A study for the The Scotch Whisky Association has shown that whisky is worth £4 billion annually in additional value to the Scottish economy. The industry is spending upwards of £1.1 billion a year with Scottish business.
The Economic Impact of Scotch Whisky Production in Scotland – by Verso Economics, also revealed the industry’s annual turnover in Scotland is now £6.4 billion and that after oil and gas the sector remains the country’s leading manufactured export, with shipments of £3.1 billion a year.
The spending with Scottish suppliers, which includes £200 million on cereals, helps support 35,000 Scottish jobs, with the industry itself directly employing 10,300 people across the country.
The study, commissioned by The Scotch Whisky Association, also revealed:
- Spending with Scottish suppliers has increased by 61% since 2000
- Export value has grown by 42% since 2000 (from £2.2 billion)
- Capital spending of £355 million a year, of which nearly a third is invested in Scotland
- Scotch whisky’s economic impact is as significant as tourism – with employees adding twelve times more value per head
- Industry productivity at £262,000 per employee is six times the Scottish average
- One fifth of Scotch whisky jobs are in the more fragile rural communities across the Highlands & Islands
- Scotch whisky supports double the number of Scottish jobs than those in aerospace and defence, as well as a similar number to those employed in Scottish universities
- The majority of employment is found in Strathclyde (52%), Central Scotland & Fife (17%) Grampian (14%), and Lothian (11%)
Paul Johnston, a Drinks Industry commentator and Aberdeenshire Councillor has welcomed the report.
“It demonstrates the importance of the drinks sector in the Scottish Economy. The 35,000 jobs are important and so is the £4 billion pounds in added value. What is more important is that much of what makes Scotland the place that it is is encapsulated in the production of Scotch Whisky. It is the ambassador of things Scottish, of what is unique in this place. Its importance cannot be underestimated and this report underpins that fact.”
“The Scotch Whisky Association is right to have concerns on taxation issues. However, domestic taxation is not the over-riding issue here. This is an export led industry and the new Government needs to encourage the conditions that allows for those quality exports.
“The domestic minimum pricing issue is a distraction to the real issues as is domestic duty. Important though it all is, the iconic nature of Scotch is the key to this industry. The government helping us to get an even playing field for quality products against low grade bulk alcohols, is the message for our exporters”
