Minimum price 'could harm whisky'

Jan 25 2012

The Scotch whisky industry could suffer a "serious downturn" as a result of minimum pricing, an academic warned.

Dr David Wishart, a researcher from St Andrews University, said the measure would be "a massive shot in the foot for our most successful industry".

He said the cost of a bottle of blended Scotch whisky was estimated to rise by £3.50, leaving the drink "seriously disadvantaged" in the domestic market.

Dr Wishart further warned minimum pricing could pave the way for "swingeing taxes" on Scotch overseas.

He said: "Scotch whisky is the top export from Scotland, with distilleries being reopened and newly built from Annan to Elgin to Lewis.

"Our industry, which currently employs 40,000 directly and many more indirectly, could be set for a serious downturn."

The academic, who has researched the histories and profiled the whiskies of 100 distilleries throughout the UK, said: "The tax on alcoholic drinks is set to increase later this year, regardless of the Budget, if the Alcohol (Minimum Pricing) (Scotland) Bill is passed at Holyrood.

"It is estimated that a bottle of blended Scotch whisky will rise by £3.50 in Scotland from this summer.

"Aside from the impact on the domestic market, where Scottish retailers will be seriously disadvantaged, it will give immense succour to several export markets when they come to review their duties on Scotch whisky."

Dr Wishart said exports of Scotch whisky had increased by 22% last year, to £3.5 billion. He added that exports to Singapore rose by 64%, with a 56% increase in the amount of whisky sent to Brazil and a 45% rise in exports to Taiwan.