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It started with the assertion that gin revenues in the UK would overtake those of blended Scotch whisky by 2020 – a forecast made last week by research company Euromonitor International. Things escalated rather quickly from there.
Within a day or two, UK sales of Scottish gin were about outstrip those of Scotch, according to some headlines. By the time I was asked to comment on the issue on BBC Radio Scotland’s Good Morning Scotland programme last Tuesday, it was Scottish craft distillers who were driving this gin-naissance at the expense of their whisky-making compatriots.
And so an initially compelling headline, propelled by the media equivalent of Chinese whispers, quickly became – depending on your point of view – a source of Scottish national pride, or a betrayal of one of the country’s most lucrative exports.
And the truth? Well, that’s become an over-valued currency in 2016, as global political events have taught us.
A little clarity. Euromonitor reckons gin sales in the UK were worth £1.07bn in 2015, versus blended Scotch at £1.28bn. By 2020, it predicts the respective figures will reach £1.37bn and £1.17bn.
Read that again. Blended Scotch. No mention of single malts, which now account for roughly 15% of Scotch whisky sales by volume in the UK – and considerably more by value. Bring in the likes of Glenfiddich, The Glenlivet and Glenmorangie, and there’s no story.
On-trend: But can gin really overtake Scotch in the UK?
Secondly, the Scottish ‘craft’ angle. Scotland, we’re told, now produces 70% of the gin consumed in the UK. Well… yes. Given that multinational Diageo produces market leader Gordon’s and number four-selling Tanqueray at Cameronbridge in Fife, that’s hardly surprising.
Add in Hendrick’s (made by William Grant at Girvan, south Ayrshire) and Glen’s (Loch Lomond’s Glen Catrine, also Ayrshire) and that’s roughly half the UK gin market taken care of. None of the companies named could realistically lay claim to being ‘craft’ operators, however you define the term. Nor would most people readily identify Gordon’s and Tanqueray with Scotland (they were initially distilled in Southwark and Bloomsbury respectively).
Beyond the hype of the ‘gin overtakes Scotch’ soundbite, however, there’s an underlying truth. Gin is hot in the UK right now, and the ever-expanding army of small-scale craft distillers in Scotland – while not troubling the market leadership of Gordon’s or Bombay Sapphire – are a crucial part of that resurgence.
But there’s another reason why some Scots have taken to infusing neutral grain spirit with bizarre botanicals: in many cases, these same distillers are also making Scotch – and gin is a nice source of short-term revenue while they wait at least three years (and often far longer) for their whisky to mature.
Far from being threatened by the craft spirits zeitgeist, Scotch whisky is, in fact, part of it. Strathearn distillery released a number of gins before recently selling its first bottle of Scotch whisky (aged three years and a day) for an eye-watering £4,150 at auction; demand for immature spirit made by Ardnamurchan has outstripped supply by more than three times.
Euromonitor’s predictions are honest ones, and based on the experience and knowledge of their analysts. But that’s all they are – predictions – and I know of at least one rival company whose forecasts directly contradict them.
In the end, while these figures are a useful generator of (sometimes misleading) headlines, I’d give them as much weight as – to pluck an example out of the air – pre-election opinion polls.
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