Brazil has granted Scotch whisky a special protected status in a move that is set to boost the sector’s access to the nation.
The new protection means the Brazilian legal system recognises the special status of scotch whisky, making it easier to tackle counterfeits and giving UK distillers greater exposure in Brazil.
This new status, also known as a Geographical Indication (GI), could be worth an additional £25m to the industry over five years, according to the Department for Business & Trade.
The UK already exported almost £90m of the popular British spirit to South America’s largest economy in 2023 alone.
Brazil is also in the top five global growth markets for alcohol over the next five years, showed DBT estimates.
Defra minister for food security, Daniel Zeichner, said the announcement showed “both demand for authentic scotch whisky abroad and the value of promoting British products on an international stage”.
“Our UK GI scheme connects British producers with consumers who appreciate the quality and reputation of their products, giving UK businesses a strong leg up in international markets.
“With the agri-food and drink sector being the largest manufacturing sector in the UK, it’s clear there’s an international appetite for British products and we are committed to further growing trade opportunities for producers around the world.”
The UK’s annual GI exports, which also include Welsh lamb and Cornish pasties, are estimated to be worth over £6bn and account for 25% of UK food and drink exports’ value.
Read more: Brazil meat conference shows progress on environment and welfare
Growing British exports is one of the new government’s key focuses as part of its wider strategy to bolster the economy and create more jobs.
UK Export Finance research shows that businesses that export grow at twice the rate of those that don’t.
But Labour has a hard task at hand, with food and drink exports on a downward slump for the past decade, and particularly badly hit since Brexit, recent FDF data has showed.
Scotch is by a wide margin the most sold abroad British food and drink good – exports in 2023 were worth £5.6bn and accounted for 22% of all UK food and drink exports.
The sector exported £1.2bn worth of whisky in the first quarter of this year alone, according to FDF data.
However, scotch exports have decreased both value and volume sales in Q1 2024 (–8.8% and –4.3% respectively) compared with the previous year.
Removing trade barriers and securing legal protections for scotch whisky was ”critical to the industry’s success”, said Scotch Whisky Association CEO Mark Kent, adding it helped ”to increase exports and in turn creating more jobs, investment and prosperity in Scotland and across the UK”.
Scotch whisky now sits beside tequila, cognac and champagne with special legal protection in Brazil.
Trade secretary Jonathan Reynolds visited Glengoyne Distillery in Scotland on Wednesday to celebrate Brazil’s decision.
He said: “Scotch whisky is one of Scotland’s finest products and is in high demand across the globe.
“This government is committed to maximising Scotland’s potential, and today’s announcement gives Scottish distillers the confidence they need to export to one of the world’s largest economies without having to compete with fake knock-offs and pale imitations.
“Businesses who export more are better off, and removing trade barriers like this will unlock more global markets and drive economic growth across the UK.”
No comments yet