Successfully selling the Scotch whisky story overseas

For the year to date to the end of September 2025, exports by value were £3.96bn, down 0.3 per cent. By volume, 982 million 70cl bottles were shipped overseas in the first three quarters of the year, down 5.7 per cent.

The Scotch Whisky Association (SWA) has pointed to a combination of pressures on consumer spending, increased domestic tax and regulation, and turbulent global trade all impacting exports.

Challenges in the US market

The US remains the biggest market by value for Scotch, worth £971m last year, but that was down 0.7 per cent on 2023. The 10 per cent tariff imposed by the US Government on some imports, including Scotch, is having an ongoing negative impact on the industry.

Commenting on ongoing discussions regarding US/UK trade, SWA chief executive Mark Kent says: “The 10 per cent [US] tariff is costing the industry almost £20m a month in lost exports, and over a thousand jobs have already been shed in the last year in Scotland alone.

“The Scotch whisky and American whiskey industries have both benefitted from zero-tariff trade over the past three decades and we urge governments to reach a zero-for-zero deal as soon as possible – an outcome which will benefit industries and communities on both sides of the Atlantic.”

Chris Swonger, president of trade body Distilled Spirits Council of the United States says: “The spirits sector is a model of fair and reciprocal trade, and we remain committed to working with the Trump Administration to help get distilled spirits products get back to permanent zero-for-zero tariffs with our key trading partners.”

Closer to home, despite a campaign from the drinks sector for alcohol duty to be frozen in last month’s UK Budget, a Retail Prices Index inflation increase was announced by the Chancellor to the dismay of the whisky industry.

As Mark explains: “Increasing global and domestic pressures led our industry to ask for duty in our home market to remain unchanged. Not a tax cut, not a handout, simply breathing room for a critical Scottish industry. Government has chosen to ignore those warnings, to the detriment of distillers, of bars and restaurants, our farmers and suppliers, and ultimately of growth.”

Optimism for the India market

But there was some welcome news for Scotch whisky exports with the signing of the UK-India Free Trade Agreement (FTA) in July, which will lower trade barriers between the two countries.

The FTA has significant benefits for Scotch by slashing India’s high import tariffs. The 150 per cent duty is being cut in half to 75 per cent, with further reductions to 40 per cent in the coming year. This makes high-quality Scotch more accessible to the Indian population and is expected to give a massive boost to whisky exports and create jobs in Scotland.

The deal has been described as “transformational”. It is set to unlock India, the world’s largest whisky market, for greater sales and premiumisation, with potential for £1bn annual growth for Scotch.

In October, a Prime Minister-led trade mission to India highlighted the benefits of the deal for Scottish businesses, including whisky. Scottish secretary Douglas Alexander and representatives from the whisky industry joined the trade mission.

Douglas said: “The historic trade deal the UK Government struck with India this year is great news for Scotland and especially our whisky industry. But, having secured the deal, our challenge and responsibility now is to put this deal into action. That requires implementation of the deal by the governments of India and the UK, and the utilisation of the deal by British and Indian businesses.”

He added: “Over the last year, as Trade Minister, I’ve worked closely with the Scotch Whisky Association and other Scottish businesses. I understand the challenges they face and that this deal with India could be transformative for the industry over the long term.”

New developments showing hope for the future

Investment in the industry continues with new distilleries being developed –tangible signs of confidence in the future.

For example, a new whisky venture from the founders of Thurso-based Dunnet Bay Distillers, producers of award-winning Rock Rose Gin, has led to the completion of a local landmark. The long-awaited restoration of Castletown Mill has officially been completed and is now home to Stannergill Whisky.

To celebrate this milestone, Dunnet Bay Distillers launched a crowdfunding campaign inviting whisky fans and enthusiasts of Scottish heritage to become part of the next chapter in the story. It will help fund the construction of a new maturation warehouse and support the expansion of the team. In return, members will gain access to exclusive Stannergill experiences and limited-edition releases.

Martin Murray, founder of Dunnet Bay Distillers, says: “I’ve driven past the Mill for more than 25 years and always dreamed of bringing it back to life. Back in 2008, I enquired about purchasing it with a view to restoring it to a whisky distillery. It wasn’t possible at the time, but I didn’t let go of the idea and, although it’s taken nearly two decades, it’s great to see this idea finally become reality.

“The setting and building couldn’t be better suited –it’s a perfect location for whisky making and for welcoming visitors, with the main tourist road running right past the front gate.”

Significant anniversaries

There are also distilleries celebrating big birthdays this year. This includes Kilchoman Distillery which is marking its 20th anniversary. When it was founded by Anthony Wills in 2005 it became the first new distillery to be established on the whisky island of Islay in more than 124 years.

Anthony and his wife, Kathy, moved to Islay in 2004 to develop the farm distillery, continuing a family connection that dates back to the 1930s when Kathy’s grandparents first settled on the island.

The team has grown from five to 50 employees, and Kilchoman whisky is now available in more than 70 countries. To meet this global demand, the distillery has increased its production capacity from 100,000 litres of alcohol per year to 600,000 litres, as well as growing its barley production from 100 tonnes to 400 tonnes per annum.

Anthony recalls: “Twenty years ago, many were sceptical about building a new distillery on Islay, but we knew the potential of reviving the farm distilling tradition.

“This anniversary is a testament to the dedication of our entire team, and to see our sons now driving the brand globally is incredibly rewarding. It is a genuine family commitment to sharing the true spirit of Islay.”

In spring, Kilchoman unveiled a special 20th Anniversary Cask Series comprising four releases, each a vatting of five specially selected casks – a brace of 14-year-olds, a 15-year-old, and an 18-year-old single malt Scotch.

Ten years ago, in the small Argyll village of Tarbert, the first peats were placed on the fire at the new Isle of Harris Distillery. The community gathered for a celebratory ceilidh in its empty warehouse, yet to be filled with the island’s historic single malt.

The distillery has encountered some issues along the way, with Ron MacEachran, executive chairman, saying: “Earlier this year the distillery made the difficult decision to reduce production and workforce to safeguard the future of the business, a result of the challenging headwinds facing the wider industry.”

He adds that his team has continued to build on its foundations, for example with new global travel retail products, new partnerships and product development.

It has also launched The Hearach Decade Edition, the first whisky to be made using Harris peat, to celebrate its tenth birthday.