Scotch whisky value exports rise by 3.4%

Scotch whisky exports increased by 3.4% to £1.8 billion (US$2.4bn) in the first half of this year, boosted by the popularity of single malt, according to a report from the Scotch Whisky Association.

Scotch whisky exports rise 3.4% to £1.8 billion

Single malts now make up more than a quarter of the value of all Scotch shipped overseas.
The US experienced the largest growth with total Scotch exports up 8.6% to £388m and single malts up 14% to £123m.
According to the report, Scotch exports also returned to growth in China – up 45% to £27m and in Japan, which reported a 19% growth to £43m.
The EU remains the biggest regional destination for Scotch with the value of exports up 4% to £559m, almost a third of the total.

The growth benefits the entire UK economy and its export performance. Scotch remains Britain’s biggest food and drink export, making up almost a fifth of the sector’s overseas shipments.

The Scotch whisky industry needs support to sustain growth in the long term, the SWA has said, particularly after the impact of Brexit.

Overall, the volume of whisky shipped overseas was down 2% to 528m bottles, within the context of moderately favourable exchange rates. The lower volume and higher value is partly as result of the shift to single malts.
The figures also showed that some markets declined due to continuing economic and political headwinds, including Brazil where the value of Scotch exports fell 20% to £22m.
The SWA argues that a strong home market is required to underpin the industry’s global success and that chancellor Philip Hammond could help by cutting tax on an average bottle of Scotch from an onerous 80% next month.

Support at home would also encourage long-term confidence and underpin continued investment in the industry and supply chain that, in turn, relies on export success.

The figures also follows the near 4% hike in the March budget, which saw Scotch sales fall by 1 million bottles in the first half of 2017.