SCOTCH WHISKY LOSES DECADE OF GROWTH IN 2020 TO COVID AND US TARIFFS

SWA FACTS AND FIGURES OF 2020: ANNUS HORRIBLIS

Global exports of Scotch Whisky fell by more than £1.1bn during 2020. The export figures are the lowest they have been in a decade, as the combined impact of Covid-19 and the 25% tariff in the United States hit distillers hard.

In 2020, the export value of Scotch Whisky exports fell 23% by value to £3.8bn. The number of 70cl bottles exported fell by 13% to the equivalent of 1.14bn.

The value and volume of exports to most of Scotch Whisky’s top 10 markets fell as countries went into lockdown to combat the spread of Covid-19 during 2020. The closure of hospitality and travel restrictions impacting airport retail globally saw export values fall in 70% of Scotch Whisky’s global markets compared to 2019.

Exports to the EU 27, the industry’s largest regional export market, fell by 15%.

It is the continued impact of tariffs by the USA on exports of Single Malt Scotch Whisky thereto that has caused the most significant losses. The United States is Scotch Whisky’s most valuable market, valued at over £1bn in 2019 when it accounted for a fifth of global exports.

In 2020, exports of Scotch Whisky to the US fell by 32% to £729m, a loss of £340m compared to 2019, and accounting for around one third of total global export losses.

The SWA celebrated with a silent song and dance when prize goof Diaper Don lost the US Presidency and the new President scrapped Trump’s cursed tariff early 2021.

The 25% tariff on Single Malt that the industry is forced to pay to the US is in large part a result of a continuing dispute between the EU, UK and US governments over subsidies granted to Airbus and Boeing.

The Scotch Whisky industry has now paid over half a billion pounds in tariffs on behalf of the UK government because of the subsidies that the government granted to the aerospace sector in breach of World Trade Organisation rules.

Export volume of Scotch Whisky in 2020 was the equivalent of 1.14bn 70cl bottles, down 12.6% compared with 2019.

Exports have fallen in 127 of 179 global markets.

Exports by value are now at their lowest level since 2010 when £3.48bn was exported.

Scotch Whisky exports to the US were valued at £1.07bn in 2019 – the industry’s first billion pound market.

Compared to Scotch Whisky, other spirits categories, including tequila, mezcal, Cognac and American whiskey, performed positively in the US market during 2020.

                                                                            TABLE 1

                                      TOP 10 EXPORT DESTINATIONS FOR SCOTCH WHISKY (BY VALUE) IN 2020 

COUNTRY	EXPORTS 2019	EXPORTS 2020	CHANGE %
USA	£1,069m	£729m	- 31.8
France	£432m	£375m	-13.1
Singapore	£300m	£247m	-17.6
Taiwan	£205m	£182m	-11.5
Latvia	£142m	£176m	+23.6
Germany	£185m	£139m	-24.9
Japan	£147m	£114m	-22.1
Australia	£117m	£113m	-03.17
Spain	£180m	£109m	-40.0
China	£89m	£107m	+20.4

TABLE 2

     TOP 10 EXPORT NATIONS FOR SCOTCH WHISKY (BY VOL 0.7L BOTTLES) 2020   

COUNTRY	EXPORTS 2019	EXPORTS 2020	CHANGE %
France	176 m Bottles	173m bottles	+01.5
USA	127 m	112m	-12.3
India	131 m	95 m	-27.8
Brazil	43 m	45 m	+05.7
Japan	60 m	45 m	-26.2
Germany	50 m	43 m	-14.3
Mexico	51 m	42 m	-17.9
Latvia	35 m	39 m	+11.9
Poland	33 m	37 m	+14.6
Spain	57 m	36m	-26.1

 TABLE 3

  SCOTCH WHISKY EXPORTS BY GLOBAL REGION (DEFINED BY VALUE) 2020

VARIATION AS PERCENTAGE OF GLOBAL EXPORTS
European Union	£1,256 bn	-15.1%	33%
Asia and Oceania	£998 m	-19.4%	26%
North America	£904 m	-29.6%	24%
LatAm and Caribbean	£260 m	-31%	07%
Africa	£137m	-22.0%	03.6%
MENA	£121m	-49.4%	03%
Western Europe (non-EU)	£93m	+11.5%	02%
Eastern Europe (non-EU)	£35m	-04.8%	01%