Scotch exports boom in H1

Exports of Scotch whisky have increased to almost £2 billion in the first half of the year, a rise of over 10%, according to the Scotch Whisky Association.

The trade body has reported that the value of exports has risen to £1.97bn, a 10.8% increase against the same period last year.

The figures also show that volume exports increased 5.6% to 558m bottles.

Single malts now represented 28% the total value, rising 14.4% to £550m, while blended malts grew 8.9% to £1.26bn.

Although the EU remains the biggest market for Scotch, accounting for 39% of the volume and 31% of the value (with France being the biggest market by volume at 90m bottles), exports to China, India and the US are substantial.

Exports by value to China in the first six months of the year were up 34.8% to £36.3m and to India up 44.4% to £56m.

The US, meanwhile, remains the most important market by value, worth £400m.

In order to maintain the current momentum, the SWA has called on the government to ensure as smooth an exit from the EU as possible and freeze duty in the forthcoming budget.

Karen Betts, chief executive of the SWA, commented: “It’s hugely encouraging to see Scotch Whisky exports continue to grow – and at double-digit rates – in the first half of this year.

“Scotch Whisky is a luxury spirit, crafted with care in Scotland, and enjoyed all over the world – in established markets like the EU and emerging markets like India and China. As the UK leaves the EU, the industry wants to continue to trade with the EU as easily as it has while being able to pursue growth opportunities globally.

“But in order to flourish overseas, the industry needs support at home. Competitive tax rates are crucial, enabling producers to start-up, scale-up and invest for growth, such that they continue to be the dynamic job-creators, employers, tax-generators and exporters that they are.

“Right now, £3 in every £4 spent on Scotch in the UK is collected in tax by HM Treasury. The industry believes this tax burden is too high, and is more likely to stifle growth than nurture it. That is why we are calling on the chancellor to freeze duty on Scotch whisky in the Autumn Budget.”