Scotched... how whisky industry lost £1BILLION in single year
IT is one of the most lucrative industries in Scotland.
But last year global exports of Scotch whisky fell by more than £1.1billion, according to data released yesterday by the Scotch Whisky Association (SWA).
The export figures are the lowest they have been in a decade, as the impact of Covid-19 and a 25 per cent tariff in the United States hit distillers hard. It all adds up to lost revenue of £3million a day.
The tariffs were introduced in October 2019 by the administration of former president Donald Trump, in retaliation for EU subsidies given to aircraft maker Airbus.
Last year, the value of Scotch exports fell 23 per cent by value to £3.8billion. The number of 70cl bottles exported fell by 13 per cent to the equivalent of 1.14billion.
The value and volume of exports to most of the top ten markets for whisky fell as countries went into lockdown to combat the spread of Covid-19.
The closure of hospitality and travel restrictions affecting airport retail worldwide also meant that export values fell in 70 per cent of Scotch’s global markets when compared with 2019.
Exports to the EU 27, the industry’s largest regional export market, fell by 15 per cent.
However, according to the SWA, it is the continued impact of tariffs on exports of single malt Scotch to
WHISKY collectors from around the world are competing to buy one of the most sought-after bottles of Scotch.
The Macallan 1926 Fine and Rare 60 Year Old has been described as the ‘holy grail’ for collectors and is one of only 14 bottles of its kind.
From the Moray distillery’s famed cask number 263, it has been valued at more than £1million ahead of Perth-based Whisky Auctioneer’s online sale, running until February 22.
‘Grim reminder of challenges’
the US that has caused the most significant losses. The US is its most valuable market, valued at more than £1billion in 2019 and a fifth of worldwide exports.
But last year, exports to the US fell by 32 per cent to £729million, a loss of £340million compared with 2019, accounting for around onethird of global export losses.
SWA chief executive Karen Betts said: ‘These figures are a grim reminder of the challenges faced by distillers. The industry lost ten years of growth in 2020 and it’s going to take some time to build back to a position of strength.’
The industry has ‘now paid over half a billion pounds in tariffs’ she said, adding: ‘What’s so disappointing is the damage being caused by US tariffs. We are calling on the Chancellor to support distillers by reducing our tax bill in the UK.’