According to the Scotch Whisky Association (SWA) the exports of Scotch whisky reached the positive mark by the end of September despite a poor performance in the first quarter. The association is confident of a better show in the coming quarter as Christmas season and the new Scotch whisky regulations are likely to boost the business further.
The export figures showed that over 807mn bottles of Scotch whisky were shipped overseas between January and September 2009 to give 1.5 percent growth as compared to previous year. The SWA stated that values were just 3.5 percent down on the previous industry record in 2008, reaching $3.45bn, the industry’s second best export value performance at the end of September.
The SWA felt the adverse economic conditions and trade de-stocking were major factors for the industry to underperform in the first quarter. Gavin Hewitt, SWA chief executive, opined that after a tough first quarter, the Scotch whisky exports had performed well so far in 2009.
Apart from Christmas and New Year period the industry is also expected to do well with the new Scotch whisky regulation in place. As per the new regulation, only whisky that has been bottled in Scotland will be allowed to carry the label ‘Scotch Whisky’ with clear indication on whether it is a single malted or blended one. The rule that came into force in the last month will act as deterrent to limit the influx of counterfeits into the markets.
Scotland has been distilling whisky for more than 500 years, and Scotch whisky is the largest finished export product of the country which accounts for 20 percent of total shipped items. More so, Scotland’s national drink provides about 40,000 jobs to its economy.
SWA informed that within the top ten markets, the value of exports to France, South Africa and Venezuela increased, while shipments to the US, Spain and South Korea crimped. It has been observed that the distillers continued to invest in future opportunities even during the bad economic times to pull the economy out of recession.
Toboc Trade Times