Chancellor urged to cut tax at home to boost global success story
Scotch Whisky exports increased in value by 3.4% in the first half of the year to £1.8 billion, boosted by the continuing growth in popularity of Single Malts across the globe, including the USA, the industry’s largest market.
This growth benefits the entire UK economy and its export performance. Scotch remains Britain’s biggest food and drink export, making up almost a fifth of the sector’s overseas shipments.
The analysis of official HMRC figures published by the Scotch Whisky Association (SWA) today shows consumers are continuing to sample more Single Malts with exports up 7% to £479 million in the first six months of the year. Single Malts now make up more than a quarter of the value of all Scotch shipped overseas.
This trend was clear in the USA where total Scotch exports were up 8.6% to £388m and Single Malts jumped 14% to £123m.
Scotch exports to many other mature and emerging markets increased. There was a marked return to growth in China – up 45% to £27m as the country’s economy grows – and exports to Japan expanded 19% to £43m.
The European Union (EU) remains the biggest regional destination for Scotch with the value of exports up 4% to £559m, almost a third of the total.
But the Scotch Whisky industry needs support to sustain growth in the long term, not least as it manages the impact of Brexit. Overall, the volume of whisky shipped overseas was down 2% to 528m bottles, and this was in the context of relatively favourable exchange rates. The lower volume and higher value is partly as result of the shift to Single Malts.
Some markets declined in the face of continuing economic and political headwinds, such as Brazil where the value of Scotch exports fell 20% to £22m.
The SWA argues that a strong home market is required to underpin the industry’s global success and that Chancellor Philip Hammond could help next month by cutting tax on an average bottle of Scotch from an onerous 80%. Recent figures show that the UK market has shrunk as excise duty has increased, with a near 4% hike in the March Budget seeing Scotch sales fall by 1m bottles in the first half of 2017. A fairer domestic excise regime would help boost a world-famous industry which supports 40,000 jobs across the UK.
Such support at home would also encourage long-term confidence and underpin continued investment in the industry and supply chain that, in turn, relies on export success.
And one of the SWA’s priorities for Brexit is domestic reform to improve competitiveness, including changes to the current excise duty system.
Karen Betts, Scotch Whisky Association chief executive, said:
“The value of Scotch Whisky exports was up more than 3% in the first half of this year to £1.8 billion, which is great news. More and more consumers around the world are seeking out the fabulous range of Single Malts. It is good to see demand for Scotch increasing in a diverse range of mature and emerging markets around the world.
“But the figures mask more concerning underlying trends. The value of exports is up but the volume is down. With the changes Brexit will bring to the way the industry operates and trades, we need the support of the UK Government at home and overseas if we are to grasp the opportunities and keep this international success story going.
“Overseas demand for our quality product requires investment by the industry in the UK and that needs government support. A strong domestic platform for growth is vital and the Chancellor could take a step in the right direction in next month’s Budget by cutting the tax on an average priced bottle of Scotch from the staggering level of 80%.”
The Macallan has unveiled Edition No.3 – a new limited edition whisky. This third release in the innovative Edition Series is a dynamic and highly original collaboration between The Macallan’s Master Whisky Maker, Bob Dalgarno and Master Perfumer, Roja Dove uniting the worlds of whisky and aroma to reveal the complexities of single malt character.
Continuing the diverse story of The Macallan’s oak casks and obsession with wood, the focus has remained on the commitment introduced with Edition No.1 and Edition No.2 to unlock the intricate workings of the whisky making process. Edition No.3 exposes the detail of its creation for true transparency, and showcases the absolute skill of the Master Whisky Maker.
While Edition No.1 and Edition No.2 highlighted the influence each cask has on the taste and flavour of the final whisky, Edition No.3 provides an insight into the distinctive aromas that combine to build character and depth and create a multi-sensory experience of taste and aroma.
From defining life experiences to the recall of special memories, the power of aroma is unquestionable and it is this power which makes the approach to Edition No.3 truly mesmerizing, as Roja Dove and Bob Dalgarno embarked on a sensory journey of discovery.
As one of the world’s most respected Master Perfumers whose brand Roja Parfums is at the pinnacle of the fragrance industry, Roja Dove provided his remarkable sensory knowledge and experience to describe distinctive aromas in particular oak casks. Subsequently, Bob Dalgarno utilised this articulation of aromas to select dominant notes to help shape the final character of Edition No.3.
The Macallan’s exceptional oak casks are the single greatest contributor to the outstanding quality, natural colours and distinctive aromas and flavours of The Macallan and the use of a higher proportion of smaller casks in Edition No.3 increased the contact between the spirit and the wood, delivering an intense experience of flavour and aroma.
Crafted from a combination of European and American oak casks, Edition No.3 balances a heavier base derived from Tevasa casks and reflective of The Macallan character, with the fresh cut oak and citrus of Hudosa casks, the vanilla ice cream and sweet, crisp green apple flavours of bourbon casks and the dry, floral and vanilla notes from European and American oak refill casks.
Bob Dalgarno, The Macallan’s Master Whisky Maker, said: “Inspiration and innovation lie at the heart of The Macallan and in Edition No.3 we have collaborated with one of the world’s most respected aroma experts to create a single malt whisky which pushes the boundaries and challenges convention.
“The Edition Series provides the freedom to look beyond the cask styles typically used in other Macallan whiskies. There are great parallels between the worlds of whisky and perfume and it has been fascinating to work with Roja to explore the power of aroma in individual oak casks and its influence on the resulting whisky. Edition No.3 is a remarkable journey of the senses, delivering an intense experience of flavour and aroma.”
Roja Dove, Master Perfumer, said: “On the surface it would seem that Bob and I came from disparate worlds. From the beginning it was obvious we shared much in common which we have explored and developed in many different ways. The inevitable culmination of this collaboration was the creation of Edition No.3. We have worked together to master the balance of taste and aroma, resulting in an incredibly flavoursome, fresh and citrus whisky with enveloping sweetness. Edition No.3 is an exceptional example of the whisky maker’s art, where Bob has interpreted my thoughts so accurately, when combined with the extraordinary power of scent.”
With an ABV of 48.3%, Edition No.3 is a sensory journey of flavour and aroma intimately entwined. Presenting a sweet and fruity character, it brings to the fore notes of vanilla, fresh cut oak, delicate florals and rich fruit cake. An alluring whisky that challenges expectations and reflects the artistic genius of the collaborators who united to curate this distinctive single malt.
The Macallan Edition No.3 will be priced at £78.
For further information visit www.themacallan.com
Colour: A natural colour of Barley gold
Aroma: Reminiscent of a fine fragrance, the nose leads with vanilla ice cream, fresh cut oak and delicate florals. Orange oil provides subtle grandeur while ginger, cinnamon and nutmeg flit in and out. Vanilla imparts sweetness, leading citrus fruits forward then allowing chocolate to show. Burnished oak delivers a soft ending.
Palate: A sensory journey of flavour and aroma intimately entwined, the palate is sweet fruit and vanilla and rich fruit cake with suggestions of apricot, pear and crisp green apple. Hints of ginger and cinnamon are balanced with a light resinous oak finale.
Finish: The finish is long, sweet and fruity, leaving a lasting impression on the senses.
For further information, please contact Hope&Glory PR:
James Bunting: firstname.lastname@example.org / 020 3588 9741
Alex Royce: email@example.com / 02035889722
Founded in April 2014 and listed in Malt Marketing’s whisky directory, The Whisky Market Limited has grown from a modest private client base and now has over £2,000,000.00 of single malt Scottish whisky casks under management. The decline in global markets and alternatives in general forced many people to look elsewhere for value and a tax efficient hold.
Over the last 3 years, The Whisky Market Limited has been working with a very unique type of asset for a select clientele allowing them to access a piece of Scotch history by owning casks of Single Malt Premium Scotch Whisky.
Current independent reports are showing typical returns are around 7 – 12% per annum for holding Scotch whisky casks over the last 9 years.
On top of growing demand and great returns, Whiskies held in casks are exempt from both VAT and more importantly, Capital Gains Tax, ensuring all profit from cask ownership will be yours to keep!
First released in April 2008, HIGHLAND PARK 40 Year Old is batched in very small quantities with only 10 casks selected for each bottling – it’s the culmination of years of whisky-making knowledge and experience.
Described in Whisky Magazine as ‘an incredibly well drinking Highland Park… sharing some of the 18 Year Old’s refinement but taking it into a different league’, our 40 Year Old is both highly complex and beautifully balanced, a rich and luxurious single malt at once deep, aromatic and smoky, yet singing with the sweetest notes of soft toffee, dark chocolate and fragrant orange zest.
ABV: 48.3% | Volume: 70cl
The Macallan 25 Year Old Anniversary Malt is a very rare bottling which shows off Macallan single malt in a well-matured, superbly Sherried fashion. This fantastic whisky comes in a handsome wooden case to house and present the whisky as you lovingly gaze upon it – Buy Now
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