Global thirst for Scotch

Karen Betts, CEO of the Scotch Whisky Association, talks to Business Matters about the state of a multi-billion global industry

Q What is the SWA’S main role?

The SWA is the Scotch Whisky industry’s trade body.

Our job is to ensure Scotch Whisky operates in the best possible global business environment, from production to sales, to help ensure that Scotch continues to succeed as the world’s premier whisky.

We do this in a number of ways, from the legal protection of Scotch Whisky, to taking down trade barriers abroad and working for a competitive tax and regulatory environment here at home.

Q In the past SWA has campaigned against trade barriers. Does the SWA see Brexit as a threat or opportunity?

While Brexit comes with its challenges, it also presents opportunities around the world, including to grow Scotch Whisky sales in important markets like India, China and Brazil.

But in the short-term, we need to ensure smooth excise and customs procedures for exports to the EU, maintain robust legal protection for Scotch Whisky as a geographical indication, and ensure that we continue to have access to the benefits of current EU trade deals with markets important to us, such as South Korea

Q What is the SWA’S view on the current rate of excise duty in the UK?

Tax on spirits in the UK is very high, the fourth highest rate in the European Union.

Readers may be surprised to learn that £4 in every £5 spent on Scotch goes straight to the Treasury. So the UK Government’s decision to freeze excise in last year’s budget was welcome.

This year, we’ll be pressing again for a more competitive rate of excise duty, which we believe will deliver more revenues to the government and also underscore government support for an important UK manufacturing industry, one which accounts for £4.37bn in exports and supports tens of thousands of jobs, including over 7,000 in rural areas of Scotland.

Q What more would you like to see done to promote whisky abroad?

Scotch Whisky producers know their markets and consumers very well, and do a fantastic job of promoting Scotch overseas.

Initiatives like ‘Scotland is NOW’ and the GREAT campaign are a great way too of introducing people to Scotland’s national drink and encouraging them to visit the UK.

We want to be at the heart of these campaigns.

Q Is Scotch more popular than ever or is it being challenged by whisky made in other countries like Japan and America?

Scotch Whisky is the world’s undisputed premier whisky, celebrated for its heritage, craft, and quality, and more Scotch Whisky is enjoyed across the world than American, Canadian and Irish Whiskies combined.

The value of the industry’s most recent exports were our highest on record and 39 bottles of Scotch are exported every second.

That said, the world of whisky is very competitive, and we must always ensure that Scotch stays one step ahead.

Q Tell us about the SWA’S environmental strategy and how is this helping to future-proof the industry?

Sustainability is an incredibly important issue and the industry takes it extremely seriously.

Scotch Whisky is made from natural resources, and it’s in our interests to protect these carefully.

Earlier this year, we were delighted to announce that the industry had met its target for non-fossil fuel use four years ahead of schedule, with the industry now sourcing over 20% of energy use from environmentally sustainable sources, up from just 3% in 2008.

We are also making real progress in increasing the recycled content of product packaging and reducing our net water usage.

“While Brexit comes with its challenges, it also presents opportunities around the world to grow Scotch Whisky sales

KAREN BETTS