Great Scotch!

Scotch Whisky exports reached a new high of over £3billion in 2008 as the value of shipments increased by 8%, according to latest figures from the Scotch Whisky Association (SWA).

The report outlines how the industry generated £97 per second for the UK economy last year, but also warned the sector was “not recession-proof” and 2009 is set to be a tough year following deteriorating market conditions in the final quarter of last year.

According to the figures, exports of both bottled Malt (+9% to £497m) and bottled Blended Scotch Whisky (+9% to £2.43bn) increased in value for the fourth consecutive year.

The increase in value was achieved despite a 5% reduction in export volume, which the SWA says reflects the industry’s investment in premiumisation in recent years.

Overall, the equivalent of 1,080 million bottles of Scotch Whisky were shipped overseas in 2008, the industry’s second best ever volume performance.

However, the association predicts a challenging 2009 ahead due to weaker consumer confidence and some stock adjustments in a range of markets as a result of the economic downturn.

Paul Walsh, SWA chairman, said: “Scotch Whisky exports have proved to be resilient in the face of difficult economic conditions in a range of markets.

“To achieve record export value at such a time is quite an achievement and underscores just how important the industry is to the UK economy.

I am convinced that the major investments made by distillers will stand us in good stead for the return to better economic times.

“As that happens, whisky will play a leading role in exporting the economy out of recession.”

Alan Lodge, 11.05.2009