Scotch value drops in half of top markets

Last year saw the value of Scotch whisky exports drop by up to 39% in half of its 20 top markets, contributing to an overall 7% decline in 2014.

Figures released today by the Scotch Whisky Association (SWA) show that the export value of Scotch totalled £3.95 billion in 2014, down by £310m on the previous year – a drop of 7%.

The SWA has blamed “weaker economic conditions and political volatility in some markets” for the poor performance, and is calling for the EU and the next government – “no matter the political complexion” – to press the case for more open markets and trade agreements.

The biggest plummet in value exports was in Singapore, which witnessed a 39% drop to just £201m – down from £329m the previous year. The overall volume decline here was worse still, falling 41%.

Exports to the USA, the biggest market for Scotch, fell 9% by value to £748m. Volumes here also dropped by 7% to 118.6m bottles, with the SWA citing rising consumption figures to suggest a large build-up of stocks in the country was to blame.

France, Scotch’s biggest volume market, was more encouraging, as export volumes grew 3% to 183m bottles worth £445m, up 2% in value.

However, both emerging markets and some established markets suffered declines in value and volume, with SWA chief executive David Frost saying, “Economic and political factors in some important markets held back Scotch Whisky exports in 2014 after a decade of strong growth.”

Continuing, he said, “It shows that the industry’s success cannot be taken for granted and that we must continue to argue for more open markets and ambitious trade deals that tackle barriers to market access.

“The long-term fundamentals remain strong, with consumers in emerging markets wanting to buy Scotch Whisky as a high-quality and authentic product with a strong reputation and clear provenance. This drives the strong investment in Scotch Whisky production in Scotland and the significant interest in entering the sector.”