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Global exports of Scotch whisky slumped to their lowest level in a decade last year, according to an industry body.

The Scotch Whisky Association (SWA) said exports fell by more than £1.1bn as Covid-19 and a 25% tariff in the United States hit distillers hard.

In 2020, Scotch whisky exports fell 23% by value to £3.8bn.

SWA found the value and volume of exports to most of Scotch whisky's top 10 markets fell as countries went into lockdown to combat the spread of Covid.

The closure of hospitality and travel restrictions hit airport retail globally, with export values falling in 70% of Scotch whisky's global markets, compared with 2019.

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Scotch whisky's most valuable market, the US, registered the most significant losses as a result of tariffs imposed on single malts by the US in retaliation against EU subsidies given to aircraft maker Airbus.

In 2020, exports to the US fell by 32% to £729m, a loss of £340m compared with the previous year.

Exports to the EU, the industry's largest regional export market, fell by 15%.

'Grim reminder'
SWA chief executive Karen Betts said: "These figures are a grim reminder of the challenges faced by distillers over the past year, as exports stalled in the face of the coronavirus pandemic and US tariffs. slotpg

"In effect, the industry lost 10 years of growth in 2020 and it's going to take some time to build back to a position of strength."

Ms Betts said Scotch whisky was now "losing considerable ground" in the US as a result of tariffs imposed there as a result of the EU-US trade dispute.

"The Scotch whisky industry has now paid over half a billion pounds in tariffs - which are a form of tax - on behalf of the UK government because of the subsidies that the government granted to the aerospace sector in breach of World Trade Organisation rules," she said.

"So we are calling on the chancellor to support Scotch whisky distillers by reducing our tax bill in the UK."

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