Scotch whisky exports show signs of recovery

Scotch whisky exports are showing signs of recovery after taking a hit from Covid-19 and US tariffs, according to an industry body.

New figures from the Scotch Whisky Association (SWA) show the value of exports in the first half of this year was 31% higher than the same period in 2020 - with volume up by 42%.

However, the value was still 10% down on 2019's record figure.

The SWA said the industry "still has some way to go" to recover lost growth.

• US suspends tariffs on single malt Scotch whisky

• Scotch Whisky Association reports £500m loss after US tariffs

Exports of Scotch to the EU fell in the first quarter of 2021, compared with 2019, as Covid-related lockdowns continued and producers "adjusted to new post-Brexit trading arrangements", the SWA said.

However, they grew at a faster rate between April and June 2021 than in the same period of 2019.

Exports to the US continued to take a hit at the beginning of the year, as a result of a 25% tariff imposed on single malts in late 2019 following a trade row with the EU.

The tax was suspended in March this year, but exports for the first half were down by 34% when compared with 2019.

However, the US remains Scotch whisky's biggest export market by value.

Meanwhile, exports to markets in Asia, which were quick to recover during the second half of 2020, continued to grow in the first half of 2021.

China has already surpassed the £89m exported in the whole of 2019 - growing by 126% to £91m.

'Very promising'

SWA chief executive Karen Betts described the pace of recovery of exports overall as "very promising".

She said: "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, Scotch 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."

Ms Betts added that the industry would need government support on issues such as alcohol duty "to recover fully from the turbulence and lost exports of the last couple of years".