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Single malt Scotch whisky exports top 拢1bn for first time
- Author, Douglas Fraser
- Role, Business/economy editor, Scotland
Single malt Scotch whisky topped 拢1bn worth of exports for the first time in 2016.
The milestone reflects a return to growth for exports of Scotch more widely, with nearly 拢4bn of overseas sales in total.
Exports account for around 93% of production.
That follows a dip in 2014 and 2015, when a rapid increase in previous growth was checked by disrupted overseas markets.
Chinese officialdom cracked down on lavish hospitality, while key growth markets in Venezuela and Brazil hit serious economic difficulties.
British exports of gin, meanwhile, rose by 13% last year, as it enjoyed a boom in variety and interest, rising to 拢474m worth.
The return to growth for Scotch whisky has been driven by the success of single malts appealing to luxury and prestige markets.
New features
These have to be made at one distillery, from malted barley, and matured for at least three years in traditional casks.
They are led by brands including Glenfiddich, Glenlivet, the Macallan, Jura, Laphroaig, Talisker and Highland Park.
Figures issued this month by HM Revenue and Customs trade shows the amount of pure spirit exported as single malt in 2016 was equivalent to 113m standard bottles at 40% strength.
That did not rise as fast from 2015 as the value placed on single malts, as distillers find new expressions and add new features with which to add super-premium value.
These include longer maturation, stronger, cask-strength versions, and different types of cask flavouring.
The total value of single malt exports reached 拢1.02bn, up from 拢914m in 2015.
It now represents nearly 10% of the volume of Scotch exported, and more than 25% of its value.
The total value of Scotch whisky exported from the UK last year reached 拢3.999bn. That was a rise from 拢3.845bn in 2015. The previous three years were above 拢4bn, peaking in 2012 at 拢4.283bn.
The USA remained the biggest market for the value of sales, rising from 拢749m to 拢854m.
France remained the biggest importer of Scotch by volume, with 189m bottles. The value of sales in France was 拢424m, of which single malts made up 拢153m.
High trade barriers
Other major markets for Scotch include India. It has high trade barriers to bottled Scotch, but the country's distillers import large quantities in bulk, for mixing with "Indian-made foreign liquor".
The value of exports to India was up from 拢85m in 2015 to 拢96m last year.
Singapore is a distribution centre for south-east Asia and one indicator of the strength of the Chinese market for Scotch. Sales there were 拢224m, up from 拢210m in 2015 and 拢200m the previous year.
Single malt sales have been an important part of the success of whisky in China. Although the value of the premium brands fell from 拢52m to 拢46m, the volume sold went up to 9.6m bottles.
Further analysis of the figures by Leon Kuebler, head of research at WhiskyInvestDirect, an online marketplace, showed the impact of the weaker pound helped the value of sales accelerate.
In the first half of 2016, the value of exports was down 1% while volumes increased. But after the European referendum and the slump in the value of sterling, the value of sales rose nearly 7%, and faster than volume increases.
That research also noted the rise in exports to Spain, which was a big consumer of Scotch until the financial crash. The value has returned to its highest level since 2007.
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