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Whisky exports hit £90 a second

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Published Date: 01 May 2008
ALREADY Scotland's number one export, Scotch whisky cemented its advantage over its imitators yesterday, with new trade figures which show that overseas sales of the spirit reached record highs last year, earning the UK £90 a second.
The Scotch Whisky Association (SWA) said that both the value and the volume of exports reached historic highs in 2007.

The SWA said shipments of the spirit increased by 14 per cent to a record of £2.8 billion.

Export volume grew 8 per cent, wit
h the equivalent of 1,135 million bottles of Scotch whisky shipped overseas.

Bottled blended whisky exports rose by 15 per cent in shipment value and broke the £2 billion barrier for the first time, while bottled malt exports rose by 11 per cent in value to £454 million.

Tariff reform last year allowed exports to India to rise by 36 per cent in value, and for South Africa the rise was 9 per cent.

The SWA's chairman, Paul Walsh, said: "This record export performance – generating £90 every second for the UK balance of trade – underscores just how important Scotch whisky is to our economy.

"This is all the more impressive given the economic difficulties encountered in certain markets during the second half of 2007 and demonstrates that Scotch whisky's international appeal can militate against individual market or regional fluctuations."

In 2006, government figures showed that Scotch whisky was Scotland's number one export, excluding gas and oil, representing 12 per cent of exports.

But the figures come in the light of increasing critical acclaim for other nations' versions of our national drink.

For the past two years, two Japanese whiskies have been named the best malt in the world by a panel of experts.

But Charles MacLean, author and expert on whisky, said Scotch whisky producers had little to worry from such plaudits. "The Japanese for some reason do not make much of an effort to export it," he said. "In fact they do little to sell it in their own country.

"In comparison with Japan, Canada, American whiskies, Scotland is by far and away the biggest style of whisky in the world."

Mr MacLean said, however, that in strict sales terms, Indian whiskey represented close to 83 per cent of all whisky sold, though almost all in India, with just 2 per cent imported at exorbitant rates.

Mr MacLean said that the next big thing for Scotch whisky was the magic trio of the emerging markets in China, India and Russia, where there was a burgeoning taste, particularly for "super-deluxe" blended whiskies. However, he cautioned that they could prove tricky for single malts: "If you're a whisky maker and you are looking at the billions of barrels you have, then the older ones are going to go into the super-deluxe blends.

"The brewers like Diageo have said that they are ring-fencing supplies for single malt bottling, so that there won't be a shortage, but there are independent bottlers who having difficulty finding casks to buy."

He added, however, that the single malt market had risen from 5 per cent to 7.3 per cent, though in cash terms its value was a lot higher.

Jim Mather, the enterprise minister, said the figures underlined the importance of the industry to Scotland's economy.

But he warned that the Treasury's decision at the last Budget to raise duty on spirits threatened the ability of Scottish companies to export their product.

He said: "By increasing duty on everything from the cheapest cider to the highest-quality malt, the Chancellor did nothing in his Budget to get to the heart of the country's cultural problem with alcohol."

SINGLE MALTS HIT THE SPOT

THE export success of Scotch whisky can be traced back to the 1890s, when the likes of Dewars, Buchanan and Walkers used the most canny of marketing tools, the British Empire, to sell their blends.

"The Scots who were working around the world took their drink with them as a piece of home," said the author Charles MacLean.

Up until the Second World War, the biggest market was Australia, but this was superseded by America, he explained.

Post-war Europe embraced Scotch as a high-quality luxury item during a period of austerity, which carried it well into the 70s.

Unfortunately, at the end of the decade that style forgot, fashion swayed away from "brown" spirits towards clear ones, leaving the industry's projected sales in tatters and an unwanted "whisky loch" of single malt on their hands.

However, this expanse of spirit has proved to be one of the rocks on which the industries' current resurgence was built.

During the late 1980s, companies began to market the unwanted spirits – previously used in blends – as desirable in themselves, leading to the burgeoning luxury market for single malts that exists today.





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  • Last Updated: 30 April 2008 10:19 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Whisky
 
1

boudica,

Glasgow 01/05/2008 01:27:45
So much for the 55p rise in tax ..destroying Scotlands Whiskey Industry ...So where all the Natz that were shouting Westminster is destroying Scotland ..we are doing awfully well for a Country supposedly being brought to its knees..By the Big Boogieman down south ..
2

C.U. Jimmy,

01/05/2008 02:30:04
£90 a second? Outrageous! It's time for a windfall tax on these obscene profits.
3

Brian M,

Edinburgh 01/05/2008 06:34:48
#1 the figures are for exports and for 2007, numpty.

The 55p rise in tax is on domestic sales and only applies from this March this year. We will have to wait at least a year to see how it affects domestic sales.
4

Duncan in Edinburgh,

01/05/2008 08:29:39
#3 Do you really think that the industry will not be profitable when those results come in? No-one in the Scotch Whisky industry does! Domestic sales are increasingly irrelevant to the profitability of this industry.
5

scottish person,

paisley 01/05/2008 08:40:20
#1 Dry up.
Why do the Barnet people not include whisky in their formula. Instead of calling Scots bleeding hearts. How would £90 per second improve the Independence argument.
6

Calum Crubag,

01/05/2008 08:51:11
Naidheachd mhath!

#6 - Agree. This is another reason why independence makes sense. Here is a goldmine, that many other small nations do not have, that brings in £billions to Scotland and provides work in rural areas. But, the progits go London where they are wasted on Trident and Iraq etc...
7

Calum Crubag,

01/05/2008 08:51:55
profits, that is.

slàinte mhath is là math dhuibh!
8

Calum Crubag,

01/05/2008 08:52:50
#1 - learn to spell whisky and then we might listen to you.
9

Very Rev Ian Paisley,

Nice to see the strike 01/05/2008 09:27:08
showed the Scottish people that we are an exporter of oil contrary to general opinion.

Independence now
10

donald,

glasgow 01/05/2008 09:39:09
Taxed by London and owned by foreigners. Wouldn't it be nice to see that money spent here in Scotland?
11

Duncan in Edinburgh,

01/05/2008 09:48:27
#12 This is an argument of wilful ignorance. Where do you think those taxes are spent? Where do you think the block grant comes from? We pay taxes, our government spends them.
12

Saoghal Beag,

01/05/2008 11:53:11
13 too much of our tax revenue spent on the london olympics and iraq war. we get our scraps back. our tax revenue is the biggest barrier to independence.
13

John Blackley,

Florida 01/05/2008 13:47:18
Y'know, as soon as I saw the headline I could pretty-much write most of the comments myself.

"Independence now!" "Trident and Iraq", "Olympics and Iraq", "London", "foreigners".

Should I be the first one to congratulation the whisky industry and say that it's one reason I'm proud to be a Scot?

By the way, #5, danielrober, Scotch and Coke?
14

John Blackley,

Florida 01/05/2008 13:47:43
I do beg your pardon - "congratulate"
15

John Blackley,

Florida 01/05/2008 18:11:31
#17 danielrober. I wasn;t taking you to mean Bolivian marching powder but I appreciate you taking the time to point that out.

But still. Scotch and Coke????
16

John Blackley,

Florida 01/05/2008 18:11:32
#17 danielrober. I wasn;t taking you to mean Bolivian marching powder but I appreciate you taking the time to point that out.

But still. Scotch and Coke????
17

ExpatBackinScotland,

Carnoustie 01/05/2008 18:38:33
The truth is finally coming out....

First the Oil, being worth 50million a day in grangemouth....amounting to 18 billion out of one pipeline....and there are at least two more...of which 90% of the payload is on scottish terriotory....now the whisky values come out. well folks, I make that 20billion rightfully scotlands that we dont ever get back. I think the answer to the question of "should we be independent" is a big texan style "hell yeah". we owe it to our children to make scotland better and we clearly have the ability if we keep the money ourselves.
18

Beth Boyle,

New York State 01/05/2008 21:04:00
Maybe we should switch to whiskey powered cars!
19

weeshooie1,

Wollongong 01/05/2008 23:51:22
Beth Boyle #21,

'whiskey' yes, but not Whisky :0)

 

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