Scotch ‘leading exports’ to Latin America

UK businesses should follow the Scotch whisky industry’s lead in trading with Latin America, according to the Scotch Whisky Association (SWA) and the Colombian ambassador to the UK.

The Colombian ambassador to the UK, HE Nestor Osorio Londoño, shares a dram with SWA chief executive, David Frost

An audience at a 10 February conference, organised by the SWA and Canning House, a UK forum on Latin American politics, business and economics, heard that other industries can learn from Scotch, in particular with regards to targeting Latin America’s growing middle class population.

The UK already exports more than £460 million of Scotch to Latin America, accounting for one in six of all bottles shipped overseas. The spirit represents one third of all Scottish exports to the region.

“Latin America is a big and growing market. That’s why we took the lead in making the first Canning House event in Scotland happen,” said David Frost, SWA chief executive.

HE Nestor Osorio Londoño, ambassador of Colombia to the UK, told delegates at the event that his country is working to promote exports and imports, and is creating a solid base for developing trust and confidence.

He explained that the four countries in the Pacific Alliance trading group – Colombia, Peru, Mexico and Chile – formed a large market to facilitate the free movement of goods, services and capital in the region. He is hopeful other “like-minded” countries will join the Alliance.

Rob Capurro, chief executive of Canning House, added: “If you total up all of the middle class in Latin America, there are more than in India and China combined.”

However, Peter Smith, Diageo industry affairs director, cautioned that issues including tariffs and customs duties had to be tackled, partly because they are an incentive for alcohol to be sold through unofficial channels.

Concluding proceedings, Fiona Hyslop MSP, Cabinet Secretary for Culture, Europe and External Affairs, described whisky as one of Scotland’s ‘greatest assets’ that, along with the country’s warm welcome, creates a unique selling point to help us forge friendships overseas.

Earlier this month, SWA representatives met with UK government officials to make a case for a 2% reduction in spirits duty.