Brexit Vs Whisky
What does the UK's vote to leave the EU mean for the Scotch whisky industry?
Its been a funny few days here in Scotland as we come to the realisation that we will be taken out of the EU against our will. I hope our European counterparts(for the time being) realise Scotalnd actually voted 62%-38% to stay in the EU. But this was not enough to offset the overwhelming majority in England and Wales voting in favour of a brexit.(Northern Ireland voted to stay in too i might add).
What does this mean for the Scotch whisky industry? Well it depends on how you look at it. From a retailers perspective, it is not a bad thing. Initially. A weak pound(we have seen the pound crash to its lowest level against the dollar since 1985) means tourists may take advantage of favourable exchange rates while holidaying in the UK, whilst it should mean a boost in sales for online retailers from overseas markets for the same reason.
At the same time, the UK should continue to benefit from the single EU market(in the same way as Switzerland and Norway do) despite leaving. I would imagine that this will come at some financial cost however, meaning exports from UK becoming more expensive. It will also impact imports from Europe, so expect to see increases in price on European wines.
Basically though as things stand, there is a cloud of uncertainty hanging over the UK economy. We have seen the FTSE 100 crash, the decline of the pound, houseprices set to fall and the general economy weaken all round. This does not bring optimism from any business perspective. And it means more paperwork for Whisky Fix European online sales(Grrrrr).
As things stand at the moment, whisky prices at home may not increase anymore than they have been, but you can expect to see a steady increase in Europe over the next few years as a direct result of Brexit. If you are living in mainland Europe, now might not be a bad time to start that whisky collection you have been thinking abaout......
Posted: 27/06/2016 19:56:43 by euan finlayson