Scotch whisky exports plummet 11% in first half of 2014

By Gemma McKenna

Published: 22 September, 2014

Scotch whisky exports have fallen 11% to £1.77 billion in the first half of 2014, compared to the same period last year, with the finger being pointed at "economic headwinds and uncertainty".

David Frost, chief executive of the Scotch Whisky Association Scotch whisky exports fall sharply in first half of 2014Source: Scotch Whisky AssociationDavid Frost, chief executive of the Scotch Whisky Association, said the decline had been caused by ‘economic headwinds and uncertainty’ but emphasised the Scotch’s future was still strong.

The Scotch Whisky Association said that following 10 years of fast growth, the "demand for Scotch is levelling off in some markets". It also called for greater support from government to fight trade barriers and access new markets.

But the body was keen to say whisky's future is still bright, with many projects for new distilleries and expansion currently underway and up to £2 billion of capital investment in Scotland committed by producers.

Scotch declined in many major markets in Asia and the Americas including China, Singapore (down 46% to £94 million), the US (down 16% to £328 million), Brazil (down 19% to £40 million) and Mexico (down 27% to £39 million). This can be attributed to a number of reasons including China's anti-extravagance measures, economic slowdown, the strength of the pound and de-stocking, the SWA claimed.

Some markets did see increases - exports to France grew by 3% to 86 million bottles, making it the biggest market by volume, and by 6% to £211 million to put it in second place, behind the USA, in terms of value. Exports to the United Arab Emirates were up 26% to £54 million, with that area acting as a distribution hub for parts of Africa, Asia and India. Australia was up 4% to £37 million. Growth of 31% in the "difficult Indian market" is particularly welcome and shows the potential opportunities there, the SWA said. There was growth in several other top 20 markets, notably Taiwan, Canada and Japan.

David Frost, SWA chief executive, said: "We are confident that Scotch whisky will continue to grow in the long-term as markets stabilise and new ones, such as emerging economies across Africa, open up. However, it is clear that in the short-run that there are economic headwinds affecting exports.

"The latest figures also act as a reminder that the success of Scotch whisky can't be taken for granted. We need support from government to beat down trade barriers and help us access new markets overseas.

"That is why we are determined to play a full part in the forthcoming debate about further devolution, so that it enables a supportive business environment to ensure the future success of Scotch whisky."

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