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UK whisky
sector faces subdued outlook amid tariff
and export uncertainty.
In whisky
business news, Johnston
Carmichael's latest annual food and
drink survey points to a slowdown in the
whisky industry, with optimism levels
lagging behind the wider sector as
businesses grapple with mounting
pressures.
UK whisky producers are finding it
increasingly difficult to stay positive
in the face of rising costs at home and
ongoing uncertainty abroad, according to
new research from the independent
accountancy and advisory firm.
The findings form part of Johnston
Carmichael’s annual report, which
surveyed 98 food and drink businesses
across the UK—including 19 operating in
the whisky sector—between January and
February 2026. The majority of
respondents (78%) were based in
Scotland, with businesses spanning a mix
of sizes and turnover levels, from small
enterprises to companies generating more
than £100 million annually.
The research highlights a sector under
strain, as companies balance cost
pressures with the need to remain
competitive without significantly
increasing prices for consumers. Just
37% of whisky businesses said they felt
optimistic about the year ahead, notably
lower than the 56% recorded across the
broader food and drink industry.
Rising labour costs remain the most
significant pressure, cited by 42% of
whisky distillers. At the same time,
businesses are contending with wider
geopolitical instability, with tariffs
(37%) and taxation (47%) ranking among
the most pressing regulatory concerns.
Despite these challenges, international
trade continues to be critical to
growth. New export customers were
identified as the leading growth driver
by 37% of whisky businesses, underlining
the sector’s reliance on global markets.
However, sentiment toward key regions
remains mixed. While the European Union
continues to be a major export
destination (32%), confidence has
weakened. Only 21% of respondents
reported improved sentiment compared to
last year, while 58% said their outlook
had either remained unchanged or
deteriorated.
There are, however, signs of resilience.
The survey found that 79% of whisky
businesses are continuing to invest in
innovation and new product development.
Meanwhile, most consumers have been
shielded from sharp price rises, with
79% of respondents reporting average
increases of just 0–5%.
Grant Roger,
Audit Partner and lead of the Whisky
Finance Director Club, said: "This
year’s food and drink survey has laid
bare the magnitude of challenges that
are disproportionally affecting UK
whisky distillers.
"The issues faced in international
trading are in addition to domestic
challenges with labour and taxation
costs continuing to rise. This, combined
with lower Gen Z alcohol consumption,
has led to stagnation in the market and
goes a long way to explaining why
optimism levels are below 40%."
Workforce trends further reflect the
sector’s stagnation. Among those
surveyed, 37% reported that employees
leaving the whisky industry did so due
to stagnant wages, while a further 27%
cited limited opportunities for
progression.
Energy costs have also become a more
prominent burden, with 21% of whisky
businesses identifying them as their
largest cost increase—more than double
the 9% reported across the wider group
of respondents, which included
manufacturers, growers, wholesalers and
retailers.
Roger added: "The resilience of the UK
food and drink industry shouldn’t be
understated and there is positivity in
the levels of innovation and new product
development. But while the sector as a
whole faces challenges, whisky
distillers are experiencing major
obstacles above and beyond what many
others are.
"Whisky is crucial to the UK food and
drink industry and remains the runway
for all other producers to flourish.
However, insights are clear that amidst
widespread global uncertainty the sector
craves greater clarity and stability."
Across the full sample, 55% of
businesses surveyed were small, 31%
medium-sized and 14% large, with 58%
operating as food and drink
manufacturers. Johnston Carmichael,
which works with more than 500 producers
nationwide, says the findings highlight
both the resilience of the industry and
the disproportionate challenges
currently facing whisky distillers.
With more than 900 employees across the
UK and a history spanning over 90 years,
the firm continues to provide
sector-specific insight and advisory
services, while also playing an active
role in initiatives such as the Kiltwalk
and the Mindful Business Charter through
its commitment to corporate social
responsibility.
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