UK Scotch market shrinks by 3%

13th March, 2014 by Lauren Eads

The UK Scotch whisky market shrunk by 3% last year strengthening calls by the Scotch Whisky Association (SWA) to scrap an “unfair” super tax on spirits.

ScotchFigures published yesterday revealed that the number of 70cl bottles of Scotch whisky released for sale in the UK fell to 87.5 million in 2013, down from 90m the previous year.

The Scotch Whisky Association (SWA) has said this is further evidence that the Alcohol Duty Escalator (ADE), introduced in 2008, is damaging the UK whisky industry which it said is “vital to the economy” supporting some 35,000 jobs.

The ADE means that duty has automatically increased by 2% above the rate of inflation each year since 2008 with tax on Scotch whisky rising by 44% over five years and leading to 79% of the average priced bottle of Scotch to now be made up of tax and VAT.

The SWA, together with the Tax Payers’ Alliance and the Wine and Spirits Trade Association, launched it “Call Time on Duty” campaign earlier this year in a bid to convince the UK Government to scrap the ADE on wine and spirits and freeze duty in this year’s budget which will be set on 19 March.

Since the escalator was introduced, the UK market for Scotch whisky has declined by more than 15% in volume from 103m bottles in 2008 to today’s 87.5m.

David Frost, chief executive of the Scotch Whisky Association, said: “It’s obviously disappointing to see this decline in Scotch Whisky volumes in our domestic market. In next week’s Budget the Chancellor has the perfect opportunity to support a vital Scottish industry. He should scrap the unfair alcohol duty escalator and freeze duty this year. This move would also benefit consumers and public finances.

“Since the introduction of the escalator in 2008, the UK market for Scotch Whisky has shrunk by more than 15%. Fairer tax treatment would help address this decline in the UK. It would send the right message to overseas governments in markets where imported products, such as Scotch Whisky, face discrimination. It would also reflect and support the UK’s drive for export-led growth.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Job vacancies

Sales Account Manager

Jascots Wine Merchants
London, UK

Marylebone Sales Manager

Philglas & Swiggot
Marylebone, London, UK

Area Sales Manager

Bon Coeur Fine Wines
North England, UK

Procurement Assistant – Wine

Adnams PLC
Southwold, UK

Account Manager Central London

Speciality Drinks Ltd
London, UK

Brand Ambassador

Speciality Drinks Ltd
London, UK

National Business Development Manager

Speciality Drinks Ltd
London, UK

Marketing Assistant

Hatch Mansfield
Ascot, Berkshire, UK

Marketing Manager

Bancroft Wines
London, UK

Regional Sales Manager – Scotland

Bancroft Wines
London, UK

Sales Manager – London On-Trade

Bancroft Wines
London, UK

Customer Service & Sales Support Executive

Jascots Wine Merchants
London, UK

Market Insight Analyst

Conviviality PLC
London, UK

Technical Manager

Enotria&Coe
Park Royal, London, GB

The Global Sparkling Masters 2017

Deadline : 25th August 2017

The Global Malbec Masters 2017

Deadline : 25th August 2017

Global Chardonnay Masters 2017

Deadline : 1st September 2017

The Global Sauvignon Blanc Masters 2017

Deadline : 1st September 2017

Click to view more

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

The Global Organic Masters 2017

The drinks business is thrilled to announce the launch of The Global Organic Masters

The Drinks Business Awards 2017

Now in its 15th year, the db awards have become the most authoritative, internationally respected badge of achievement in the alcoholic drinks industry.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Click to view more