This time six years ago, Scotch whisky was in a pretty good spot. Export shipments in 2019 had ticked up close to the £5bn ($6.75bn) barrier, with the equivalent of 1.3bn bottles sold outside the UK. Shipments to the US – already comfortably Scotch’s most important export destination – hit £1.07bn, despite a 25% slump in the fourth quarter, prompted by the introduction of a 25% import tariff. Only that, plus worrying news about a new respiratory virus emerging in China, took the gloss off the numbers. Ba ...

Core Insights - US tariffs have negatively impacted Scotch whisky exports, with global shipments down 4% in volume and 0.6% in value [1][2] - The value of Scotch exports reached £5.36 billion, equivalent to 1.3 billion bottles sold [1] - Exports to the US saw a significant decline, with volumes dropping over 9% and sales value decreasing by 4% to £933 million [1][2] Export Performance - The US imposed a 10% tariff on UK exports in April, leading to a 15% decline in Scotch export volumes and a 7% decrease in sales value from May to December [2] - Exports to France, the second-largest market for Scotch, also fell, with sales value down 3.6% and volumes down 14% [2] Growth Markets - In contrast, sales to India increased by 15% to £286 million, with volumes also rising by 15% [3] - India is now the largest market for Scotch in terms of volume, with sales reaching 220 million 70cl bottles last year [3]

China has agreed to reduce import tariffs on UK whiskies, including Scotch, following visit from the UK Prime Minister Keir Starmer to Beijing this week. A statement today (30 January) the Chinese Ministry of Commerce said "a provisional import tariff rate of 5% will be applied to whisky" as of Monday (2 February). A press release from the UK government said tariffs were being reduced on Scotch from 10 to 5%. Just Drinks understands however a tariff reduction is being applied by China to all whiskies p ...

Trump administration officials are considering easing tariffs on Scotch whisky after Prime Minister Keir Starmer raised the issue with President Donald Trump at last month’s state visit https://t.co/GOjRaSh9zu ...

Core Insights - The competition in the aged spirits market in India is intensifying, with Indian single malts outselling Scotch in volume terms in 2024, indicating a shift in consumer preferences towards premium domestic products [1][3]. Group 1: Market Dynamics - The Indian market is becoming increasingly affluent and diverse, with consumers showing interest in a variety of spirits, including Irish whiskey, agave, and Scotch, rather than just upgrading from Indian Made Foreign Liquor (IMFL) to Scotch [2][3]. - The free trade agreement (FTA) between the UK and India is expected to significantly reduce import tariffs on Scotch whisky, from 150% to 75% immediately and down to 40% over the next decade, which is seen as a positive development for Scotch whisky sales in India [3][4]. - Irish whiskey exports to India have more than doubled in value last year, highlighting the rapid growth of this category in a market that is becoming increasingly competitive [7]. Group 2: Brand Performance - Jameson is currently the leading brand in the Indian market, with a significant presence and sales volume, making it the best-selling bottled-in-origin spirit in India [4]. - The Irish whiskey industry has grown to more than double its size over the past decade, but it still lacks the maturity of a truly global category, with the US accounting for 40% of its export value [5][6]. Group 3: Scotch Whisky Challenges - Scotch whisky is facing challenges in the US market, where export shipments were flat last year and down over 9% compared to pre-COVID levels, indicating potential difficulties ahead [8][9]. - The single malt segment of Scotch whisky has seen a decline, with a 17% drop in global shipment value in 2024, while blended Scotch has managed a 4.4% increase, suggesting a shift in consumer preferences [11][12]. - The rising prices of aged single malts may be pricing them out of the market, as evidenced by a significant increase in median prices over the past five years [12][13]. Group 4: Strategic Recommendations - There is a need for a more rational pricing strategy for aged single malts and a concerted effort to reframe blended Scotch as a high-quality product, rather than relying solely on celebrity endorsements for marketing [13][14]. - Both Irish and Scotch whisky categories face similar challenges in adapting to a changing market landscape, but there are still lucrative opportunities for those who implement effective strategies [15].

How the Scotch whisky tariffs deal was struck https://t.co/lcZ4aEhGTS ...