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Sales decline slowing

Whisky exports show signs of return to growth

David Frost with John SwinneyScotch Whisky exports are showing signs of recovery after the slump in recent years.

Sales of £3.86 billion last year were 2.4% down on 2014, but this compared to a 7% fall in the previous year.

Total export value is still 56% higher than a decade ago.

The Scotch Whisky Association (SWA), which today published a new report looking at Scotch Whisky exports in depth, said that prospects for growth remained strong but that exporters continued to face challenging global economic conditions.

The volume of Scotch exports was down by 2.8% last year to 1.16 billion bottles (from 1.19bn).  That represented 34 bottles of whisky every second being shipped from Scotland.

Consumer demand for Single Malt Scotch Whisky continues to be strong, with shipments up to £916.4 million in 2015 (from £914m). Single Malts now account for nearly 25% of the value Scotch Whisky exports in 2015, up from just 18% five years ago.

Blended Scotch Whisky remains important, as the biggest category (£2.77bn), accounting for 72% of the global value of exports, and as the trailblazer for Scotch into new and emerging markets.

Exports to some major markets performed well last year. The USA, the biggest export destination for Scotch, remained steady at £749 million, nearly a fifth of all exports.  Japan continued its recovery, up 18% to £76m. There was also growth in a number of exciting emerging markets, with Mexico up 17% to £115m, Turkey up 24% to almost £53m and China returning to the Top 20 markets with an increase of 5% to £41m.

In the context of the forthcoming EU referendum, the SWA pointed to the fact that around 40% of the volume of Scotch shipped globally was exported to the European Union last year, underlining the importance of the single market.

The SWA has argued that EU membership is vital to growing Scotch Whisky exports, with the EU playing a particularly important role in knocking down trade barriers as it negotiates Free Trade Agreements with third countries.

David Frost, SWA chief executive (pictured above left with John Swinney), said: “Scotch Whisky exports continue to deliver and the fundamentals for future growth are strong.  Whilst the last couple of years have been more difficult, the longer-term picture has been one of increased demand, new investment, and premiumisation.

“Challenges remain, with an uncertain global economy and political uncertainty in some export markets.   Continued EU membership will also help to support Scotch Whisky exports to the single market and would leave Scotch well placed to benefit from the lower tariffs and fairer market access that the EU has been able to secure through its negotiation of Free Trade Agreements with countries around the world.”

 Photo: by Terry Murden

VALUE

2015

2014

% change

(£GBP million)

 

 

 

1

USA

£749 m

£750 m

0%

2

France

£436 m

£445 m

-2%

3

Singapore

£211 m

£201 m

5%

4

Taiwan

£182 m

£197 m

-8%

5

Spain

£152 m

£166 m

-8%

6

Germany

£145 m

£141 m

3%

7

UAE

£123 m

£116 m

6%

8

South Africa

£122 m

£136 m

-10%

9

Mexico

£115 m

£99 m

16%

10

South Korea

£99 m

£117 m

-15%

11

Australia

£90 m

£84 m

8%

12

India

£85 m

£89 m

-5%

13

Canada

£77 m

£67 m

15%

14

Japan

£76 m

£64 m

18%

15

Netherlands

£74 m

£57 m

30%

16

Turkey

£64 m

£52 m

24%

17

Brazil

£56 m

£80 m

-30%

18

Poland

£53 m

£44 m

20%

19

Latvia

£51 m

£75 m

-33%

20

China

£41 m

£39 m

5%

VOLUME

2015

2014

% change

m 70cl bottles

 

 

 

1

France

176.2 m

184.1 m

-4.3%

2

USA

116.4 m

118.6 m

-1.8%

3

India

79.4 m

79.7 m

-0.3%

4

Spain

58.3 m

58.7 m

-0.8%

5

Mexico

57.1 m

42.8 m

33.5%

6

South Africa

50.4 m

52.8 m

-4.6%

7

Germany

46.9 m

49.8 m

-5.8%

8

Brazil

46.5 m

58.1 m

-19.9%

9

Singapore

36.7 m

39.7 m

-7.7%

10

Australia

30.3 m

27.0 m

12.2%

11

UAE

27.0 m

26.9 m

0.2%

12

Japan

24.7 m

18.1 m

36.3%

13

Poland

24.5 m

18.2 m

34.4%

14

Thailand

22.1 m

27.0 m

-18.0%

15

Taiwan

22.0 m

24.1 m

-8.6%

16

Netherlands

20.8 m

18.2 m

14.6%

17

South Korea

17.5 m

22.8 m

-23.0%

18

Latvia

16.2 m

18.7 m

-13.5%

19

Italy

16.0 m

15.4 m

3.5%

20

Turkey

15.5 m

12.4 m

25.2%



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