Whisky Focus - Kilchoman & ImpEx Beverages Take The Hit On US Scotch Tariffs

Last month, the Trump administration announced damaging tariffs on all Single Malt Scotch Whisky, leaving members of the Scotch whisky industry wondering how this will impact their supply chain and their customers along the three-tier system. There is no doubt that Americans will purchase less Scotch due to the hefty 25% tariff, but Kilchoman and ImpEx knew that we could not just leave it at that.

"The tariffs are a big blow as in the last few years we have seen steady growth in sales. It is hoped they aren’t in place for too long so the impact doesn’t do long term damage." Kilchoman Distillery’s Founder and Managing Director Anthony Wills wrote.

Recently quoted in Whisky Advocate magazine (and parent company publication, Shanken News), Sam Filmus, President and Co-Founder of ImpEx Beverages, explained that he "airfreighted 19 additional pallets of Single Malt to last through the holiday selling season" As a boutique importer, he is "extremely concerned about how the tariffs will impact us, our suppliers, our prices, and, at the end of the day, the consumer that enjoys our whisky” Moving forward, Filmus and Wills agreed to swallow the cost of the tariffs, at least through next March, splitting it fifty-fifty to spare consumers from higher prices. “I think in the long run, it is going to be beneficial for the brand," Filmus says. "[It will allow] more people to get a hold of the bottles they’re shopping for."

Needless to say, a 25% increase is substantial for both companies’ profit margins, but Anthony and Sam– who will celebrate the 10 year Anniversary of Kilchoman’s launch in the US in 2020 along with 10 years of partnership– are focused on continuing the long term success of Kilchoman in the United States. There was no hesitation that stepping up for their customers at this time is the right call. These tariffs are the most recent reminder that the whisky industry is not immune to global political and economic forces, and the most recent opportunity for two leaders in our industry to come together and demonstrate their commitment to putting consumers first.

I am sure more than a few US Kilchoman whisky fans will raise a glass to the small family run Islay distillery. If you fancy raising a glass of Kilchoman yourself you will find the current Kilchoman whisky range available from specialist online whisky retailers such as The Whisky Exchange, The Whisky Shop and Master of Malt
 

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