Appeal over domestic taxes as...

Scotch whisky exports return to growth

David Frost
David Frost: (photo by Terry Murden)

Scotch whisky exports are recovering, with figures for the first six months of this year showing the first volume growth since the first half of 2013.

Global export volume grew by 3.1% over the first half of the year, with the equivalent of 533 million bottles shipped overseas. This compares to 517m in the first half of 2015. 

The customs value of shipments was down slightly by just 1% from £1.71 billion to £1.7bn. This was a much smaller drop than the decline of almost 3% in the first half of 2015, another clear sign of improvement.

The global market for single malt Scotch Whisky continued to grow, with export value increasing by 6% to £431m and volume by 3% to 49m bottles.

Single malts now represent a quarter of total shipment value, with exports more than doubling in value over the last decade. 

Bottled Blended Scotch Whisky continues to represent the lion’s share of exports. While volumes increased by 1% to 362m bottles, export value was down 4% to £1.16bn, which may reflect the growth in single malts.

On a market basis, there were promising signs in the industry’s largest market by value, the United States. Exports increased by 9% in value to £357m, with single malts up 22%, and bottled Blended Scotch Whisky up 6%.

The growth of exports to India also stood out, with value up 28% to £43m.

The SWA argued that the full potential of the Indian market would only be delivered through liberalisation of the 150% basic customs duty.

The new figures cover the first half of 2016 and only one week of the period after the European Union referendum vote.

The SWA pointed to the long-term challenges of defining the UK’s future trading relationship with both the EU single market and other countries. In the short term, however, the weakness of sterling since the Brexit vote is likely to boost export competitiveness.

Glenfiddich whiskyDavid Frost, Scotch Whisky Association chief executive, said:The first half of 2016 was marked by an improving Scotch Whisky export performance, suggesting a strengthening in global consumer demand compared to the last couple of years.

“Scotch exports are well-placed to grow in the future, appealing to consumers in both mature and emerging markets.    

“It is clear, however, that the uncertainties of the Brexit vote will create challenges for exporters and we continue to encourage early clarity on the likely shape of the UK’s future trading relationship with the EU and other countries.

“We are working closely with our members and government to ensure the industry’s trade priorities are well understood, to promote open markets, and to identify opportunities to grow our exports in the future.

“Given the continued international uncertainty, we also look to government to make every effort to put in place a competitive domestic tax and regulatory environment, supporting a key home-grown industry.”


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