Scotch Whisky’s slightly sore head
In a recent in-depth analysis of the Scotch whisky industry, the FT painted a grim picture of suppressed demand and an ever-rising tide of maturing spirit. Will distilleries and jobs be swept away in another great whisky loch? Tom Bruce-Gardyne believes such talk is way too pessimistic The week-end before last, the FT went big [...]
An analysis in the Financial Times revealed a bleak outlook for the Scotch whisky industry, citing declining demand and a surplus of matured spirits. The FT's Scotland correspondent, Simeon Kerr, along with consumer industries reporter Madeleine Speed, explored the woes of the industry, opening their report with the closure of Holyrood Distillery in Edinburgh.
They argued that overproduction in the 2010s led to an excess of casks maturing just as demand fell due to the global cost of living crisis and changing drinking habits among younger consumers. The term "whisky loch" was used to describe the potential for an oversupply of whisky. While the debate around the industry's decline gained initial traction, it has since subsided as governments focus on other priorities.
Some argue that the decline is more cyclical than structural, while others maintain that the US market, where Diageo experienced an 11.5% sales drop (1% for Scotch), is crucial for the industry's future.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
