In pro-EU Scotland, whisky makers cheer Brexit boon

Image
AFP Glasgow
Last Updated : Dec 21 2016 | 10:42 AM IST
While most of Scotland voted against leaving the European Union, whisky makers have quietly been raising a wee dram to a side-effect of the Brexit vote -- a plunge in the value of the pound.
The currency devaluation has made exports cheaper, generating a bump since 90 per cent of Scotch whisky is sold outside Britain, although the industry warns the longer-term outlook is far more cloudy.
David Williamson, communications director for the Scotch Whisky Association, said: "Because of the relative strength of the pound we're certainly getting anecdotal reports back from our member companies that has helped to boost exports."
And Tony Reeman-Clark, who runs the Strathearn Distillery in Perthshire -- a relative newcomer to the market -- said: "I have been talking to people from bigger distilleries who said there has been a lot of interest, and a lot of sales, because of the weak pound."
Reeman-Clark, who is also the founder of the Scottish Craft Distillers Association, said Strathearn began producing whisky three years ago and its first 100 bottles were auctioned off on 1 December.
The first sold for 4,150 pounds to an Italian buyer, far exceeding Reeman-Clark's expectations.
He said he had received bids from as far away as "Auckland, Beijing, Hong Kong, Israel, Germany, America, all over the world".
Since the shock June vote the pound has tumbled about 15 percent against the greenback and Graham Hutcheon, the operations director of distiller Edrington, said the industry was having a "jamboree time".
However, he urged the government to provide clarity on Brexit, Bloomberg news agency reported.
"We don't know the questions to ask, let alone answer," said Hutcheon, whose company makes whiskies such as Macallan and The Famous Grouse.
More than 10,000 people are now directly employed in the industry -- up six per cent in the past three years - while a further 30,000 people are employed in its supply chain from bottling to distribution.
The main markets in the first half of this year were the US (357.4 million pounds), France (193.1 million pounds) and Singapore (99.6 million pounds), with total exports equivalent to 533 million bottles of whisky.
More than 500 million bottles worth around 1.7 billion pounds are exported from Britain every year. The full impact of Brexit is not expected to be revealed until distillers complete their annual returns in early 2017.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 21 2016 | 10:42 AM IST

Next Story