Let’s drink to opportunities - Jennifer Talbot

Attractions such as Edinburgh’s Johnnie Walker Experience are a growing part of the sectorAttractions such as Edinburgh’s Johnnie Walker Experience are a growing part of the sector
Attractions such as Edinburgh’s Johnnie Walker Experience are a growing part of the sector
Scotch whisky is a massive contributor to Scotland’s economy and next UK Government must support it

With the general election coming soon, minds turn to the years ahead and how to ensure the continued growth of the economy. On Friday 5 July, as we toast the successful party, the Scotch whisky industry will hope they commit to investment and support.

As underscored in the recent election manifesto produced by the Scotch Whisky Association (SWA), the industry presents important benefits and opportunities to the Scottish and UK economies.

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The SWA says the sector contributes £7.1 billion to the UK economy annually. Scotch whisky accounts for 26 per cent of UK food and drink exports, a figure that rises to 77 per cent in Scotland, with 1.35 billion bottles exported in 2023 (or 43 bottles every second). Crucially, the global consumption of Scotch whisky supports 66,000 jobs in the UK – 41,000 of which are in Scotland, many in rural areas where the industry is the principal source of employment. The SWA reports that with exports of £1.8bn in 2023, Asia Pacific is the most valuable export region, with standout growth in China. The United States remains the largest export destination, buoyed by mutual suspension of tariffs on the trade of single malt Scotch whisky and Bourbon and American whiskey until June 2026. A priority growth market is India, with hopes that a trade agreement is on the horizon.

Jennifer Talbot is a lawyer in DLA Piper’s Litigation and Regulatory practice in ScotlandJennifer Talbot is a lawyer in DLA Piper’s Litigation and Regulatory practice in Scotland
Jennifer Talbot is a lawyer in DLA Piper’s Litigation and Regulatory practice in Scotland

On the domestic front, a resurgence is evident with the reopening of distilleries like Port Ellen and Rosebank in Scotland. The trend extends to visitor centres and restaurants at distilleries, emphasising the industry's adaptability and innovation. The transformation of spaces like Edinburgh’s Johnnie Walker on Princes Street into immersive whisky experiences showcases the industry's commitment to engaging consumers.

As we navigate the post-election landscape, the Scotch whisky industry stands poised to drive economic growth, create jobs and capitalise on international trade opportunities. However, the industry’s growth and excitement also come with challenges that must be addressed. Balancing innovation with preserving tradition is crucial for sustainable development.

On 30 May 2024, the SWA and the Health and Safety Executive released online guidance called The Guide to Applying for Hazardous Substances Consent to aid distillers in expanding production and opening excise warehouses, emphasising the importance of industry development while upholding standards.

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DLA Piper has a dedicated Scotch whisky practice, advising domestic and international clients. In an industry with a specific regulatory framework, we have established connections with stakeholders to provide advice which incorporates black letter law and custom and practice. Recently, we have seen a rise in investment in distilleries and the acquisition of buildings for excise warehouses to meet increased demand. For investors, it remains important to verify provenance, and we’ve implemented a comprehensive verification process, tracking the spirit through its lifecycle from cask to bottle.

As the UK heads to the polls, let’s hope that the next Government commits to the continued growth and success of Scotland’s national drink – the unmistakable and irreplaceable Scotch whisky.

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