budget - BourbonSphere

Catching Up with Ardbeg’s Colin Gordon

It’s been three years since Colin Gordon left Islay’s Lagavulin Distillery to move down the road and take over for the retiring Mickey Heads at… Read More

It’s been three years since Colin Gordon left Islay’s Lagavulin Distillery to move down the road and take over for the retiring Mickey Heads at Ardbeg. Since then, Ardbeg has commissioned a completely new stillhouse and visitor traffic has recovered from the pandemic. We’ll catch up with Colin Gordon on this week’s WhiskyCast In-Depth. In the news, the clock is ticking toward a partial U.S. government shutdown that could affect whisky makers and consumers, while Scotland’s government is debating an increase in the minimum unit price for whisky and other alcoholic beverages. We’ll also hear from Campari CEO Bob Kunce-Concewitz on his company’s expansion plans, check in with Wild Turkey’s Eddie Russell on the latest expansion of the Russell’s Reserve Single Rickhouse Series, and get a preview of this year’s Diageo Special Releases from master blender Stuart Morrison.

A Scottish Rye? Rye Not! (Episode 1002: April 30, 2023)

Rye hasn’t been widely used by Scotch whisky distillers for decades, but Inchdairnie Distillery is doing something different for its first release: A Scottish single grain distilled from 53% malted rye and 47% malted barley. The distillery contracted local farmers to grow the rye grain, and released its first batch of RyeLaw this week. Inchdairnie managing director Ian Palmer joins us to explain the reasons for starting with a Scottish rye whisky. In the news, British Prime Minister Rishi Sunak says no to reconsidering a whisky tax hike set for August, while Diageo is joining the growing list of whisky Read More »

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Thanks a Thousand! (Episode 1000: April 16, 2023)

We’re celebrating a major milestone this week with the 1000th episode of WhiskyCast! To mark the occasion, Mark went back through the archives to pick some memorable moments and interviews from the past 18 years for this special episode. You’ll hear from legends like the late Parker Beam and Michael Jackson, along with Jimmy Russell, Jim McEwan, Maureen Robinson, Fawn Weaver, and Richard Paterson…just to name a few. This episode is a lot longer than usual, and there’s plenty more that we could have included. In the news, Scotch Whisky Association leaders are hoping to persuade Parliament to reject a Read More »

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Chancellor Slams Whisky Industry With Tax Hike

March 15, 2023 – The Scotch Whisky Association’s pleas for a freeze on excise duty fell on deaf ears, as Chancellor Jeremy Hunt’s new budget calls for a 10.1% increase in duty on whisky and other distilled spirits. Hunt’s budget plans a tax increase in line with inflation effective August 1 for all four alcohol categories (distilled spirits, wine, beer, and cider), with relief being offered for on-draught products sold at bars and restaurants. According to the Scotch Whisky Association, the duty rate on spirits will rise to £31.64 per liter of pure alcohol, raising the tax burden on an Read More »

Chancellor of the Exchequer Jeremy Hunt with the “red box” containing his budget address to Parliament March 15, 2023. Image courtesy UK.gov.

March 15, 2023 – The Scotch Whisky Association’s pleas for a freeze on excise duty fell on deaf ears, as Chancellor Jeremy Hunt’s new budget calls for a 10.1% increase in duty on whisky and other distilled spirits. Hunt’s budget plans a tax increase in line with inflation effective August 1 for all four alcohol categories (distilled spirits, wine, beer, and cider), with relief being offered for on-draught products sold at bars and restaurants.

According to the Scotch Whisky Association, the duty rate on spirits will rise to £31.64 per liter of pure alcohol, raising the tax burden on an average bottle of whisky from 70% to 75%.

SWA Chief Executive Mark Kent blasted what he calls a historic blow to the industry.

“We have been clear with the UK Government that increasing duty would be the wrong decision at the wrong time, so it is deeply disappointing that one of Scotland’s largest and longest-standing industries has been treated in this way. The industry continues to grapple with significant domestic headwinds, including the soaring cost of energy, intense pressure on the hospitality sector, and increasing regulatory burdens like the Deposit Return Scheme. This tax hike just adds to the pressures on the sector and breaks the UK government’s commitment to support Scotch,” he said in a statement.

Kent called on members of Parliament to reject the “unjustifiable” tax hike when they vote on the Finance Bill later this spring.

Links: Scotch Whisky Association

Distillers Left Out of UK Energy Relief Program

February 17, 2023 – Wine, cider, and beer qualify for relief under the UK Government’s new energy relief program, but whisky distillers have been left out, despite the fact that distilleries use more energy than their competitors in the drinks industry. The government’s Energy and Trade Intensive Industries scheme is designed to provide financial support for industries hit hard by the rise in electricity and natural gas prices, with eligible companies receiving a discount based on the difference between wholesale prices and a set price threshold. According to the Scotch Whisky Association, 53 percent of distillers have seen their energy Read More »

February 17, 2023 – Wine, cider, and beer qualify for relief under the UK Government’s new energy relief program, but whisky distillers have been left out, despite the fact that distilleries use more energy than their competitors in the drinks industry. The government’s Energy and Trade Intensive Industries scheme is designed to provide financial support for industries hit hard by the rise in electricity and natural gas prices, with eligible companies receiving a discount based on the difference between wholesale prices and a set price threshold.

According to the Scotch Whisky Association, 53 percent of distillers have seen their energy costs increase in the past year, while 72 percent expect those costs to rise this year. Chief executive Mark Kent said in a statement that distillers have been left out in the cold at a time when the government is considering lifting the current freeze on excise duties in next month’s budget address. Most distilleries rely on natural gas to fuel their boilers and heat their stills, with others relying on fuel oil.

“Scotch Whisky has consistently delivered for the UK economy when given stability and certainty through duty freezes, enabling the industry to reinvest in the economy. Our message to the Chancellor is clear – increasing duty would be the wrong decision and the wrong time. By freezing duty the government can support Scotch and avoid unnecessarily fuelling inflation at a time when there are already significant pressures on businesses and households, and consumers,” Kent said.

Most of the industries eligible for the scheme are manufacturing-based, but the list also included wineries as well as brewers and cider makers. Those industries were selected based on a combination of their energy usage and trade intensity. More details on the program are to be published next month.