Whisky exports have slipped into reverse according to sobering new figures, with the amount shipped to some of the world’s key markets falling back by as much as a quarter.
Shock statistics from trade body the Scotch Whisky Association reveal overall volumes fell by 5% to the equivalent of 1.19 billion 70cl bottles last year, with 11 of the world’s top 20 importing countries now buying less of the spirit.
In value terms export trade was worth a total of £4.27bn to Scotland marking a marginal increase of just 1%, but enough to take the industry to a new record figure.
The news marks a complete turnaround for one of Scotland and the UK’s most important products, and comes in sharp contrast to 2011 when export volumes rose by a dizzying 19% and overall values jumped 23%.
The SWA said the statistics revealed changes in the market as more discerning international consumers sought out more expensive premium blends and single malts.
Sales volumes in Japan, France and Spain were particularly badly-hit, falling 27%, 25% and 20% respectively.
The South African and South Korean markets both fell back 15%, with the United Arab Emirates slipping 10% and Thailand dropping back by 7%.
But SWA chief executive Gavin Hewitt said whisky continued to “lead the way” for UK food and drink exports and stressed that the industry remained confident for the future.
“A combination of successful trade negotiations, excellent marketing by producers, growing demand from mature markets, particularly the USA, and the growing middle class in emerging economies helped exports hit a record £4.3bn last year,” he said.
“We deliver a remarkable £135 a second to the UK balance of trade. We are contributing massively to the Government’s wish for an export-led recovery.
“There is confidence in the future of the industry, illustrated by the £2bn capital investment that Scotch whisky producers have committed over the next three to four years.”
He said new distilleries have opened and older ones have been brought back to use to meet rising demand.
The trade association said exports had grown in value by 87% over the last decade, with single malts climbing 190% to £778 million.
Whisky also leads the way for British food and drink in overseas markets, forming about 80% of Scottish food and drink exports and a quarter of UK food and drink exports.
The US remains the top market by value, with exports breaking through the £700m barrier for the first time to reach £758m last year. Demand from the States is expected to increase as consumer confidence grows and drinkers trade up to premium brands.
Growth in Russia was said to have accelerated shipments to Latvia and Estonia by 48% and 28% respectively, with the distribution hub of Singapore growing volumes 7% and direct exports to Taiwan and China increasing at a similar rate.
Orders from India also rose, by 17%, to £62m but the SWA said they continued to be hampered by an “onerous” 150% import tariff, and continued to call for a successful outcome to ongoing free trade agreement negotiations between the European Union and India.
South American markets in Colombia and Peru were boosted as a result of similar agreements, while trade with Central America is expected to improve once further association agreements have been ratified.
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