THE Scotch Whisky Association highlighted a “significant” boost to the industry’s exports from sterling’s plunge, but also warned of Brexit-related challenges, as it revealed annual single-malt exports had exceeded £1 billion for the first time last year.
It flagged “the seismic changes that Brexit brings to an increasingly competitive global marketplace”.
The SWA said the single-malt exports totalled £1.02 billion last year, up by nearly 12 per cent on 2015. It noted the equivalent of 113 million, 70-centilitre bottles of single-malt had been exported.
Overall, Scotch whisky exports totalled £4.01 billion in 2016, up by four per cent on 2015. This rise followed three years of decline.
The value of Scotch whisky exports to the US, the industry’s biggest overseas market, leapt by 14.2 per cent to £856 million last year. There were sharp rises in the value of exports of Scotch to Spain, Germany, the United Arab Emirates, Australia, India, Japan, the Netherlands, Poland, Latvia, Panama, Italy and the Dominican Republic.
Exports to Singapore, a distribution hub for Asia-Pacific markets including China, rose by 6.4 per cent to £225m.
However, exports to France, the second-biggest market for Scotch by value, fell by 2.2 per cent to £426m. This was in spite of a 7.8 per cent rise in the volume of exports to France last year, to 190 million bottles. In volume terms, France remains the largest export market for Scotch.
The value of Scotch exports to Taiwan, the industry’s fourth-largest export destination and a market focused on luxury whisky, dipped by four per cent to £175m.
The SWA said: “The weakness of sterling…had a significant impact on exports in the second half of last year.”
However, it added: “This short-term positive currency impact should be seen in the context of continuing uncertainties around Brexit in the longer term.”
Julie Hesketh-Laird, acting chief executive of the SWA, said: “With Scotch whisky exports returning to growth and rising to more than £4 billion, and single malts exceeding £1bn for the first time, we’re feeling optimistic about the future.
“Demand is rising in mature markets, such as the US, and newer markets, including China. This confidence is reflected in the number of new distilleries – 14 have been opened in the last few years and we know of about another 40 at various stages of planning.”
However, she added: “We have to be alert to the challenges, as well as the opportunities, of Brexit and political changes in the UK and across the globe. Industry success can’t be taken for granted and we need both the UK and Scottish Governments to work in partnership with us to deliver a business environment – at home and overseas - that supports sustainable growth.”
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