Scotch whisky exports decline by 7%

The export valuation of Scotch whisky declined by 7% on an annualised basis to £3.9bn in 2014 on a weaker economic climate, the Scotch Whisky Association (SWA) said on Tuesday.

The lobby group said political uncertainty in certain emerging markets also dented the industry’s bottomline as global export volumes declined by 3% to 1.19 billion 70cl bottles.

SWA said exports to the US, considered the biggest market for Scotch whisky by value, slumped 9% largely contributing to the decline. On the positive side, exports to Taiwan rose by 36% to £197m while exports to India were up 29% to £89m, despite a 150% import levy imposed by the Indian government.

David Frost, chief executive of SWA, said: “Economic and political factors in some important markets held back Scotch Whisky exports in 2014 after a decade of strong growth, with total value of exports up 74% since 2004 and single malt up 159%."

"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."

However, Frost also noted that long-term fundamentals remained 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."

The SWA has called on the European Union and UK government to pursue ambitious Free Trade Agreements (FTAs) in order to boost exports.