Could the UK-India Trade Deal Transform the Scotch Whisky Industry?
The imminent UK-India trade deal could be a game changer for Scotch whisky!
According to Jean-Etienne Gourgues, Chairman and CEO of Chivas Brothers, if the removal of the 150% import tax on whisky is approved following the current discussions over the UK and India’s forthcoming Free Trade Agreement (FTA), this means huge potential for the industry. He predicts that it could double the size of the market for Scotland’s beloved spirit – Scotch Whisky – in just 5 years.
In the recent interview with the CEO of Chivas Brothers by The Spirit Business, Gourgues indicates that its brands Ballantine’s and Chivas Regal would take centre stage for business in India. He also indicates that there but there is an exciting opportunity for “innovation for prestige luxury whiskies”.
The article goes on to reveal that Chivas Brothers, the Scotch whisky arm of the firm, had a remarkable six months with an impressive 23% organic sales increase! These stellar results are thanks to their signature whiskys like Chivas Regal and Ballantine’s which experienced growths of 34%, 17 % respectively. Royal Salute hit a staggering 37% increase while The Glenlivet increased by 12%.
With growth fuelled by a combination of established and newly emerging markets, soaring at an impressive 22% and 24%, respectively. Premiumisation has also been key in driving the distiller’s success with a 28% increase within “prestige” products range!
Gourgues went on to share more on emerging markets. Countries include Brazil with a rise of 40%, Mexico with a 21% increase, and India with a growth rate of over 25%.
Latest reports indicate that the FTA talks may conclude at the end of March 2023. So, watch this space and we’ll keep you updated on the latest developments of the trade deal.
Scotch whisky market perfect for investors
So, if the FTA progresses as indicates, then the Scotch Whisky market could be set to increase in size in only 5 years and so provides a really great investment opportunity right now.
We hope this article has been enlightening and inspiring as you research your own Whisky investing opportunities. To find out more about investing in whisky and to make sure you get ahead of the curve, be sure to check out our latest articles on our website for insights on the subject.
So, get researching, but don’t forget have a wee dram while you’re at it!
And, if you’re ready to discuss Scotch Whisky Investments further, get in touch with our team of whisky experts.
