One-in-five Scotch distilleries in financial distress

By Hamish Graham

Published: 11 February, 2026

New research from financial advisory firm BTG can reveal that 69 distillers in Scotland – almost 20% of the total – are facing financial distress.

This figure rises to 286 when including distillers in financial distress from England, Wales and Northern Ireland. The data is drawn from the latest business distress data from December 2025.

In the last three months of 2025, the number of Scotch distilleries in financial distress rose from 49 to 69 – this change represents a 40.8% rise. According to BTG, this rate of change significantly outpaced the UK average increase for distillers of 12.2%.

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In 2025 as a whole, Scotch distilleries saw a 17% rise year on year in terms of the number facing financial distress, again above the UK-wide distillery average of 6.7%.

Managing partner at BTG, Thomas McKay, detailed the bevy of challenges facing the sector which are contributing to its financial predicament.

He said: “Distilleries in Scotland, where the majority of the UK’s whisky production is based, are facing a perfect storm of lowering demand, rising production costs and increased tariffs in key markets, factors that have already cost numerous brands their businesses over recent months.

“Previously thriving businesses that have existed for generations are facing distress, often through no fault of their own, and there is a case for additional support to the sector to preserve the heritage of the Scottish whisky industry in unprecedented times. This is especially clear when you consider that Scottish distilleries directly employ more than 10,000 people, well over half of the industry’s workforce in the UK.”

According to IWSR, global Scotch sales fell 3% in the first half of 2025. Focusing in on Scotch exports to the US – which face a 10% tariff entering the country – sales fell 6% in the first nine months of last year. This compares to a 9% drop in sales to the US seen in 2024. The Scotch Whisky Association (SWA) estimates this tariff is costing the sector £4m a week.

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