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European spirits exports hit €1.1m per hour in 2016

European spirits exports surged by 5% to reach €10.2 billion (US$11.3bn) in 2016, driven by the whisky category, according to data from Spirits Europe’s annual trade review.

European spirits were exported at a value of €1.1m per hour in 2016

Spirits remained one of the most valuable agri-food exports for the EU in 2016 – second only to wine – generating €8.7bn in net value, according to the Trade Review 2017, which includes statistics from European data agency Eurostat.

Within the sector, whisky commanded 45% of exports, followed by Cognac at 30%, liqueurs and vodka at 10%, gin at 4%, and rum at 1%.

The industry body hailed 2016 as “an excellent year”, adding that continued growth will depend on “an even more assertive and more positive trade agenda”.

“These results show how much our European spirit drinks are appreciated around the world,” said Paul Skehan, director general of Spirits Europe. “Where markets open, and local economies grow – our whiskies, vodkas, Cognacs and gins all sell well.

“Indeed, this export success is an example of a very effective public-private partnership: the Commission goes in and negotiates tariff removal and the elimination of non-tariff barriers; and our spirits companies, large and small, follow, building awareness and appreciation of their brands and selling their products.

“But we cannot take any of this for granted. The trade ‘narrative’ last year was very difficult, with much unjustified criticism of the benefits of open trade. We also witness moves towards a more protectionist stance in many countries around the globe. In that regard, we will oppose any rolling back of agreements already signed, either multilaterally or bilaterally with the EU.”

Looking ahead

European spirits exports have doubled in the last decade, driven by Africa and the Middle East where exports rose by 5.8%, and Central and South America, up by 4.4%, followed by demand in Asia and Travel Retail, at 3.4% and 3.3% respectively.

To foster this growth, Spirits Europe stressed the importance of seeking “ambitious” free trade agreements (FTA) with emerging high-growth markets, promoting EU food and drink products in third countries, tackling illicit trade and promoting the use of geographical indications.

The body also urged the European Commission to reallocate staff resources to trade-related activities to “make the most of current opportunities”.

“We believe the opportunity now exists for the European Union to forge ahead with an even more assertive, positive trade agenda, accelerating new trade negotiations with more countries. European business, employees and investors will all benefit – as will the consumers in those third markets.

“We also urge quicker and more robust enforcement of rules already negotiated at World Trade Organisation (WTO) level or in FTAs. For all these reasons, we call on EU decision-makers to reallocate staff resources towards the trade agenda within the Commission.”

Following the European Parliament’s approval of the EU-Canada Comprehensive Economic and Trade Agreement (CETA), which aims to boost trade in goods and services and bolster investment, Spirits Europe added that it is “time for CETA to deliver on its promises” as “one of the most advanced trade deals of our time”.

The body also outlined the importance of minimising the Brexit impact on FTA negotiations to ensure the continuation of trade flows between the UK and Europe. In 2016, UK exports to the EU totalled €2.063m in 2016, while EU exports the UK amounted to €583m.

“Brexit has certainly opened a new complexity for the European spirit sector,” said Skehan. “We have shared interests, both human and corporate, based on positive, welcome integration over the last 44 years. We need to find a new, constructive partnership to preserve the trade flows and business linkages between the EU27 and the UK. We all need to stand up for trade.”

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