Indigenous whiskey industry buoyant but council urges cool heads

Any new tariffs would coincide with a period of strong growth for the indigenous US whiskey industry.

Such is the demand for American rivals to Scottish whisky imports that some of the world’s biggest drink firms, including companies more traditionally associated with Scotch, have been enthusiastic to invest in the market.

Just last month, Pernod Ricard – the French group behind a raft of Scotch brands, including Chivas Regal, The Glenlivet and Ballantine’s – announced it was adding Kentucky bourbon Rabbit Hole to its drink range.

Edrington has thrown its marketing and distribution might behind a brand of US whiskey made by fourthgeneration cattle ranchers.

Wyoming Whiskey is now part of Edringtons’ portfolio, which also includes The Macallan, Highland Park, The Glenrothes and The Famous Grouse Scotch whiskies.

Glasgow-based Edrington acquired a minority stake in the US business, saying the move allowed it to expand into one of the fastest-growing premium spirit categories in the US.

According to the Distilled Spirits Council of the United States (DSCUS), which represents leading drink producers and marketers, American whiskey has enjoyed a resurgence in recent years.

Last year, more than 24 million nine-litre cases of American whiskey was sold in the US, generating in excess of £2.8 billion in revenue for distillers.

DSCUS said yesterday it was opposed to tit-fortat drink tariffs, which could have “numerous unintended negative consequences” on US jobs, consumers and exports to the EU.

American whiskey exports to the EU – including sales of brands Jack Daniels and Jim Beam – have declined by 18% since the imposition of tariffs by Brussels more than a year ago, the organisation added.