Scotch Whisky is an iconic product recognised around the globe and new research published today (28 January) reveals its vast contribution to economic growth in Scotland and across the UK.
‘The Economic Impact of Scotch Whisky Production in the UK’ report, commissioned by the Scotch Whisky Association (SWA) from 4-consulting, shows the industry contributes nearly £5 billion overall to the UK economy. For every £1 million of value added, the industry generates another £520,000 across the UK, for example in spending on suppliers in a range of sectors, from packaging to haulage.
In terms of the value it adds to the UK economy, Scotch Whisky is bigger than a number of industries, such as iron and steel, textiles, shipbuilding and computing. It is also larger than other UK food and drink sectors, including meat, dairy, beer and soft drinks. In Scotland, it makes up almost three quarters of the food and drink sector and is three times the size of Scotland’s digital or life sciences industries.
Key findings of the report include:
•Overall economic contribution of Scotch Whisky industry to UK is almost £5bn (£4.956bn).
•Direct economic impact of industry, ignoring its wider economic benefits, is £3.3bn, up 21% since 2008.
•Each year, Scotch Whisky producers spend £1.8bn on suppliers. 90% of that expenditure is in the UK, including £1.4bn in Scotland. Dry goods, including bottles and packaging, cereals, energy and transport and distribution make up the majority of purchases.
•Capital expenditure makes up £140m of the total industry spend. Some 70% of that is outside Scotland in other parts of the UK and overseas. The specialist nature of capital equipment, such as machinery, vehicles and software, means it often has to be sourced from further afield, spreading the impact of the Scotch Whisky industry across a wide geographical area.
•The industry supports 40,300 jobs in the UK – up from around 35,000 in 2008 – in a range of sectors including glass manufacturing and labelling. This total includes 10,900 people directly employed by the industry in Scotland, up 6%.
•Every job in Scotch Whisky supports a further 2.7 British jobs.
•Scotch Whisky workers are among the most productive in Scotland – they are around four times as efficient in production as employees in aerospace, life sciences and the digital sectors.
As well as supporting employment in towns and cities, for example in large bottling halls, Scotch Whisky is the lifeblood of many rural communities where it sustains 7,400 jobs, contributes around £900m in gross value added (GVA) and generates around £250m of income.
Despite a slowdown in exports, the Scotch Whisky industry is expanding at unprecedented levels with around 30 new distilleries being planned or built across Scotland. Capital investment reached £142m in 2013, up 31% since 2008.
Finally, Scotch exports are vital to the UK’s balance of trade. They are worth around £4bn a year and without them the UK’s trade deficit would have been 16% larger in 2013.
David Frost, Scotch Whisky Association chief executive, said: “This new report shows just how significant the Scotch Whisky industry is to the wider UK economy, adding £5bn of value, supporting over 40,000 jobs, and contributing £4bn to Britain’s trade performance.
Scotch Whisky must be recognised as a cultural asset that boosts growth and jobs, supports communities and combines the best of the traditional and the modern.
“Given the scale and impact of the Scotch Whisky industry we believe the government should show its support. One way of doing so, in the short term, would be for the Chancellor to cut excise duty by 2% in the March Budget. It is unfair on the industry and consumers, and detrimental to the economy, that almost 80% of the average price of a bottle of Scotch is taxation.”
With media enquiries, please contact: Rosemary Gallagher, SWA communications manager, 0131 222 9230 or 07432 605 385 or firstname.lastname@example.org or David Williamson, SWA government and communications director, 0131 222 9226 or 07730 496151 or email@example.com
A full copy of the report is available here /media/70534/economic_impact_20pp_web_v2.pdf
See a short film on the report here http://vimeo.com/117789170
Gross Value Added (GVA) measures the contribution to the economy of each individual producer, industry or sector in the United Kingdom.
Gross Domestic Product (GDP) is a key indicator of the state of the whole economy. In the UK, three theoretical approaches are used to estimate GDP: ‘production’, ‘income’ and ‘expenditure’.
Scotch Whisky’s £5bn (£4.956bn) GVA includes direct, indirect and induced impacts. Its direct GVA is £3.3bn (£3.261bn).
To find out more about the ‘Drop the Duty!’ campaign to have excise cut by 2% visit www.droptheduty.co.uk and follow it on Twitter @droptheduty
Article provided by The Scotch Whisky Association (SWA) – http://www.scotch-whisky.org.uk/
28th January 2015
Whatever your reasons for touring Scotland in 2015, ensuring you find the place that’s right for you to stay will inevitably be a consideration. Like with so many areas of Scotland, the Isle of Skye offers both scenic natural beauty, dramatic landscapes and is home to its sole whisky distillery, Talisker. As well as this, Skye is home to Sligachan Hotel, a favourite among many outdoor enthusiasts, happy couples enjoying their big day or simply those more discerning about their whisky choice.
Situated on the banks of Loch Sligachan and at the foot of Black Cuillin, Sligachan offers the perfect Highland retreat. For more information see: Sligachan Hotel
As we enter another year, Malt Marketing continues its own development in the pursuit of becoming the number 1 online choice for marketing whisky shops, bars, festivals and more. In just over 2 years, Malt Marketing has introduced visitors to some of the very best whisky shops, online retailers, auctions and whisky bars. As well as this, Malt Marketing has helped market and promote whisky festivals as far afield as London, Sydney and Cape Town to San Francisco and Las Vegas.
2015 will see Malt Marketing continuing to bridge the gap between the world’s most passionate whisky consumers and the very finest establishments to purchase, sample and experience whisky. To market and promote with Malt Marketing in 2015, contact: firstname.lastname@example.org
The first whisky shop of its kind in the UK, Hard To Find Whisky (HTFW) is located in Birmingham’s historic Jewellery Quarter, an easy ten minute walk from the city centre and New Street and Snow Hill Stations, or two minute’s walk from the dedicated Jewellery Quarter station.
With parking right outside the shop and comfortable seating inside people can really enjoy the HTFW experience. With the largest collection of whiskies in-store than any other retailer in the county, HTFW boasts 3,000 bottles out on display, with 100’s of those from silent distilleries.
Priding themselves in their rare and collectables range, HTFW also stock all the latest releases from the world’s most well-known brands. With prices starting at £25 for an entry level single malt and going up to £35,000 for a rare Macallan 50 year old.
With an excellent range of miniatures, whisky gifts and glassware, HTFW also offer 14 unique, in-store master classes which are available as walk-ins, for pre-booked groups or to purchase as gift vouchers. These are taken by their in-house experts and are available for individuals and up to groups of 20 people. At a cost of £20 per head for a beginners guide to whisky increasing to £1,000 per head for a chance to try some really rare Port Ellen bottling’s as part of the ‘Whiskies Most Wanted’ class.
For more information see:
Edrington has marked the official start of works on its iconic new distillery and visitor centre for The Macallan.
The Macallan is one of the core brands of Edrington, Scotland’s premier producer and distributor of global spirits brands.
Edrington Chief Executive, Ian Curle was joined on site at The Macallan estate in Speyside by Bill Robertson, Executive Chairman of Robertson and Graham Stirk, Partner of Rogers Stirk Harbour + Partners, to mark the occasion.
Ian Curle said: “Today represents an exciting new chapter for Edrington and a major step in The Macallan’s long term commitment to be the leading premium spirit in the world. The collaboration between Rogers Stirk Harbour + Partners (RSHP), Robertson, and Forsyths brings together one of the world’s leading architects and the elite of Scottish craftsmen. Over the next three years we will bring The Macallan brand experience to life in a truly unique style.”
Bill Robertson said: “We are delighted to officially commence works today. The site will be dramatically transformed over the coming months as the iconic distillery and visitor centre starts to take shape. By understanding the vision of The Macallan and working in partnership with them, RSHP and Forsyths, we will deliver a truly beautiful and inspirational building.”
The new facility received planning permission in August this year and the project will deliver significant benefits to the national and local economy.
Designed by RSHP to complement the natural beauty of the area and The Macallan Estate, which overlooks the River Spey, the new home of The Macallan is scheduled to open to the public in spring 2017.
Graham Stirk, lead architect and Partner, RSHP, said: “Our design for the distillery and visitor centre celebrates the whisky-making process as well as the environment that has inspired it. The design is essentially a series of a grass-covered undulating roof forms that are sympathetic to this Area of Great Landscape Value. Together we are creating a bespoke building for The Macallan that will further enhance the visitor experience whilst ensuring the on-going quality of this unique Single Malt.”
Ian Curle concluded: “Respected local crafts and skills are at the heart of The Macallan’s uncompromising approach to quality, and we are very pleased to be working with both Robertson and Forsyths to write the next chapter in the history of The Macallan.”
For Further Information:
Adele Joyce, Brand Team Project Manager – Macallan Expansion, The Macallan
07584 217 162
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