Summary
The whisky industry is dealing with tough times due to tariffs and weaker demand in major markets like the USA and China. Tariffs on Scotch whisky entering the US might rise again next year, impacting sales. In response, demand for malted barley has dropped, affecting barley farmers as well.
Key Facts
- US tariffs on Scotch whisky were suspended but might increase by 25% next spring.
- Demand for whisky has also fallen in other markets due to higher taxes and packaging costs.
- Exports to China decreased by 31%, dropping China from fifth to tenth place in Scotch whisky markets.
- Whisky export value overall rose by 1% this year, but the amount of whisky exported fell by nearly 4%.
- New lower tariffs in India are promising but won't take effect for some time.
- The demand for malted barley from distillers has greatly decreased.
- Farmers in Scotland are shifting to other crops due to dropping demand for barley.
