Scotch receives GI status in Brazil
Brazil has granted a special protection designation for Scotch whisky in a move that could be worth more than £25 million (US$32.8m) to the industry in the next five years.
The Geographical Indication (GI) status should halt the production of counterfeit products – bootleg versions that are labelled as ‘Scotch whisky’ – in turn giving Scotch distillers the confidence to increase exports to Brazil.
Brazil is the largest economy in South America and is said to be a top five global growth market for alcohol over the next five years. According to data from the Scotch Whisky Association (SWA), it was the eighth-largest Scotch export market by volume in 2023, with the country importing 43 million bottles.
Mark Kent, chief executive at SWA, said Scotch is the “first foreign product to get Denomination of Origin status in Brazil since 2019”, and it now sits beside Tequila, Cognac and Champagne with special legal protection.
He continued: “This is fundamental to ensure that millions of Brazilians can have confidence in the quality and history of what they’re buying.
“Achieving this status is ‘Brand Scotland’ in action. Removing trade barriers and securing legal protections for Scotch whisky is critical to the industry’s success, helping to increase exports and in turn creating more jobs, investment and prosperity in Scotland and across the UK.”
To celebrate the decision, UK trade secretary Jonathan Reynolds visited the Glengoyne Distillery in Scotland yesterday (21 August).
He said the government is “committed to maximising Scotland’s potential”, adding: “Today’s announcement gives Scottish distillers the confidence they need to export to one of the world’s largest economies without having to compete with fake knock-offs and pale imitations.
“Businesses who export more are better off, and removing trade barriers like this will unlock more global markets and drive economic growth across the UK.”
A GI is an intellectual property right for products that have qualities or characteristics attributable to a specific geographical origin. For spirits, this includes the production of Scotch only in Scotland and of Irish cream only on the island of Ireland.
In February, the SWA revealed exports for Scotch topped £5.6 billion (US$7bn) in 2023, but the figure had also fallen by £600m (US$786.8m) on the previous year.
The association has also called on the UK government to support Scotch following a tax hike that saw spirits duty increase by 10.1%. The duty is frozen until February 2025.
Duty on Scotch in the UK is the highest among the G7 countries and the fourth highest in Europe.
Related news
Scotch auction sales fall by 53%
