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Cheer for Scotch whisky industry

The Scotch Whisky industry has bounced back from a disappointing 2012.
The Scotch Whisky industry has bounced back from a disappointing 2012.

The Scotch Whisky industry has shaken off its hangover after a fall in exports last year.

A total of 1.19 billion bottles of Scotch were exported across the globe in 2012 a 6% fall on the previous year. Figures show the industry is bouncing back and has made a strong start to 2013.

The value of exports between January and June this year rose by 11% to almost £2 billion compared to the first half of 2012, when £1.78bn of whisky was exported.

In terms of volume, some 563 million bottles of Scotch Whisky were exported in the first six months of the year this year, up 9%, or almost 50 million bottles, from the same period in 2012.

This snapshot of export performance in the first half of 2013 reflects growing demand from a wide range of markets against a slowdown during the same period a year earlier.

The value of exports rose by 6% to £4.5bn from £4.2bn in the 12 months up to the end of June.

There was growth in mature markets, such as the US and France, with a welcome return to growth in Spain, alongside increasing demand from emerging economies, such as South Africa and South America.

The US remains the biggest market by value, increasing by 29% to £391m in the first half of 2012. France, the second largest market, saw exports grow by 6% to £199m and Singapore which jumped by 19% to £174m.

There was a 20% decline to £25m in the value of direct exports to China but this was partly offset by the increase in shipments to Singapore, a distribution hub for whisky in Asia, and also reflects consolidation and new pressures against conspicuous consumption in China.

Direct exports to Poland reached £20m and are now almost 10 times the level in 2004 when the country acceded to the European Union. There was also rapid growth in exports to Central and South America.

Trade agreements with a number of countries in Latin America came into force last month and are expected provide a further boost to exports to the region while protecting Scotch whisky’s provenance.

Scotch Whisky Association chief executive Gavin Hewitt said: “While these figures provide a snapshot of what is happening with exports, the industry is confident this expansion will continue.

“Significant new investment in the industry in Scotland by Scotch Whisky producers reflects the belief that growth will be sustainable.

“Scotch Whisky is widely recognised as a quality product and leads the way into new markets for other food and drink exports from the UK.

It continues to be vital for the UK’s export-led recovery. Developments, such as new trade deals, help ensure success will continue.”