Back

		The Scotch Whisky industry promised no let up in the battle against trade barriers worldwide as the industry gathered in celebratory mood today at The Scotch Whisky Association's AGM and annual lunch in Glasgow.
		Association chairman, John McGrath, told 200 industry leaders that 1996 had been a highly successful year for Scotch Whisky, both commercially and in achieving major improvements in trading conditions. The industry entered 1997 in optimistic mood, with new marketing opportunities to seize.
		In 1996 the industry saw a return to growth in mature markets such as the USA, where the value of bottled-in-Scotland single malt grew by 25 per cent, and bottled-in-Scotland blended Scotch was up by 6 per cent. Rising exports to Japan, with better opportunities ahead, gave the industry hope for the future, Mr McGrath said, as did the doubling of the value of shipments to the embryonic Chinese market.
		Commenting on the UK market, Mr McGrath said: "We have seen two consecutive tax cuts, the first for one hundred years, in themselves a major achievement. But, more important, these two cuts mark a sea change in tax policy, a policy which I commend to whoever will be resident in 11 Downing Street on 2nd May."
		Progress in 1996 was not restricted to the UK, Mr. McGrath told the industry. He said: "Our success in securing tax cuts at home was paralleled overseas when after 20 years of industry pressure Japan agreed to eliminate discrimination against Scotch Whisky. Within two years, the tax on Scotch will have halved, the tax on shochu doubled, and the level playing field we have sought in one of our most important overseas markets will be in sight."
		"But", he added, "we cannot rest on our laurels and say the job is done in Japan. It is up to our industry to make the most of this new opportunity by persuasive marketing. Japan, a spirit drinking country, is the fifth largest export market for Scotch Whisky. This reform gives the industry the chance to make it even more valuable for Scotch.
		"The industry has already taken up the challenge. Only last week, the largest ever Scotch Whisky mission to Japan was in Tokyo and Osaka. Companies representing well over 80 per cent of the industry were working together, with the Association, the Embassy, the DTI and Scottish Trade International, to reinvigorate interest in Scotch in Japan ahead of the tax cuts."
		Mr McGrath told the lunch that the battle against tax discrimination continued, with Korea next in the industry’s sights, as well as Chile, which had clearly been awaiting the outcome of the Japanese case before deciding how to comply with Europe’s requirement that she too should cease discrimination. The industry is looking to Chile to follow speedily Japan’s lead.
		Turning to Europe, Mr. McGrath said: "Closer to home, the European Union is displaying frustrating inertia in fulfilling its vital task of securing a genuine Single Market for alcoholic drinks. Whatever the developments in other fields, there is no Single Market for Scotch Whisky, faced as we are with 15 different tax regimes in 15 different Member States, the most common feature of which is high taxes on spirits and low, or no taxes on wines.
		"This lack of action in Europe to secure duty harmonisation is particularly annoying when, together with the British government, the EU has been most active in fighting for the spirits industry further afield.
		"If we are frustrated over Europe, we had cause by contrast to celebrate another milestone development in 1996 on the other side of the world when Australia passed into law a definition of Scotch Whisky matching our own, complete with a 40% abv minimum strength. This will help to secure jobs in Scotland, to consolidate the market in Australia, and to ensure we exert greater control over quality, benefits which will help the industry when the legislation comes fully into force in June this year. We will be pressing New Zealand and other countries to follow Australia’s example.
		"Government support, and that of the EU, has been vital in achieving many of these successes. It is essential, if we are to continue to enjoy better market conditions, that we work with government and they with us. As one of the UK’s leading export earners, an industry which is at the core of some of the UK’s largest companies, it is in the government’s interest to take a close and positive interest in Scotch Whisky.
		"The successes of 1996 are but a stepping stone to 1997, which I believe will herald new opportunities and growth for this world beating industry."

			Back