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‘Concerning underlying trends’ in whisky sales

Scotch Whisky Association chief executive Karen Betts has toasted the rising value of Scotch whisky exports.
Scotch Whisky Association chief executive Karen Betts has toasted the rising value of Scotch whisky exports.

The value of Scotch whisky exports increased in the first half of this year, despite a drop in the number of bottles sent abroad.

Whisky exports rose in value by 3.4% to £1.8 billion during the period according to figures published by the Scotch Whisky Association.

Overall, the volume of whisky shipped overseas was down 2% to 528 million bottles despite favourable exchange rates.

The lower volume and higher value was partly as result of a shift to single malts, which now make up more than a quarter of the value of all Scotch shipped overseas.

The USA, followed by France and Singapore, were the most valuable export markets.

Karen Betts, Scotch Whisky Association chief executive said the increase in export value was “great news” but said the figures masked “concerning underlying trends”.

She called for more Government support of the industry and lower duty rates.

Ms Betts said: “The value of exports is up but the volume is down.

“With the changes Brexit will bring to the way the industry operates and trades, we need the support of the UK Government at home and overseas if we are to grasp the opportunities and keep this international success story going.

“Overseas demand for our quality product requires investment by the industry in the UK and that needs government support.

“A strong domestic platform for growth is vital and the Chancellor could take a step in the right direction in next month’s Budget by cutting the tax on an average priced bottle of Scotch from the staggering level of 80%.”

Scotch remains Britain’s biggest food and drink export, making up almost a fifth of the sector’s overseas shipments.

Recent figures show that the UK market has shrunk as excise duty has increased, with a near 4% hike in the March Budget seeing Scotch sales fall by a million bottles in the first half of 2017.

Single malts exports were up 7% to £479m in the first six months of the year.

In the USA total Scotch exports were up 8.6% to £388m and single malts jumped 14% to £123m.

Scotch exports to many other mature and emerging markets increased.

There was a marked return to growth in China – up 45% to £27m as the country’s economy grows – and exports to Japan expanded 19% to £43m.

The EU remained the biggest regional destination for Scotch with the value of exports up 4% to £559m, almost a third of the total. The top European markets were France, Germany and Spain.

rmclaren@thecourier.co.uk