Amidst the crisis, great news: in 2019, European spirits came out as the EU’s most valuable agricultural export good. Every hour in 2019, spirits worth €1.4 million were exported. That sums up to a staggering €12.5 billion over the year – a growth by +9.9% compared to 2018 and +119% over the past decade. Free trade as part of an integrated, interconnected global economy has fuelled once more our sector’s growth. The US remains our largest export market, followed by Singapore (logistics hub to supply Asian neighbour countries) and China. The leading categories are Whisky (43%) - primarily from Scotland and Ireland - followed by Cognac (30%), Liqueurs (10%), Vodka (7%), Gin (4%) and Rum (1%).
Free trade truly is a win-win, with export successes generating investment and employment at home and secondary economic benefits in the target markets. As such, trade must remain a priority for the EU and should play a crucial role in considerations on how to boost the recovery following the economic damage caused by the current coronavirus crisis. Driven by the continued export success, our sector has made significant investments across Europe in recent years. For instance, the 80% increase in whisky exports has accelerated growth and investments in places such as Scotland and Ireland. Many new distilleries have been built and bottling plant capacities have been expanded – with positive knock-on effects on glass manufacturers, coopers as well as transport and packaging businesses.
Yet last year’s record results are under jeopardy – from different fronts. When Eurostat will publish its export data for 2020 the picture is likely to look different. While nobody can yet predict the exact impact of COVID-19 on European spirits’ production and exports, it will likely be profound. In addition, the still unresolved US-EU trade dispute is adding a heavy burden on those spirits categories which are subject to 25% US tariffs since last October. In these categories, European exports are declining, and are set to decline until a solution is found. On both sides of the Atlantic, we continue to call on the European Commission and the US administration to find a negotiates solution and remove all tariffs in place. Now, more than ever is the time to abolish unnecessary artificial barriers to trade and business growth. Finally, our export statistics will change in 2020 due to Brexit. EUR 4.6bn worth of exports from the UK including Scotch Whisky exports will no longer be recorded, technically speaking, as EU data. Notwithstanding all of these challenges, one thing is certain: count on the energy, determination and creativity of European distillers (no matter where exactly they are located) to produce high-quality spirits cherished and enjoyed all over the world!
