Figures released today (Sunday 30 May 2010) reveal that Scotch whisky is worth £4 billion a y ear in added value to the Scottish economy - with the industry spending in excess of £1.1 billion annually on supplies produced north of the Border. A new study - The Economic Impact of Scotch Whisky Production in Scotland - by Verso Economics, also reveals the industry’s annual turnover in Scotland is now £6.4 billion and that after oil & gas the sector remains the country’s leading manufactured export , with shipments of £3.1 billion a year. The spending with Scottish suppliers, which includes £200 mi llion on cereals, helps support 35,000 Scottish jobs, with the industry itself directly employing 10,300 people across the country. The study, commissioned by The Scotch Whisky Association, also reveals:
Spending with Scottish suppliers has increased by 61% since 2000
Export value has grown by 42% since 2000 (from £2.2 billion)
Capital spending of £355 million a year, of which nearly a third is invested in Scotland
Scotch Whisky’s economic impact is as significant as tourism - with employees adding twelve times more value per head
Industry productivity at £262,000 per employee is six times the Scottish average
One fifth of Scotch Whisky jobs are in the more fragile rural communities across the Highlands & Islands
Scotch Whisky supports double the number of Scottish jobs than those in aerospace & defence, as well as a similar number to those employed in Scottish universities
The majority of employment is found in Strathclyde (52%), Central Scotland & Fife (17%), Grampian (14%), and Lothian (11%)
"Scotch Whisky's importance to Scotland is clear. The study confirms Scotch Whisky is a cornerstone of the Scottish economy, supporting 35,000 jobs and generati ng around £4 billio n in added value. That economic impact benefits every corner of Scotland, with distillers spending over £1 billion across the supply chain. "The new UK Government wants to support manufacturing and exporters, and build a fairer tax system. It could combine all three objectives by reforming an unfair duty regime which undermines the competitiveness of the Scotch Whisky industry. The alcohol duty structure is no longer fit for purpose, discriminating against Scotch Whisky at home and sending out the wrong message overseas. “ We are pleased the new Coalition Government has announced it will review alcohol taxation. The aim must be to put in place a fairer and more socially responsible regime where all alcohol is taxed according to conten t. With the right support, the Scotch Whisky industry can deliver even more to communities across Scotland."
Note to Editors: 1. ‘ The Economic Impact of Scotch Whisky Production in Scotland’ has been prepared by Verso Economics (http://www.versoeconomics.com/) for The Scotch Whisky Association. The main findings , based on 2008 figures, are:
Economic I mpact
Scotch Whisky contributes £3.9 billion a year in Gross Valued Added (GVA) to the Scottish economy once industry spending across the supply chain is taken into account (and £2.7 billion in GVA to the economy directly)
Over £1.1 billion is spent every year with Scottish suppliers, up 61% since 2000 Four fifths of annual operating expenditure is in Scotland, including £200 million on cereals and £300 million on dry goods (bottles and packaging)
Annual industry turnover in Scotland is £6.4 billion Capital spending of £355 million a year, of which £108 million is invested on capital items made in Scotland £464 million in income ( salaries & wages) generated within the industry and over £1.6 billion across the supply chain
Employment
10,300 people directly employed by the industry in Scotland, up from 9,600 in 2000
20% of employment is in rural communities, largely across the Highlands & Islands
52% of jobs are in Strathclyde, with 17% in Central Scotland & Fife, and 11% in Lothian
In total, 35,000 Scottish jobs rely on the continued success of Scotch Whisky Employee productivity at £262,000 per head is six times the Scottish average
Sector Comparisons
Economic impact is as significant as the entire tourism sector and o ver 1.5 times the impact of
Scottish creative industries (including TV, radio and publishing)
Supports a similar number of jobs as Scotland’s universities and double aerospace & defence employment levels
Scotland’s leading manufactured export (exc luding oil & gas), with exports 9 times the value of textiles and 4.5 times larger than life sciences respectively
2. The full study can be downloaded from the SWA website at the following address: http://www.scotch -whisky.org.uk/swa/files/EconomicImpactReportMay2010.pdf 3. For f urther information, please contact Campbell Evans (0131 222 9231 and 07768 002 262) or David Williamson (0131 222 9230 and 07730 496 151).
Global exports of Scotch whisky reached record levels in 2009 despite the economic downturn in some major markets , according to annual figures published today by The Scotch Whisky Association (SWA) . Scotch Whisky exports rose by 3% in value to £3.1 3bn, contributing £99 every second to the UK trade balance. Export volumes increased by 4% worldwide, with the equivalent of 1. 1bn 70cl bottles of Scotch Whisky shipped. Scotc h Whisky enjoyed continuing success in France (+13% in value) and the United States (+13%), with Brazil (+44%) and South Africa (+7%) both significant emerging markets in 2009. After a slow start to the year caused by trade de-stocking and weak er consumer confidence, the SWA reported an impressive export performance in the second half of 2009. In comparison to 2008, an extra £71m of Blended Scotch Whisky was exported during the year (+3%), with Malt Scotch Whisky shipments rising by £4m (+1%). Scotch Whisky exports have risen by £977m in shipment value over the last ten years, a 45% increase. Shipment volume has also increased by 13%, the equivalent of 131.8m 70cl bottles, since 2000.
Paul Walsh, Chairman of the SWA, said: “ Scotch Whisky distill ers have delivered record exports in the face of a global economic downturn. It is an impressive performance, underscoring the importance of Scotch Whisky to the UK economy. The industry is continuing to invest and sustain its efforts to secure fair access to export markets. We look to the next UK Government to work with us to build on Scotch Whisky’s success in the future.”
Gavin Hewitt, Chief Executive of the SWA, said: “ As one of the UK’s leading manufactured exports, all political parties should recognise and support the Scotch Whisky industry, both at home and abroad, during the next Parliament. A review of the UK excise duty system is long overdue; we want to see a domestic operating and fiscal environment that better supports our global competitiveness.”
Note to Editors: 1. The SWA figures are derived from HM Revenue & Customs data and are based on individual company declarations of the export value and volume of shipments to each market (which may not be the final destination of t he consignment). The figures do not represent sales/consumption of Scotch Whisky in those markets. 2. A summary of Scotch Whisky shipments on a regional basis and a table showing the top ten export markets by shipment value and volume are attached. 3. For further information please contact David Williamson (0131 222 9230 and 07730 496 151) .
- Scotch up 38p a bottle, duty rises 21.6% in two years –
Scotch whisky distillers said the Chancellor had clearly not checked his own books and the falling revenue from spirit s before raising duty by more than inflation. They called for a change of policy to avoid further damage to Scotch Whisky in the UK market. The Budget increase means that spirits duty, which is already higher than the duty on beer, wine and cider, has ris en 21.6% in the last two years. The duty on a bottle of Scotch Whisky is now £6.66. The Budget adds 38p tax to the price of a bottle of Scotch Whisky. Gavin Hewitt, Chief Executive of The Scotch Whisky Association, said: “The Chancellor’s duty escalator policy is totally misguided. The policy has failed. Revenue from spirits to the Treasury fell by £49m in 2009. Today’s duty rise by a Scottish Chancellor will not secure the increased revenue that he is looking for and undermines an industry that brings massive economic benefit to Scotland. He has hit Scotch at home and set a bad example for duty regimes in our export markets. Today’s decision is worsened by the announcement that the above inflation rises will continue for an extra two years to 2015. “After the election the new Government needs to take a long hard look at the excise duty regime. The escalator should be abolished, duty on spirits should be frozen and the duty discrimination faced by Scotch, which the Chancellor has worsened again today, sh ould be addressed through approximation of duty rates, and eventually duty equivalence for all alcoholic drinks over the life of the next Parliament.”
Notes to editors: 1. Today’s duty rise increases the duty on a bottle from £6.34 to £ 6.66. With VAT charged on that extra duty, the total tax uplift on a bottle is 38p. 2. Receipts from spirits to the Treasury fell £49m in 2009 compared with 2008. For further information: Campbell Evans 0131 222 9231 or 07768 002262
Scottish Government plans to introduce alcohol minimum pricing suffered a further serious setback today (March 4th , 2010), when the European Court of Justice ruled that minimum pricing of tobacco in Austria, France and Ireland is illegal.
The ruling upheld an October 2009 ‘Opinion’ by the Court’s Advocate-General that minimum pricing unfairly distorts competition. Minimum pricing arrangements in the countries involved were all f ound to violate EU law, in line with over thirty years of European Court case-law. The Scotch whisky Association (SWA) called on the Scottish Government to withdraw its minimum pricing proposal from the Alcohol Bill and work with all parties to address alcohol harm in Scotland.
Gavin Hewitt, Chief Executive of The S cotch Whisky Association, said: “Today’s ruling is a major development, confirming our contention that minimum pricing breaches EU law and unfairly distorts competition. Given this latest evidence, the Scottish Government must now recognise the legal realities. It cannot introduce a trade barrier in breach of the UK’s European obligations by imposing minimum pricing on alcohol in Scotland. “The Court has also said that measures to prevent sales at a loss are acceptable. The SWA has said repeatedly that we are ready to work with the Scottish Government on just such a legal, alternative and transparent mechanism to address alcohol harm. We would urge the Scottish Government to withdraw minimum pricing from the Alcohol Bill and hope that a consensus can now be reached on tackling loss leading sales of alcohol .”
New figures released today ( 8December 2009) show that more than 807 million bottles of Scotch whisky were shipped abroad during the first nine months of 2009. G lobal shipments grew by 1.5 per cent compared to 2008, despite recession, according to the export figures (January-September 2009) published by The Scotch Whisky Association (SWA) . Values were 3.5 per cent down on the previous industry record in 2008, r eaching £2.11 billion – the industry’s second best export value performance at the end of September. The SWA reported that despite weak economic conditions and trade de-stocking, which impact ed exports in the first quarter of the year, t he industry remained confident of future growth as international conditions improve. Gavin Hewitt, SWA Chief Executive, said: “After a tough first quarter, Scotch Whisky exports have performed well so far in 2009. We look forward to a good last quarter with the important Christmas and New Year period now in full swing. “Distillers have been resilient through the recession, investing for future opportunities and underscoring Scotch Whisky’s increasing importance to the domestic economy. Scotch Whisky exports – which already represent 20 per cent of Scotland’s manufactured exports – are showing the way in bringing the Scottish economy out of recession. ” The SWA reported that the international spread of Scotch Whisky export markets helped to mitigate the impact of weaker economic conditions in certain countries . Within the top ten markets , the value of exports to France, South Africa, and Venezuela increased. Shipment value to the United States, Spain and South Korea w as lower.
T he UK market continued to struggle with releases from bond down 11 per cent, raising further questions over the need for, and impact of, minimum pricing in Scotland. T he SWA pointed to the negative impact of trade barriers being introduced against Scotch Whisky overseas on the back of a Scottish precedent if minimum pricing was introduced in Scotland.
- ENDS - Note to Editors:
1. The SWA figures are derived from HM Revenue & Customs data and are based on individual company declarations of the export value and volume of shipments to each market (which may not be the final destination of the consignment). The figures do not represent sales/consumption of Scotch Whisky in those markets. 2. For further information please contact Campbell Evans (0 20 7629 4384 or 07768 002 262) or David Williamson (020 7629 4384 or 07730 496 151) at the SWA.
