Whisky by Time News Round Up – October 2024
In this October Round Up, we bring you Autumnal whisky news from across the globe.
We share the latest export figures and ‘ask’ from the Scottish Whisky Association, explain how a UK-Thailand trade deal is a win for Scotch whisky, report on the sectors progressive response to sustainability and highlight an interesting brand partnership with sees Jonnie Walker team up with Netflix’s iconic Squid Game. We also remind you of the investment opportunities around peat whisky.
We hope you enjoy it, and as ever, if you have a question about whisky cask acquisitions no matter how big or small please don’t hesitate to get in touch with a member of a team.
Have a great October.
Oliver O’ Donovan
Scottish Whisky Association (SWA) releases new export figures for first half of 2024
Ahead of the October Budget the SWA has called on the new UK Government to redouble efforts to conclude the UK-India Free Trade Agreement. The phased reduction of the tariff would benefit industries in both the UK and India and could see the value of Scotch Whisky exports grow by £1bn over five years.
Commenting on export figures in the first half of 2024, SWA Chief Executive Mark Kent said:
“We are a resilient industry, exporting to over 180 markets, and are experienced in navigating such periods of turbulence, and we are confident of the long-term growth opportunities for Scotch Whisky. It is welcome that the UK government has picked up negotiations on a UK-India trade agreement. Exports to India have been a bright spot in the first half of 2024, despite the current 150% tariff being a brake on future growth. Securing a deal which reduces the tariff would be a major boost to the industry and help to mitigate the impact of a slowdown in other global markets.”
By value, the United States remains the largest global market in the first half of 2024. By volume, India is the largest market, with growth of 17.3% in the first half of 2024 compared with the previous year. This is despite the current 150% tariff on imports remaining in place. In the first quarter of 2024 36 bottles of Scotch Whisky are exported every second.
Read more here https://www.scotch-whisky.org.uk/newsroom/scotch-whisky-exports-in-first-half-of-2024-reflect-global-economic-headwinds/
UK-Thailand trade deal is a win for Scotch whisky
Thailand has signed a trade deal with the UK designed to boost trade and investment between the two nations and open the country up to British businesses, and Scotch is set to benefit.
UK trade minister Douglas Alexander has signed the pact alongside Thai commerce minister Pichai Naripthaphan in Bangkok on 18 September.
The UK and Thailand also recently also made it much simpler for Thai companies to import UK food and drink. Businesses can now submit conformity documentation by email instead of the time-consuming process of getting paperwork physically stamped by the British Embassy. Removing this barrier will be worth around £40m-£70m to UK businesses over five years, the UK government has said.
Thailand is the second-biggest economy in Southeast Asia and trade between the UK and Thailand is already worth £5.9 billion a year. The Thai economy is rapidly growing and its middle class is expected to more than double to almost 14 million by 2030, creating huge opportunities for UK businesses to tap into.
Emily Roads, Head of Trade – Asia Pacific at the Scotch Whisky Association, told The drinks business:
“Worth £33m in exports in 2023, Thailand is important growth market, located in the fastest growing region by volume in the world for Scotch whisky. The industry welcomes the ETP, which will strengthen the UK-Thailand trading relationship. We look forward to working with the UK and Thai governments to realise the opportunities it can provide to improve market access for Scotch whisky into Thailand.”
The investment potential of peat whisky thanks to new legislation
We’ve written to all our clients to flag the investment potential of peat whisky. The key thing to note is that from 2030 the production of peat whisky will cease when the Scottish Government introduces legislation to ban the use of peat because of its’ impact on the environment. This means peat whisky casks will inevitably increase in value because of the limited supply.
Peat whisky has been having a moment for some time particularly in the Asian markets. Its’ popularity can be attributed to a number of factors;
- A unique smoky flavour;
- Artisan appeal
- Increasing global demand
- and cocktail culture.
Mixologists and bartenders have embraced its complex notes to create stand-out and in some cases award winning cocktails. In Asia for example, it’s not unusual for a bespoke whisky cocktail to be created for a wedding toast – replacing champagne.
Diageo launches first 70cl paper-based bottle on-trade trial for Johnnie Walker
Not something we ever expected to see but it definitely proves the drinks sector is taking sustainability seriously. On the 24th September Diageo, announced a first-of-its-kind 90% paper-based bottle trial for Johnnie Walker Black Label exclusively at Johnnie Walker Princes Street’s 1820 bar, in Edinburgh.
The trial will assess how bartenders interact with and pour from the bottle, and how the bottle fares in a bar environment. A total of 250 paper-based bottles will be used with the trial expected to run until mid-October. Members of the public will be able to see the bottles in use behind the bar, however they cannot purchase the bottle.
Whisky Live London to return in 2025
Whisky magazine reported on the return of Whisky Live London for 2025. Celebrating its 25th anniversary of bringing together whisky lovers from all over the globe.
Whisky Live London will take place from Friday 28 to Saturday 29 March 2025, making its much-anticipated return to the Fireworks Factory at Woolwich Works.
For more information and to book your ticket, visit www.whiskylive.com.
And finally, Johnnie Walker launches a limited-edition version of its Black Label inspired by Squid Game
Many of the drinks press include Drinks Business reported on the Johnnie Walker Squid Game partnership. Ahead of the premiere of the second season of Squid Game later this year, Diageo-owned Johnnie Walker has launched a limited-edition version of its Black Label blended Scotch whisky inspired by the hit Netflix series.
Commenting on the collaboration Johnnie Walker Vice President Josh Dean said;
“This partnership brings together two global icons, the world’s number one Scotch whisky and the worldwide TV phenomenon of Netflix’s Squid Game. Our loyal fanbases are going to be thrilled by the element of discovery with our collectable, limited-edition bottle design that allows them to get close to the action.”
The first season of Squid Game, uploaded to Netflix in September 2021, became the streaming platform’s biggest show of all time, raking in a staggering 1.65 billion hours of viewing within 28 days of its premiere. The highly-anticipated second series premieres on 26 December this year.
South Korea, the country which produced the show, is, according to figures from the Scotch Whisky Association (SWA), the 15th biggest market for the spirit by value, with the 2023 value 67% above the pre-pandemic figure. In terms of volume, 14.3m bottles (70cl in size) were exported to the country last year. Some reports suggest that it is the fastest growing whisk(e)y market in the world.
Read more here
https://www.thedrinksbusiness.com/2024/10/johnnie-walker-teams-up-with-squid-game/
