Show Notes
“We’re going through a period of short-term volatility,” admits Mark Kent, CEO of the Scotch Whisky Association.
“Volatility which,” he says, “is partly to do with international trade conditions; partly to do with the domestic situation we find ourselves in.
“And you’ll know that we’ve had 17 percent duty increases; increases in energy costs, general costs of doing business at home, which is really acting as a brake on the industry.
“And then we’ve got tariffs and the US.”
A week ago HMRC, the UK’s tax agency, published the UK’s export statistics for 2025, including whisky which is the UK’s biggest food and drink export product.
“What these figures show,” Mark continues, “is we’re just under one percent down in terms of value across the world last year. And in terms of volume, we’re just over four percent down.”
That doesn’t sound too bad…
But, Mark cautions, “the big thing which sticks out is that since tariffs came into forces in the US, we’re 15 percent down in terms of volume that shipped to the US.”
Things may not have “fallen off a cliff”, as Mark puts it. “But at the moment,” he acknowledges, “we’re going through very choppy seas.”
“You just have to read the papers to see news about job losses, cutbacks in production, maltings which are closing. This is real stuff and this is affecting the Scottish economy and rural communities in particular.
“When I go and meet with farmers, they say: ‘What’s happening with India? What’s happening with the US? Because we’re getting less orders through for the malting barley…’ for example.
“And then you look right through the production chain to the hospitality industry. Hospitality is being hit. Tourism is being hit.”
So what does Mark make of report in the Scotsman newspaper that “almost one in five of all Scotland’s distilleries is in financial distress”?
“I read that; and I can quite believe that anecdotally, because when we speak to our members, they are very concerned and there are real issues.”
And these issues – or “headwinds” as Mark describes them – impact the entire supply chain.
Join John as he explores the state of the Scotch whisky industry with the man at the helm of its trade association.
Find out who’s most at risk.
Discover what Government interventions Mark believes will most help the sector.
And find out why, despite all his concerns, Mark is "still very confident about the long-term potential of the industry."
“I was having a discussion with somebody,” Mark concludes, “and I said, ‘I’m not an optimist. I’m not a pessimist. I’m a realist. And think that’s what we have to be. And we have to say things they are.
“I go back to how we started this. Long term, the potential is still there. We’ve got a great industry. It’s not going to go away. We’re going to see markets continue to grow.
“What we have to do is ensure that we have the support necessary to get to that longer term potential.”
Slàinte! ------- Socials: @C2GWhisky | @JohnRossBeattie
Creator & producer: David Holmes Art work & design: Jess Robertson
Music: Water of Life (Never Going Home) Vocals: Andrea Cunningham Guitars: John Beattie Bass: Alasdair Vann Drums: Alan Hamilton Bagpipes: Calum McColl Accordion: Gary Innes Music & Lyrics: Andrea Cunningham & John Beattie Recorded & mixed by Murray Collier at La Chunky Studios, Glasgow, Scotland
Special thanks: The Piper Whisky Bar, 57 Cochrane Street, Glasgow, Scotland Hosted on Acast. See acast.com/privacy for more information.
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