Warning that minimum pricing could cause ‘serious downturn’ for whisky industry

Minimum pricing would be a “massive shot in the foot” of the whisky industry, an academic warned today.

The measure means there could be a “serious downturn”, Dr David Wishart from St Andrews University said.

The cost of a bottle of blended Scotch Whisky would go up £3.50, leaving the drink “seriously disadvantaged” in the domestic market.

Dr Wishart further warned minimum pricing could pave the way for “swingeing taxes” on Scotch overseas.

He said: “Scotch whisky is the top export from Scotland, with distilleries being reopened and newly built from Annan to Elgin to Lewis.

“Our industry, which currently employs 40,000 directly and many more indirectly, could be set for a serious downturn.”

The academic, who has researched the histories and profiled the whiskies of 100 distilleries throughout the UK, said: “The tax on alcoholic drinks is set to increase later this year, regardless of the Budget, if the Alcohol (Minimum Pricing) (Scotland) Bill is passed at Holyrood.

“It is estimated that a bottle of blended Scotch whisky will rise by £3.50 in Scotland from this summer.

“Aside from the impact on the domestic market, where Scottish retailers will be seriously disadvantaged, it will give immense succour to several export markets when they come to review their duties on Scotch whisky.”

Dr Wishart said exports of Scotch whisky had increased by 22 per cent last year, to £3.5 billion.

He added that exports to Singapore rose by 64 per cent, with a 56 per cent increase in the amount of whisky sent to Brazil and a 45 per cent rise in exports to Taiwan,

A Scottish Government spokesman denied exports of Scotch whisky would be harmed by minimum pricing.

He said: “Scotch whisky exports will not be directly affected by minimum pricing, which is being introduced to tackle Scotland’s unhealthy relationship with alcohol and, in particular, impacts on the very cheap ciders and vodkas which are particularly attractive to some young people.