Welsh whisky cracks US as Scotch suffers

IT is perhaps Scotland’s most famous export and has a reputation for being unsurpassed in quality.

But now distilleries in England and Wales are taking advantage of the US trade war on single malt Scotch.

Tariffs imposed 12 months ago have seen the price of Scotch whisky rise 25 per cent in the US. As a result, sales have crashed by £400million.

But the punishing charges do not apply to whiskies produced south of the Border, and Penderyn distillery in the Brecon Beacons is one of the relative newcomers claiming to have seen US sales rise.

Whisky expert Jim Murray said: ‘In recent years, Americans have begun falling back in love with bourbon and rye at Scotch’s expense. However, they also know a bargain when they see one and they will certainly notice quality English and Welsh whiskies if they are competitively priced.’

The whisky industry is a victim of a tit-fortat trade war between the US and the EU.

Brussels imposed tariffs on imports of American whiskey as part of a dispute over metal prices. Washington then targeted single malt Scotch and Irish whiskies.

The tariffs will not lift when the UK cuts ties with Brussels on January 1 and the US is reportedly considering extending them to blended products as well.

Penderyn seized the opportunity to launch its Red Dragon single malt in the US. Stephen Davies, chief executive of the Welsh Whisky Company which owns the distillery, said: ‘It’s a slightly muddled picture because of Covid, but I’ve no doubt we’ve been able to hold our prices and it’s a competitive market, so it’s made a difference for us.’

And international sales are also rising for the English Whisky Co. in Norfolk.

A spokesman for the Scotch Whisky Association said: ‘The longer the tariff remains in place, the greater the impact on many Scotch whisky companies’ sales and export plans in the US.’

A UK Government spokesman said: ‘We are fighting incredibly hard on this issue.’