Mark Kent - BourbonSphere

Ask the Distiller: Ardbeg’s Dr. Bill Lumsden

This week, Ardbeg and Glenmorangie’s Dr. Bill Lumsden joins us to answer your questions posed in the WhiskyCast Community app. The questions ranged from why… Read More

This week, Ardbeg and Glenmorangie’s Dr. Bill Lumsden joins us to answer your questions posed in the WhiskyCast Community app. The questions ranged from why the new Ardbeg 17 is chill-filtered and bottled at 40% ABV to what it was like working with Beyoncé on her new Sir Davis Whiskey. We’ll have Bill’s answers on this week’s WhiskyCast In-Depth. In the news, Scotch Whisky industry leaders are calling this week’s UK excise tax hike a “betrayal” and a “kick in the teeth” — and we’ll hear from Scotch Whisky Association CEO Mark Kent, who’s also worried about the potential impacts of this week’s US presidential election on tariffs. We’ll also have the rest of the week’s news, tasting notes, and much more.

Episode 1081: November 3, 2024

Scotch Whisky Association Blasts UK Excise Tax Hike

The Scotch Whisky industry is accusing Prime Minister Keir Starmer’s government of going back on its campaign promise to back Scotch makers “to the hilt.”… Read More

The Scotch Whisky industry is accusing Prime Minister Keir Starmer’s government of going back on its campaign promise to back Scotch makers “to the hilt.” Chancellor Rachel Reeves’ first budget address to Parliament Wednesday included a 2.7% excise tax increase on distilled spirits in line with inflation, while giving a tax break to beer and cider served on draught in the on-premise market.

“Just raising further tax does not mean you’re going to get more money into the revenue for the Exchequer for public services, and indeed, the government figures show the opposite is the case,” Scotch Whisky Association chief executive Mark Kent told WhiskyCast in an interview. “The last time that the previous Chancellor, Jeremy Hunt, raised the tax rate by 10.1%, that led to a fall in 300 million pounds for the treasury revenue…what we’ve seen as a result of this is that we’ve been put at a further competitive disadvantage to other alcohol categories such as beer and cider.”

Kent said the tax hike will damage the Scotch Whisky industry as well as the Scottish economy and undermines the Labour government’s commitment to “Brand Scotland,” given that 70% of UK spirits are produced in Scotland. The increase will take the tax bite on an average bottle of Scotch to above £12 for the first time.

A Whiskey Love Story

Uncle Nearest Whiskey founder Fawn Weaver spent eight years researching and writing “Love & Whiskey,” the story of Nearest Green and Jack Daniel. During that… Read More

Uncle Nearest Whiskey founder Fawn Weaver spent eight years researching and writing “Love & Whiskey,” the story of Nearest Green and Jack Daniel. During that time, she also launched the Uncle Nearest brand, one of the fastest-growing whiskey brands on the market, and the book also tells that story as well. We’ll talk with Fawn Weaver on this week’s WhiskyCast In-Depth, and share tasting notes for the Uncle Nearest Rye whiskey in the What I’m Tasting This Week Department. In the news, there’s a deal in place to revive the historic Dallas Dhu Distillery in Speyside, and the Kentucky Bourbon Hall of Fame has announced its Class of 2024.

Episode 1064: July 7, 2024

Northern Ireland’s Distilling Resurgence

There was a time when Belfast and the surrounding counties led the world in whisky production. Several factors led to that tradition all but disappearing… Read More

There was a time when Belfast and the surrounding counties led the world in whisky production. Several factors led to that tradition all but disappearing over the last century, but now, the six counties of Northern Ireland are bringing new life to their distilling heritage. We’ll visit several of the country’s distilleries on this week’s WhiskyCast In-Depth. In the news, Chivas Brothers faces holiday strikes by distillery and bottling plant workers, while UK Chancellor Jeremy Hunt has given the country’s distillers a break by freezing excise taxes.

Episode 1032: November 26, 2023

Signed, Sealed, & Delivered: A Look at Contract Distilling

What do you call a distillery with no brands of its own? A contract (or custom) distiller creates whiskies for its clients, and many of… Read More

What do you call a distillery with no brands of its own? A contract (or custom) distiller creates whiskies for its clients, and many of Kentucky’s largest distillers have often sold excess capacity by distilling for others. Bardstown Bourbon Company pioneered the current wave of contract distillers in Kentucky, and co-founder David Mandell is now one of the partners behind the new Whiskey House distillery. It will focus exclusively on custom distilling for its clients, and David Mandell will explain why on this week’s WhiskyCast In-Depth. In the news, Midleton Distillery’s brand-new visitors center is closed after this week’s flooding caused extensive damage, while time is running out to avoid a return to tariffs on exports of American whiskies to Europe.

Episode 1027: October 22, 2023

Scotch Whisky Exports Down in 2023

Scotch whisky exports declined in both value and volume during the first half of 2023, according to a new report from the Scotch Whisky Association.… Read More

Scotch whisky exports declined in both value and volume during the first half of 2023, according to a new report from the Scotch Whisky Association. The report, based on HMRC statistics, shows a 3.6 percent decline in the value of Scotch Whisky exports over the first six months of 2023 compared to the same period a year ago. It should be noted that the first six months of 2022 set a record for both export value and volume as markets grew and restocked following the pandemic. The volume of Scotch whisky exports was down by 20 percent over 2022’s record volume.

SWA executives characterized the findings as part of a global trend toward premiumization in the spirits category as consumers drink less, but better. According to SWA Chief Executive Mark Kent, “around the world, we continue to see the same trend – consumers drinking less overall and switching to higher quality spirits like Scotch Whisky. Premiumisation in the spirits category didn’t start during Covid-19, but the pandemic certainly accelerated the trend, and it remains the case that consumers are trading up, enjoying premium spirits, and consuming fewer units of alcohol. Scotch Whisky remains well placed to benefit from this shift.”

France reclaimed its long-standing position as the top export market by volume with 88 million (700ml equivalent) bottles, despite a 12.6 percent decline from 2022. India, which had previously displaced France as the volume leader, recorded a 31.4 percent decline to 72 million bottles. The United States ranked third with 59 million bottles even though overall exports were off by 14.9 percent.

The U.S. continues to lead by value of exports with £437 million worth of Scotch Whisky imported during the first half of the year. However, that represents a 5.1 percent decline from 2022. France gained four percent to £235 million to finish second once again, while Singapore’s role as an Asian shipping hub helped push exports up by 59 percent to £165 million. Taiwan and China both reported strong gains to round out the top five.

The premiumization trend is most obvious in the Asia-Pacific countries, since none of those three crack the top ten in terms of value and the wider region reported a 13.5 percent gain in export value. The European Union gained 3.8 percent by value, while the non-EU European countries showed a 14.5 percent gain. North America, the Middle East and Africa, and Central and South America all reported declining exports.

This story was published August 17, 2023.

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.