Single Malt Whisky Investment Open to Asia
Whisky Consumption in Asia
Increasing Year on Year!
Whisky consumption has exploded over the past five years across Asia and that demand invariably means that you can charge higher prices for your end product. Quite simply, we have taken our business where we can command higher prices for the products we sell. Our focus is on primary and secondary sales more notably in India, China, Japan, South Korea and Singapore (the financial centre of Asia).
Here are some relevant articles to support this move:
If there’s one reason England needs to stop Scotland leaving the UK it’s Scotch Whisky.
The Scotch Whisky Association (SWA) has released new figures on what all those wee drams add up to for the economy and the numbers are astonishing. Scotch represents more than 20% of the UK’s total food and drink exports. It’s 73% of Scotland’s export output.
Scotch is the biggest net contributor to the UK’s balance of trade. In 2016, the UK trade deficit would have been 2.8% larger, at almost £139 billion, if it wasn’t for Whisky.
The SWA says Scotch exports increased last year by 4% to more than £4 billion (AUS$7bn), and more importantly, the value of single malt exceeded £1bn for the first time.
Volumes overall were up almost 5% to more than 1.2 billion bottles. It’s the first export increase since 2013.
Single malt exports – think brands such as Glenfiddich, Ardbeg, Glenlivet, The Macallan – jumped nearly almost 12% to £1.02bn (AUS$1.75bn), equating to around 113 million bottles and a quarter of the total export market by value.
Bottled blended Scotch still takes up the lion’s share of the market at 69% of all Scotch volumes and values exported in 2016. The good news for blenders such as Johnnie Walker is that value increased for the first time since 2012 by 1.4% to £2.75bn.
The Scots have something to thank England for, with the decision to exit the EU driving down the pound, and the sterling’s weakness having significant impact on exports in the second half of 2016, the SWA says.
The industry found eight new markets and now exports to 182 countries.
The USA is Whisky’s biggest market by value, growing 14% to reach £865m, with single malt exports up 22% to £267m.
France comes in second with about half that amount, and value dropped 2.2% last year. Singapore comes in third, followed by Spain, Germany and the UAE – an impressive effort given you have to have a license to drink at home – and value rose by 6.8% (£131 million).
Australia ranks ninth by value, up an impressive 11.7% last year to crack £100 million (AUS$172m), however, total consumption fell by -4.3% to 29 million bottles, putting us behind Japan, where consumption jumped a massive 20% to 30 million bottles.
India is the market that has distillers most excited, despite a 150% import tariff. Value rose 14% to £97m, but India is already Whisky’s third biggest market by volume, at 94 million bottles, an increase of 18.4% last year. The Scots are pretty keen to see London get an FTA up and running with its former colonial outpost.
That said, Brexit has the association concerned.
Acting CEO Julie Hesketh-Laird said distillers are feeling optimistic, with demand rising in mature markets, such as the USA, and newer markets, including China.
“This confidence is reflected in the number of new distilleries – 14 have been opened in the last few years and we know of about another 40 in at various stages of planning,” she said.
“However, we have to be alert to the challenges, as well as the opportunities, of Brexit and political changes in the UK and across the globe.”
Here’s how Scotch exports have performed over the last decade:
Single malt was a stand-out performer last year. With single malt exports growing at a faster rate than that of Scotch overall, market share is increasing. It now makes up just over a quarter of the total value of Scotch exports.
Here’s a chart showing who’s shouting “slàinte!” by nation.
Scotch Whisky has enjoyed a record-breaking year for exports in 2017. According to official HMRC data, last year Scotch grew in both volume and value (by 1.6% and 8.9% respectively) to a total of £4.36bn – the equivalent of 1.23bn bottles exported globally.
The figures come from the latest HMRC export data which showed that Scotch Whisky accounted for over 20% of all UK food and drink exports. There was further growth in exports of Single Malt Scotch Whisky, growing by 14.2% in 2017 to £1.17bn.
Commenting on the figures, Karen Betts, CEO of the SWA, said: “These encouraging figures show how popular Scotch Whisky is right around the world. Already a strong export, loved for its sophistication, diversity and provenance, it’s great to see Scotch continuing to grow in established and new markets. Scotch Whisky is not just a core part of Scotland’s national identity and heritage, it is also a fundamental part of our export economy.
“With more than 40,000 jobs supported by the Scotch Whisky industry across the UK, 7,000 of which are in rural areas in Scotland, it is crucial that we continue to support both the new wave of Whisky entrepreneurs and established distillers who are taking Scotch to the world.
“It’s very important to the industry that our global markets remain robust and resilient as the UK navigates Brexit and establishes new trading relationships around the world. We have undoubtedly benefited from recent falls in the value of the pound, as have other exporters. But this short-term boost will not distract the industry from working hard to secure the conditions for long-term growth.
“With over 30% of our trade with EU, it is vital that the UK Government secures transition that allows frictionless trade to continue within European markets and with those countries with which the EU has free trade agreements.
“Longer term, we are urging the UK government to secure as smooth trade conditions as possible with Europe alongside pursuing ambitious free trade deals with key markets around the world, tackling barriers to trade, and bolstering the legal protection of Scotch Whisky.”
Facts and summary:
- Export value of Scotch Whisky in 2017 was £4.359bn , +£356m compared to 2016.
- The previous high for export value was £4.273bn in 2012.
- Exports earned £139 every second in 2017.
- 39 bottles were shipped overseas each second in 2017.
- Scotch Whisky is sold in around 200 markets worldwide.
- Scotch Whisky accounts for over 20% of all UK food and drink exports.
Scotch Whisky continues to be one of the most popular spirits across the globe and demand is driven from a diverse range of markets. Overall, the EU accounted for 31% of Scotch Whisky exports, the top destination for exports. North America and Asia/Oceania were second and third, with a share of 26% and 22% respectively.