Scotch Exports Slump In First Half Of 2014

By Richard Thomas

According to figures released yesterday by the Scotch whisky industry’s trade group, the Scotch Whisky Assocation (SWA), overall exports for Scotch whisky slumped to £1.77 billion during the first half of 2014, down 11% from the same period last year.

Exports fell generally, but not universally. Sales in France rose making that country the largest customer for Scotch whisky by volume and the second largest in terms of value. Sales were also up in Australia, Taiwan and Japan, while exports to the United Arab Emirates  grew by a massive 26%. If the idea of whisky exports to a Muslim country seems contradictory, most of the volume services the UAE’s role as a distribution hub for Africa, Asia, and especially India.

India was another country that received rapidly rising Scotch exports during this period, up 31%, which is the silver lining in the unhappy picture of a drop in sales in two important countries: China and the United States. In China, whisky sales have taken a hit from anti-corruption and anti-luxury item measures, as well as from the strong pound sterling driving up relative prices there. Coupled to a 16% decrease in sales in the United States, Scotch’s largest and most valuable export market, and much of the general trend is explained.

Other countries where Scotch exports are sliding include Brazil, Germany, Mexico and Singapore.

The Scotch industry has enjoyed steady growth for the last decade, and overall its prospects for the coming years looks good. For example, the crimp in sales in China is probably temporary. Even so, hiccups like this show why reports that the new Asian markets will drain the world’s Scotch supply were exaggerated and short-sighted.