Sat, 13 Dec 2025

Sat, 13 Dec 2025 Whisky industry faces bleak midwinter as tariffs bite and exports stall

Tough economic forces are bearing down on whisky producers and the sectors which rely on them.
1. Decline in sales: The industry is experiencing a decline in sales, with some distilleries reducing production or shutting down temporarily. 2. Impact on jobs and investment: The downturn has led to job losses, stalled investment, and business closures, affecting the entire supply chain from farmers to hospitality venues. 3. Trade tariffs: The 10% tariff imposed by the US on Scotch whisky exports is a significant challenge for the industry, with some distilleries considering reducing production or changing their export strategies. 4. Duty on alcohol: The UK Treasury's duty on alcohol has increased, putting additional pressure on the industry, which is already struggling to maintain profitability. 5. Impact on farmers: The instability in the supply chain is affecting farmers who rely on Scotch whisky producers for a steady income. The Scotch Whisky Association (SWA) is working with farmers to develop more reliable contracts for barley. 6. Global demand: The industry is experiencing low visibility and uncertainty due to global macroeconomic and geopolitical volatility, making it challenging to predict future demand. 7. Prolonged downturn: Brown-Forman's update for investors suggests that the industry may be facing a prolonged downturn in demand, although this could also be due to warehousing or whisky bonds being full from high production levels in recent years. The article highlights the need for the industry and government to work together to address these challenges and support the Scotch whisky sector, which is a significant contributor to the UK economy.
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