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Scotch whisky industry worth £4bn

The Scotch whisky industry is experiencing a “second golden age” as research revealed it generates more than £4bn a year.

Exports of Scotch whisky generates £4bn for the Scottish economy

Research commissioned by the Scotch Whisky Association (SWA) to celebrate the body’s 100th anniversary, shows that the industry produces £2.9bn a year, with an additional £1.3bn coming through its supply chain.

The industry also employs around 36,000 people, 31,000 more than when the SWA was founded in 1912.

The research found Scotch whisky exports to be the main driver behind the Scottish Government’s export growth figures, higher than petroleum (£3bn) and business services (£2.5bn).

It showed that employees in the Scotch industry are more productive on average than the City of London, with each employee generating 57% more than those working in the British capital.

Such a performance, it claims, hasn’t been seen since the 1970s, a period described as a golden era for Scotch.

Gavin Hewitt, chief executive of the SWA, said: “This new research is further evidence of the key role Scotch whisky plays in the Scottish economy. The demand for Scotch whisky is coming increasingly from the world’s fastest growing markets. In comparison with other Scottish industries, Scotch whisky already enjoys an enviable export position across a wide spread of emerging economies.”

He added that Scotch will likely play a more important role in Scotland’s export markets, but more needs to be done domestically to support its potential.

“The momentum of growth needs to be better nurtured by both the UK and Scottish Governments. Scotch Whisky underpins their ambitions for export-led recovery.”

The Scotch industry is to benefit further from a raft of investment in increased output by some of the drink’s major producers.

Diageo has committed to investing £1bn to increase production over the next five years, while Chivas Brothers has pledged to increase its own distillation by 25% by April 2013, with the building of a new distillery in Speyside, the re-opening of the Glen Keith distillery and expansion at a further four Speyside distilleries.

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