Scotch Whisky exports boosted as industry body backs EU membership

Scotch Whisky exports reached £3.86 billion in customs value last year to show signs of recovery after a slight decline in recent years, according to analysis published today.

The Scotch Whisky Association (SWA) said the customs value of overseas sales had fallen 2.4 per cent in 2015 (from £3.95bn in 2014), a slowing from last year’s 7 per cent fall, and putting total export value 56 per cent higher than a decade ago.

The figures also showed that the volume of whisky exports was down by 2.8 per cent to 1.16 billion bottles - the equivalent of 34 bottles being shipped from Scotland every second

The SWA said that Scotch Whisky’s prospects for growth remained strong but that exporters continued to face challenging global economic conditions.

Consumer demand for Single Malt Scotch Whisky continues to be strong, with shipments up to £916.4 million in 2015 (from £914m). Single Malts now account for nearly 25 per cent of the value Scotch Whisky exports in 2015, up from just 18 per cent five years ago.

Blended Scotch Whisky remains important, as the biggest category (£2.77bn), accounting for 72 per cent of the global value of exports, and as the trailblazer for Scotch into new and emerging markets.

Exports to some major markets performed well last year. The USA, the biggest export destination for Scotch, remained steady at £749 million, nearly a fifth of all exports. Japan continued its recovery, up 18 per cent to £76m. There was also growth in a number of exciting emerging markets, with Mexico up 17 per cent to £115m, Turkey up 24 per ecnt to almost £53m and China returning to the Top 20 markets with an increase of 5 per cent to £41m.

In the context of the forthcoming EU referendum, the SWA pointed to the fact that around 40 per cent of the volume of Scotch shipped globally was exported to the European Union last year, underlining the importance of the single market. The SWA has argued that EU membership is vital to growing Scotch Whisky exports, with the EU playing a particularly important role in knocking down trade barriers as it negotiates Free Trade Agreements with third countries.

David Frost, Scotch Whisky Association chief executive, said: “Scotch Whisky exports continue to deliver and the fundamentals for future growth are strong. Whilst the last couple of years have been more difficult, the longer-term picture has been one of increased demand, new investment, and premiumisation.

“Challenges remain, with an uncertain global economy and political uncertainty in some export markets. Continued EU membership will also help to support Scotch Whisky exports to the single market and would leave Scotch well placed to benefit from the lower tariffs and fairer market access that the EU has been able to secure through its negotiation of Free Trade Agreements with countries around the world.”