Across Scotland, numerous distilleries are emerging. In Campbeltown, three are in the pipeline – Machrihanish, Witchburn, and Dal Riata. In Fife, Eden Mill is planning to follow forerunners such as Nc’nean who have become verified as net zero carbon for their own operations (scopes 1 and 2), while planning has been granted to build the smallest distillery on Islay.

All this marks a significant moment in this thriving industry. Earlier this year, global exports of Scotch Whisky grew to more than £6 billion for the first time in 2022 (according to the Scotch Whisky Association (SWA)), boosted in no small part by core revenue for The Macallan owner, Edrington, hitting £1 billion for the first time.

The export market has been vital to this growth when you consider that circa 90 per cent of Scotch Whisky is exported. The sector has faced all the familiar issues known to the wider food and beverage sector, including higher energy and lending costs. However, the weaker pound has been considered generally good for Scotch Whisky exports and China’s increasing demand for premium brands and expressions helped drive the value of Scotch Whisky exports up.

Although the US may continue to be the most valuable market for exports, Scotch Whisky was exported to a staggering 174 global markets in 2022. It is the country’s largest manufacturing sector.

The global appeal of Scotch Whisky is undeniable, with its reach expanding to both established and emerging markets. This presents Scotland’s whisky producers with a unique opportunity for international growth.

Dentons recognises the importance of nurturing the next generation of whisky pioneers and counts many of the country’s leading distilleries and brand owners as clients. We have actively engaged with whisky producers, from independent start-ups to multinational portfolio owners, providing them with the legal guidance needed to navigate the industry’s complexities.

Dentons has assisted ventures in navigating the legal intricacies involved in bringing a new distillery and whisky to life. From licensing and compliance to intellectual property protection, our firm has offered legal guidance throughout the journey. Our expertise in corporate law, intellectual property rights and international trade regulations has been crucial to emerging distilleries. Dentons has advised numerous established industry names – including The Macallan owner Edrington – with transactions around distilleries and brands, and helped the new generation – including Lindores Abbey and Nc’nean – to secure the investment required to start building their distilleries and their brands.

By fostering innovation and entrepreneurship, we are contributing to the continued growth and diversification of Scotland’s whisky sector.

However, we also appreciate that the whisky industry is not without its challenges. The ongoing India trade talks, for instance, hold significant implications for Scotch Whisky. India is the world's largest market for whiskey by volume globally and reducing trade barriers could open doors for increased Scotch Whisky exports. A combination with Link Legal has established a physical presence for Dentons in five of the six largest cities in India allowing Dentons to closely monitor these negotiations and offer legal insights to clients on potential outcomes and strategies to navigate this evolving landscape.

Dentons is proud to support so many distillers in Scotland and, as the global market expands and new generations emerge, the opportunities for the whisky industry are boundless.

Adam Knowles is a Partner, Dentons

International growth is within distillers’ grasp - Adam Knowles