Whisky exports rebound in first half but trail pre-Covid highs - industry calls for support

Whisky industry leaders have called for further support even as new export figures show signs of recovery following the impact of the pandemic and US trade tariffs.

Data for the first half of 2021 shows that the value of Scotch exports was up 31 per cent compared to the same period last year, with volumes up 42 per cent.

However, exports remain down 10 per cent by value compared with 2019, and the industry still has some way to go to recover lost growth and return to the record export figures of 2019.

The US remains the biggest export market by value, worth more than £1 billion in 2019. But the 25 per cent tariff on single malt, which was implemented in October 2019, saw total exports fall to £729m in 2020, a drop of one third.

The Scotch Whisky Association, which released the latest export figures, has called on the UK government to fulfil its promises to back the industry in its autumn Budget.

The tariff was suspended this March, but the industry has warned that it will take time, investment and support for exports to the US to regain their full strength. Exports of whisky to the US for the first half of 2021 were down by 34 per cent when compared to the same period in 2019.

The Scotch Whisky Association (SWA), which released the figures, has called on the UK government to fulfil its promises to back the industry in its upcoming autumn Budget. It pointed out that the sector contributes more than £5.5 billion to the UK economy and supports some 42,000 jobs.

Karen Betts, chief executive of the SWA, said: “The pace of recovery of Scotch whisky exports is very promising. Last year, the combination of US tariffs and Covid-19 brought Scotch whisky exports to their lowest level in a decade, so it’s encouraging to see them start to regain strength.

“But like many other sectors, whisky companies are feeling the ongoing impacts of trade disruption on our supply chain and global distribution, and the cost of goods and services has risen significantly. In addition, international tourism is yet to recover and global hospitality is some way from emerging from the impact of the pandemic.

“Our industry will need support to recover fully from the turbulence and lost exports of the last couple of years. As part of this, the UK government must commit to completing the long-awaited review of alcohol duty, and to living up to its manifesto commitment to ensure that Scotch whisky is treated fairly against other categories of alcohol.”