Whisky Focus - Scotch Whisky Exports Remain at Record Levels

Growth was seen in the USA, Venezuela, Germany and in exports to Russia through the Baltic states in the first six months of this year. Asia remained steady with good growth in Taiwan. This helped Scotch Whisky exports maintain their value in the first half of 2012 at £1.8 billion, despite continuing pressure in some Eurozone countries and the after-effect of an increase of shipments to France last year ahead of a substantial tax rise.

In the first half of 2012, exports to the USA jumped by 13% to £303 million and it remains the biggest market by value for Scotch Whisky.

Venezuela, the ninth biggest market for Scotch, recorded significant growth - leaping 31% to £42m. In Europe, Germany saw exports increase 4% to £65m in the first six months of the year. Latvia and Estonia now appear in the top 20 markets, reflecting a surge in demand in Russia.

India saw an increase of 28% to £28m and the SWA remains hopeful that a conclusion can be reached on the European Union/India Free Trade Agreement (FTA) by the end of the year. The FTA would see a gradual reduction of the onerous 150% tariff on imported spirits. Reduction in that tariff would allow India to fulfil its potential to be one of the biggest markets for Scotch.

Scotch Whisky continues to attract younger, affluent consumers in newly emerging markets and this trend is expected to continue.

The Scotch Whisky Association (SWA) said that in the full 12 months to the end of June 2012, the value of Scotch Whisky exports increased by 12% to £4.2 billion from £3.8 billion and the value of trade stood at £1.8bn for the first 6 months to the end of June - the same as the first half of 2011.

There was a 13% boost in demand from the US, while sales were also up strongly to Russia and Venezuela.

But with the eurozone economy struggling, exports to Spain - the fifth biggest market for Scotch - fell by 24%.

An increase in alcohol taxes in France, the second biggest market, helped to explain a 14% drop there.

Germany saw exports climb by 4% to £65m in the first six months of the year, while India saw an increase of 28% to £28m.

The total value of Scotch whisky exports grew over the full year to the end of June, rising by 12% to £4.2bn.

Gavin Hewitt, chief executive of the Scotch Whisky Association, said:

"Over the past year the value of Scotch Whisky exports has continued to increase and we're delighted to build on our outstanding success in 2011 with 12% growth in the last 12 months. While there has been a levelling off in the first half of this year, the industry remains confident about the future.

"Recent announcements of investments in new distilleries and the expansion of existing facilities demonstrate the level of confidence producers have in future growth opportunities."

Top 20 Scotch whisky export markets year to date end of June 2012:

The table shows the change in value of exports in the first six months of 2012 compared with the first six months of 2011. Value (£ million)

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