Scotch whisky exports growth is first for three years

15-Sep-2016 - Last updated on 16-Sep-2016 at 10:44 GMT

Scotch whisky exports were on the rise for the first time in three years: SWA

Scotch whisky exports grew in the first half of 2016, despite worries about the UK’s future trade relationships with the EU and other countries.

The Scotch Whisky Association (SWA) reported global export volume grew by 3.1% to 533M bottles, up from 517M bottles in the first half of 2015, the first return to growth for three years.

SWA chief executive David Frost said: “The first half of 2016 was marked by an improving Scotch whisky export performance, suggesting a strengthening in global consumer demand compared to the last couple of years.

“The industry-wide emphasis on craftsmanship and provenance, backed by investment, means that Scotch exports are well-placed to grow in the future.”

The customs value of shipments fell by 1% to £1.7bn from £1.71bn despite the rise in volume.

Value up 28%

Exports to India grew, with value up 28% to £43M. The full potential of the Indian market could only be delivered after a liberalisation of the 150% basic customs duty, claimed the SWA.

The figures covered the first half of 2016 and only one week of the period after the EU referendum vote.

The SWA highlighted the long-term challenges of defining the UK’s future trading relationship with both the EU single market and other countries.

But, in the short term, the weakness of sterling since the Brexit vote was likely to boost the competitiveness of exports.

Frost added: “It is clear that the uncertainties of the Brexit vote will create challenges for exporters and we continue to encourage early clarity on the likely shape of the UK’s future trading relationship with the EU and other countries.

‘Opportunities to grow our exports’

“We are working closely with our members and government to ensure the industry’s trade priorities are well understood: to promote open markets, and to identify opportunities to grow our exports in the future.

“Given the continued international uncertainty, we also look to government to make every effort to put in place a competitive domestic tax and regulatory environment, supporting a key home-grown industry.”

Meanwhile, whisky distiller Edrington Group has announced plans to move its headquarters to central Glasgow from an industrial site in the west of the city.

The move is due to take place in spring 2017, with about 130 staff expected to be based at the offices on Queen Street.