Whisky Exports Break £3 Billion Barrier

[John]

Scotch exports show international resilience
- Global exports up 8% in 2008, breaking £3 billion barrier for first time.
- Exports earned £97 a second for the UK balance of trade.
- Industry predicts challenging 2009 but remains confident on long term
prospects.

Scotch Whisky exports reached a new high of over £3bn in 2008, underlining the industry's vital importance to the Scottish and wider UK economy. In new figures published by The Scotch Whisky Association (SWA), the value of shipments increased by 8% to £3.06bn, earning £97 a second for the UK last year. For the fourth consecutive year, both bottled Malt (+9% to £497m) and bottled Blended Scotch Whisky (+9% to £2.43bn) exports increased in value. The increase in value was achieved despite a 5% reduction in export volume, reflecting the industry's investment in premiumisation in recent years. Overall, the equivalent of 1,080 million bottles of Scotch Whisky were shipped overseas, the industry's second best ever volume performance. The annual figures showed Scotch Whisky to be recession-resilient but not recessionimmune.

The industry was impacted by difficult economic conditions, particularly in the last quarter. A challenging 2009 is predicted due to weaker consumer confidence and some stock adjustments in a range of markets as a result of the economic downturn. Paul Walsh, Chairman of The Scotch Whisky Association, said: "Scotch Whisky exports have proved to be resilient in the face of difficult economic conditions in a range of markets. To achieve record export value at such a time is quite an achievement and underscores just how important the industry is to the UK economy. I am convinced that the major investments made by distillers will stand us in good stead for the return to better economic times. As that happens, whisky will play a leading role in exporting the economy out of recession."

Gavin Hewitt, Chief Executive of the SWA, said:
"Building on the industry's impressive performance in 2008, the Association is optimistic
about Scotch Whisky's long term international prospects, despite difficult market conditions in the year ahead. Our prospects are also shaped by the actions taken by government. At a time of recession, we look to government to work with us and to show its support for the Scotch Whisky industry at home and overseas."

John