EsExports of Scotch whisky climbed 8.9% in value and 1.6% in volume to £4.36 billion ($6.0 billion) in 2017 according to SWA data. The outlook for sales in the coming year should be driven by economic and taste factors, though subsequently the issue of Brexit may have an impact on tariffs charged as outlined in Panjiva research of August 7. The challenge of brand protection, a particular issue in China, appears to have been addressed via a new 10 year copyright agreement.
So far though the Chinese market is relatively unimportant. Chinese imports of Scotch whisky climbed 19.8% on a year earlier in the 12 months to November 30, Panjiva data shows, with British exports climbing 21.3% to reach $118 million and account for 88.0% of the total. The improvement partly reflects a downturn after the anti-extravagance push by the Chinese government in 2013. That partly came at the expense of American whiskies and bourbons, which only grew by 6.1%. One challenger at the premium end of the market are Japanese exports, which surged 31.6% higher though only accounted for a 2.9% share.
Source: Panjiva
Exports to the U.S. meanwhile are more important, having reached $1.27 billion in 2017. While that only represented a growth of 2.4% on a year earlier the market is more mature, and there was a single month record of $157 million in December. The main competitor is Irish whiskey, which grew by 15.6% to reach a 20.2% market share vs. Scotch’s 64.8%.
Source: Panjiva
Whisky (and whiskey) exporters face a bigger challenge from other spirits though. While still the number one U.S. import at $1.97 billion in 2017 the growth was only 4.7%. That compared to brandy which grew by 6.7% to $1.29 billion and tequila which surged 15.1% to $1.23 billion. The rush by drinks-makers to acquire premium brands, most recently Patron, is a sign that tequila’s rise could continue to threaten whisky in a spirits import market that only grew by 2.3% in 2017 overall.
Source: Panjiva
