Weaker economic conditions and political volatility led to an overall reduction in exports of Scotch whisky during 2014, according to new figures published today.
The Scotch Whisky Association has reported a 7% decline compared to 2013, equating to a reduction in value from £4.26bn to £3.95bn. It called on the UK government and European Union (EU) to do more to promote free trade, despite the increasing political separation between them.
The last year was characterised by consolidation in many developed markets and underlying strong growth in most emerging markets, it said. This followed several years of unprecedented growth. Political volatility affected the market’s outlook in places, and some fluctuations were driven by changes in stock levels rather than by underlying consumer demand.
But the organisation maintained that the outlook for the sector was positive. It pointed towards a 74% increase in the total value of Scotch whisky exports over the last decade, rising to 159% in the case of single malt. The fact that global exports performed better in the second half of the year – falling by just 4%, compared to 11% in the first half – was a further sign of promise.
Scotch Whisky Association chief executive David Frost said: “Economic and political factors in some important markets held back Scotch whisky exports in 2014 after a decade of strong growth. 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.”
Taiwan (+36%) India (+29%) United Arab Emirates (+27%) Japan (+8%) Turkey (+4%)
Singapore (-39%) Brazil (-20%) Germany (-18%) South Africa (-17%) Panama (-10%) Mexico (-10%) USA (-9%) Spain (-8%)
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