Brazil Grants Special Protected Status to Scotch Whisky, UK’s Trade Secretary Visits Scottish Distillery
In a significant move for the Scotch whisky industry, Brazil has officially granted “geographical indication” status to the popular spirit. This legal recognition, which occurred during the UK’s pre-election period in June, is expected to open up new opportunities for distillers in South America’s largest economy.
To celebrate this milestone, UK Trade Secretary Jonathan Reynolds recently visited Glengoyne Distillery in Scotland and raised a toast to the decision. “Scotch whisky is one of Scotland’s finest products and is in high demand across the globe,” said Reynolds. “Brazil’s move to grant protected status will give 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 imitations.”
The Department for Business and Trade estimates that the geographical indication status could potentially bring in an additional £25 million in revenue for the industry over the next five years. This recognition will also make it easier for distillers to combat counterfeiting and increase consumer confidence in the authenticity and quality of Scotch whisky.
Mark Kent, chief executive of the Scotch Whisky Association, praised Brazil’s decision, stating that it is the first foreign product to be granted “denomination of origin status” in the country since 2019. “Scotch whisky now joins the ranks of other esteemed spirits such as tequila, cognac, and champagne with special legal protection,” said Kent. “This is crucial in ensuring that millions of Brazilians can trust the quality and heritage of the whisky they are purchasing.”
The impact of this recognition is expected to be significant, as Scotch whisky is already a major contributor to the UK economy. In 2023, exports of the spirit were valued at £5.6 billion, accounting for 74% of Scottish food and drink exports and 22% of all UK food and drink exports.
However, the industry has faced challenges in recent years, including a 10.1% increase in alcohol duty implemented by former chancellor Jeremy Hunt in 2023. According to new figures from HM Revenue and Customs, this hike has resulted in a loss of nearly £300 million in tax revenue from Scotch whisky and other spirits in the period from August 1, 2023 to July 31, 2024. The Scotch Whisky Association has called on the new chancellor, Rachel Reeves, to reverse this decision in the upcoming budget on October 30, citing its negative impact on the industry.
In response, a spokesperson for HM Treasury stated that the government is committed to supporting the Scotch whisky industry. “Alcohol duty will remain frozen until February, punitive tariffs have been removed, and we continue to defend the interests of the sector in trading agreements,” said the spokesperson.
With Brazil’s official recognition of Scotch whisky, the industry can look forward to greater opportunities and protection in the South American market.
