looking beyond Asia, Lee is leveraging travel retail as a crucial element in Kavalan’s strategy to capture a wider consumer base.

Lee said: “Travel retail is an essential part of our growth strategy, especially as global travel surpasses pre-pandemic levels. It allows us to connect with international consumers and expand our reach beyond Asia, particularly in the USA and the Middle East, where we see strong potential.

“We focus on creating duty-free exclusives that reflect local preferences and using this channel to introduce new flavours that resonate with travellers from diverse cultures. By doing so, we not only share Taiwan’s whisky heritage but also create memorable experiences for travellers to take home.”

Kavalan has become popular for its tropical fruit profile since the release of its debut expression in 2008, yet its commitment to innovation has allowed it to keep pace with evolving consumer preferences. The release of the Palo Cortado Sherry Cask Whisky last year highlighted Kavalan’s efforts to diversify its sherry cask offerings, a rarity in the whisky category.

The brand’s travel-exclusive editions, building on the success of the Artist Series, offer fresh takes on timeless flavours.

Lee said: “By addressing various price points, we also cater to both everyday enjoyment and premium gifting, ensuring we remain responsive to changing market dynamics.”

With gifting increasingly shaping travel retail experiences, Kavalan has made it a key element of its growth strategy within the channel.

Lee said: “Many whisky enthusiasts visit Taiwan specifically to acquire our limited editions, and we’ve extended this experience globally with travel-exclusive products. These offerings provide both rarity and collectability, making Kavalan a compelling choice for diverse gifting needs.”

Kavalan focuses on creating the “perfect gift”, combining quality, craftsmanship and design. Its packaging blends Taiwan’s cultural heritage with the prestige that defines premium spirits.

Lee added: “Our packaging reflects the essence of Kavalan. Flowing lines and layered textures echo the Snow Mountain Range surrounding our distillery, symbolising the pristine environment and natural resources that shape our whisky. These elements create a strong connection between our whisky and Taiwan’s unique heritage, enhancing its appeal as a premium gift.”

As Kavalan continues to extend its global reach, it remains committed to enhancing its brand experience and product offerings, particularly in travel retail.

Lee said: “We are planning exclusive events in the duty-free channel to highlight Kavalan as a premium gifting choice. These initiatives will include limited-edition gift sets and coordinated digital and physical campaigns, enhancing our visibility in major global travel retail hubs and reinforcing Kavalan’s position as a top-tier gift option.”