Scotch whisky wins protection from counterfeiters in key Indian market

WHISKY industry leaders yesterday hailed a deal to provide stronger legal protection for Scotland's national drink in India, amid an ongoing fight against counterfeiting.

India's government has granted the drink "geographical indication of origin" (GI) status, meaning that only spirits produced in Scotland can use "Scotch whisky" on their labels.

India is one of Scotch's top-ten markets by volume, with exports up by 40 per cent in 2010 to the equivalent of 43.1 million standard bottles. The value of exports was up 46 per cent to about 41 million.

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The long-awaited protection - which was granted following an application in 2009 by the Scotch Whisky Association (SWA) - is the first specific legislation on the sub-continent to deal with whisky.

Over the past decade, the SWA has pursued scores of counterfeiters under general laws concerning fake products.

Indian consul general Anil Anand joined SWA chief executive Gavin Hewitt and Scotland Office minister David Mundell in Edinburgh yesterday to mark the "breakthrough" in the battle against imitation whisky.

Hewitt said: "India is one of our priority markets. There is a huge demand for whisky from discerning Indian consumers. It is important that they have confidence in the quality and integrity of what they are buying. We plan to celebrate the GI registration later this year in New Delhi, where we will take the opportunity to promote Scotch whisky in that important market."

Mundell added: "The UK government has been working hard to protect Scotch whisky and the consumer from the passing-off of inferior products.

"The awarding of GI status in India is good news for Scotland and great news for one of its most important exports. India is the latest market to benefit from GI protection and we will continue to work with the SWA to support this essential Scottish industry."

Gaining protection in India is the latest in a series of victories for the SWA as it seeks to stamp out overseas imitations. Last year, the trade body hailed a hat-trick of successes in China, Panama and Vietnam.

In December, Vietnam granted Scotch whisky GI protection following an application dating back to 2008. Vietnam is a small but growing market for Scotch, worth about 1m a year, but importers face steep tariffs of about 55 per cent.

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Panama, Scotch's 20th largest export market, granted protection in November. Beijing awarded protection in September, helping producers to secure their 55m foothold in China.

Scotch whisky exports hit a new record in 2010, rising by 10 per cent to 3.45 billion. The United States remained Scotch's largest export market by value, up 19 per cent to 499.3m.

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