Whisky Focus - Single Malt Whisky Exports Up 18% Diageo Comments

Single Malts Exports Up 18% Diageo Comments


1st April 2011

The Scotch Whisky Association announced this week that 2010 was a record year for Scotch Whisky. Global shipments were valued at £3.45bn, a 10% increase on 2009. Scotch Whisky exports have increased by 60% since the turn of the century, adding an extra £1.29bn in value.

Single Malt exports increased by 18% (to £577m) and bottled Blended Scotch Whisky shipments rose by 5% (to £2.6bn).

There was a comment from David Gates, Diageo’s global category director for Whiskies. He said:

"As the largest Scotch whisky producer, today’s SWA’s figures on the increase in Scotch exports come as no surprise.

"In the last financial year, we’ve seen our Scotch portfolio grow by 6% with the key driver of this growth being through Johnnie Walker in emerging markets where net sales grew 23%. Where economies are growing, Scotch is growing and sometimes spectacularly in markets such as Mexico, Eastern Europe, duty free and South East Asia through blended Scotch brands such as Johnnie Walker, J&B and Buchanan’s.

"Together these markets have driven almost an additional million cases of Scotch versus the same period last year.

"Diageo continues to invest in Scotch production and late last year opened the first major new malt distillery for 30 years – Roseisle – as part of a capital investment programme in Scotland of £600 million announced over the past 6 fiscal years."
 

Summary of Scotch Whisky Shipments


Summary of Scotch Whisky shipments by value on a regional basis 2010 (Source: Scotch Whisky Association):

North America (+20% to £608m)
The United States remained the industry’s largest export market by value (+19% to £499m). Encouraging growth was also experienced in Mexico (+41% to £59m), which is now Scotch Whisky’s 15th largest market.

Central & South America (-9% to £355m)
The Brazilian market continued to develop (+12% to £67m) and is now the 11th largest export destination by value. However, the overall regional figure was lower due to the negative impact of continuing economic and political challenges in Venezuela (-46% to £63m).

European Union (0% at £1.26bn)
Whilst the industry had another positive year in France (+4% to £422m), both Greece (-26% to £97m) and Spain (-15% to £268m) proved to be difficult markets due to the economic situation in those countries. Greek excise duty on Scotch Whisky, for example, was increased three times in 2010 as part of the government’s austerity measures.

Asia (+32% to £716m)
Exports to Asia experienced a strong year, with South Korea, a top ten market, returning to growth after a difficult 2009 (+36% to £153m). China continued to develop, with direct shipments up 24% to £55m.

Africa (+41% to £213m)
Exports to South Africa account for nearly 80% of shipments to the region. Scotch Whisky enjoyed another good year in South Africa, with shipments up 56% to £169m.

Australasia (+3% to £72m)
Australia is now ranked as the industry’s 12th largest export market by value, with shipments of £65m, up 2% in 2010.


 

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