Tag Archives: scotch whisky

DEWAR’S Launches ‘Here’s to the Story’ Campaign with Bar Swap Experience

If you’ve been following Ambrosia then you would know that Bar Swap’s are a new trend in the country.

And DEWAR’S in its new campaign is banking on that. Their new initiative Here’s to the Story, opens with a unique Bar Swap between SOKA in Bengaluru and LAIR in Gurugram, where two mixologists from SOKA will bring their signature cocktails to Delhi for a one-night takeover.

The campaign will run under the larger umbrella of DEWAR’S Discoveries, a series of activations designed to encourage exploration through flavour, storytelling, and shared experiences. Each event will highlight regional nuances in cocktails, food, and culture, creating opportunities for audiences to engage with Scotch in fresh contexts.

Actor Randeep Hooda has also joined the campaign, bringing his perspective on discovery and storytelling. From flavours rooted in India to experiences abroad, his collaboration highlights the cultural and sensory layers the campaign aims to explore.

Over the coming months, the Bar Swap format and other activations will travel to key cities including Mumbai, Bengaluru, and Kolkata, each edition introducing local elements and new interpretations of Scotch.

So keep an eye out for the dates for these curated experiences.

Laphroaig Single Malt and Willem Dafoe Partner in Global Campaign

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Laphroaig Islay single malt, has announced its global partnership with actor, Willem Dafoe. The first of its kind in the distillery’s history, the campaign includes a short film titled ‘The Taste’, global advertising, a bespoke cocktail creation and tease of a limited-edition whisky.

The collaboration marks the latest instalment in the brand’s ‘Unphorgettable’ campaign, which was launched in 2024 and celebrates the unmistakable flavour of this whisky.

‘The Taste’ brings to life Dafoe’s search to define Laphroaig’s taste —something he can’t quite put his finger on. It draws inspiration from components in Dafoe’s life and his thirst for immersing himself to get a taste of experiences, including the attempt, as a child, to get a sense of flying to space by remaining in a wardrobe for two days. With this individual and curious style, Dafoe seeks the words to describe the bold single malt, and recites humorous descriptions submitted by some of the whisky’s biggest fans —Friends of Laphroaig.

The film and full campaign will be shared globally across channels, with a focus on digital and paid social. This will be reinforced with out of home, print, PR and in-store promotions in key markets, including the US, UK, Germany, Austria, Belgium, Japan, Australia and Global Travel Retail.

Chris Richardson, Managing Director of Suntory Global Spirits, Scotch and Irish, said, “Willem Dafoe is bold, curious, and impossible to define, much like Laphroaig itself. His uncompromising dedication to craft mirrors our own approach to whisky making. He is the ideal partner to bring to life the intense, unmistakable, and truly ‘unphorgettable’ flavour of Laphroaig, and to celebrate those around the world with character as distinctive as his.”

Speaking on the inspiration behind the film, Dafoe said, “The first time I ever travelled overseas, I went to Scotland. I was a kid, and the first thing I thought when my feet touched down on the ground was, something feels familiar here. I feel at home. The land spoke to me, and it must be genetic because my grandmother was from Glasgow. ‘The Taste’ depicts that sort of familiarity that’s found when exploring Laphroaig. It’s the flavours and how they come together.”

Laphroaig has also enlisted award-winning mixologist, Meaghan Dorman, to create a cocktail, named ‘The Other Island’. It blends Laphroaig 10-Year-Old, fresh pineapple, lemon, spiced cinnamon syrup and Amaro Ciociaro, with a touch of prosecco, to create a smoky, tropical and gently spiced spritz, balancing Laphroaig’s familiar character with layered flavours. The cocktail will be available first to guests at The Barley Mow pub in Mayfair, London, being renamed ‘The Barley Dafoe’ for campaign launch, before appearing on menus in additional select bars worldwide.

This Dafoe partnership will also extend to a limited-edition product collaboration, set for release in 2026. Together with Sarah Dowling, Senior Whisky Maker for Laphroaig, Dafoe has developed a limited-edition, that is quietly maturing, steeped in the peat, smoke, salt and the surprising sweetness that infuses all Laphroaig whiskies.

Scotch Whisky industry seeks Budget lifeline as over 1,000 jobs shed

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With over 1,000 direct Scotch industry jobs lost since last Budget, and polling showing the majority back a reduction in the tax burden on Scotch, sector bosses say to the UK Prime Minister, Keir Starmer: “now is the time” to back Scotch Whisky.

The Chancellor has been asked to give a lifeline to distillers in the Autumn Budget as the Scotch Whisky industry revealed there have been massive job losses since a further rise in spirits duty at the last Budget. Over 1,000 direct Scotch industry jobs have been lost since the last Budget, 2.7% of all those directly employed by the sector. And as the industry braces for more bad news in the coming budget, expected in November, as Rachel Reeves seeks to plug a black hole in the nation’s finances.

The double whammy of 14% in duty rises over the last two years alone—alongside tariffs in the United States—have left Scotch distillers saying they will reduce investment and see further job losses if taxes once again rise at the Budget this autumn: Industry sentiment surveys (Feb-June 2025) show three in four Scotch whisky distillers expect to defer or move investment outside the UK due to high duty rates; One in four distillers anticipate job cuts directly linked to 14% duty hike over last two years—many of these jobs will be lost in some of the most fragile economic areas in the country, in rural and island communities; About 76% of distillers warn that further increases in duty would reduce likelihood of capital investment or recruitment; Industry is already suffering from losses of £4m a week due to US tariffs.

Starmer had previously wooed the sector, saying before last year’s general election (in November 2023): “It’s clear Scotland’s whisky industry isn’t getting the stability it needs from the Tories and the SNP. Labour will put growth at the heart of our government and back Scotch producers to the hilt.”

In a Survation Poll commissioned in November 2024, shortly after Chancellor Rachel Reeves further increased duty on Scotch Whisky, 66% said they believed that the tax rise had broken the commitment made by the Prime Minister.

“The high tax burden is something the government can take action on… Now is the time,” said Billy Walker, master distiller at Glenallachie Distillery, Speyside.

Commenting on the pressures facing the sector today, Billy Walker, added, “I’ve been in the industry for more than 50 years and rarely, if ever, has there been a time of such peril to the long story of Scotch—tariffs overseas coupled with increasing tax and regulation in our home market.

“Some of the challenges the industry faces the government can’t address, and we accept that. But the high tax burden is something the government can take action on. It is often quoted back to me what the prime minister said, that he would back us to the hilt. Well, now is the time—and the Autumn Budget is the moment.”

Whisky bosses are set to lay out the stark future the sector faces to Treasury mandarins in the coming weeks in the hope the PM and his Chancellor keep their promise to back the sector.

**Barry O’Sullivan, UK Managing Director, Diageo**

Barry O’Sullivan, UK Managing Director of FTSE 100 spirits giant Diageo, said, “We urge the Chancellor to support Scotch, a historic, UK homegrown industry that not only supports thousands of jobs, but flies the flag for the UK on quality and craftsmanship around the world.”

**Mark Kent, Scotch Whisky Association Chief Executive**

Scotch Whisky Association Chief Executive Mark Kent said, “Distillers are right to raise the alarm. Job losses and cancelled investment is the same story we hear right across the industry as a direct result of the high domestic tax burden. We know that this will need to be a revenue raising budget, and the only way the Chancellor can do that through alcohol duty is to reduce the tax burden on Scotch whisky and other spirits. That is self-evident from the government’s own economic data, showing tax rises over the past two years have lost the Treasury over £600m in revenue.”

The industry’s case to the PM and Chancellor will include highlighting hospitality businesses’ dependence on Scotch and other spirits for their own future. Industry figures show 38% of the profits made by bars and restaurants come from spirits.

Matt Macpherson, owner and operator of The Malt Rooms in Inverness said, “Pubs and bars like mine cannot sustain themselves on beer sales alone. While beer plays a role in our overall offer, it is not the core of our business model. However, the current alcohol duty regime appears to disproportionately favour beer, placing venues like ours—where premium spirits, especially Scotch whisky, are central—at a disadvantage?”

And Leon Thompson, Executive Director – Scotland, UK Hospitality added, “Those who visit our hospitality venues want to see a diverse selection of cocktails and serves. Spirits like Scotch whisky are a crucial part of that mix, and for the economic viability of our pubs and bars.

“Our hospitality sector is hurting in the face of rising business and employment costs, and we know action is necessary to stem the significant job losses the sector has already seen. With spirits accounting for 38% of a venues’ alcohol profits, action to freeze excise duty would be a welcome help.

At the same time, the sector will highlight that while spirit duties have risen by 14 per cent in just two years, the Office for Budget Responsibility was forced to admit that excise duty collected was £676m lower than expected.

New research from the Scotch Whisky Association shows that versus an RPI increase, forecasts show a freeze of spirits duty would generate an additional £122mn revenue for the Government in 2026/27, cumulative additional £1.03bn tax raised over four years.

Glasgow Distillery’s Limited Release of 1770 10-Year-Old Single Malt

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Glasgow Distillery has announced the release of its second limited 10-Year-Old single malt, to mark a decade of whisky production. This special edition has been bottled in collaboration with one of Scotland’s leading whisky retailers, Royal Mile Whiskies. The limited release (340 bottles) to be released at Whisky Fringe in Edinburgh, will be available on royalmilewhiskies.com from August 11.

Glasgow 1770 10-Year-Old Sauternes Cask Matured is a single cask, unpeated single malt fully matured in a re-fill French Sauternes sweet wine barrique. The result is a fruity, delicate whisky with notes of poached pear, salted caramel, honey and tropical fruit, with a hint of cinnamon spice.

The bottling follows the inaugural 10-Year-Old release, which sold out in under twenty minutes in March and July’s trio of Small Batch Series expressions also matured in wine casks.

“It’s a big year for us at The Glasgow Distillery, as we celebrate 10 years since our first casks were filled. This is a truly special 10-Year-Old release, an American white oak cask that previously held Sauternes wine. Being a refill barrique, the Sauternes influence is present but not overpowering, adding depth and flavour, resulting in a perfectly balanced single malt while still showcasing our decade-old spirit. The caramel and malty characters of the American oak are complemented by the rich poached pears and tropical fruit imparted by the Sauternes wine, creating a harmonious balance of whisky and wood,” said Mike Hayward, Founder

“We’re delighted to have collaborated with The Glasgow Distillery on this exciting release. We’ve long supported the new wave of Scottish distilleries, and The Glasgow Distillery has firmly established itself as one of the most innovative and inspiring producers right now. Their diverse core range, along with an impressive Small Batch Series, showcases great flavour quality and accessibility. It’s no wonder they’ve built such a passionate community around their whiskies.”

“This single cask marks their first 10 years of whisky making and is one of the most interesting examples of Sauternes cask matured whiskies I’ve tried recently, showcasing a balance of fresh apricots, salted butterscotch and honey. We’re proud to be launching it exclusively at the 23rd edition of Whisky Fringe this year at Mansfield Transquair, where The Glasgow Distillery will be joining fellow established distillers in the main hall for the first time,” added Sam Brabbs, Head Spirits Buyer at Royal Mile Whiskies

Tasting Notes:
Nose: Notes of runny honey and rich vanilla with hints of floral orange blossom leading to baked apple pie, stewed pears and dried apricot.
Palate: Honeyed sweetness and notes of vanilla pods meet Seville orange marmalade, ripe mango, rich toffee and baked fruits, all underpinned by a welcome lasting minerality.
Finish: Rich, with a nutty oiliness alongside sweet butterscotch, baked banana, earthy nutmeg and a warming ginger and cinnamon spice.

UK Tax Burden Hurting Scotch Whisky

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75% of companies expect to defer investment, or invest outside of the UK due to the high tax burden
One in four Scotch distillers expect to make job cuts as a result of economic headwinds
76% say an increase in duty would make them less likely to take forward capital investment and recruitment

Three in four Scotch Whisky companies will defer UK investment, or invest elsewhere, due to the high tax burden, according to research undertaken by the Scotch Whisky Association (SWA). The SWA represents over 90 companies from across the Scotch Whisky industry, that collectively account for the majority of Scotch Whisky production (around 97% of the industry).

India is likely to be one of the destinations for investment as enunciated earlier by the SWA Chief Executive, Mark Kent who had stated after the India-UK free trade agreement was signed that “The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.”

Kent had mentioned how “India is Scotch whisky’s largest export market by volume, with the equivalent of more than 192 million bottles exported there in 2024. The volume of Scotch whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement announced in Spring 2025.”

Over two thirds of price goes in taxes

Going back to the research, undertaken between February and June 2025, reveals the extent of concern companies face about the current levels of alcohol duty in the UK – with over two thirds of the average-priced bottle of Scotch Whisky collected in tax.

Following a 10.1% rise in duty in March 2023, and a 3.65% rise announced in October’s Budget, 87% of respondents to SWA’s members’ survey expressed concern that the rate of excise duty will rise once again in this Autumn’s Budget.

Any further rise in duty will have an impact not only on investment, but also recruitment, according to the companies – at a time where the whole industry employs or supports 66,000 jobs across the whole UK. A quarter of companies now expect their overall headcount to decrease given the current levels of alcohol duty.

As well as direct job impacts, there is increasing risk of knock-on job losses across the extended supply chain as distillers reduce production in the face of global tariffs impacting exports.

This research comes as the industry faces significant strain. At the start of the year, over half of those surveyed expected operational costs from Government policies – for example, EPR fees, NIC increases, and tariffs – to increase by 10%; with 40% now expecting that figure to be over 20%. Despite the increased duty levels, HMRC data shows that Treasury spirits duty receipts have not increased and failed to deliver the forecasted revenue growth.

Kent added, “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth.

“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances.

“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the Government, but it is costing jobs and investment.

“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”

Scotch Whisky Industry Records £5.4BN Global Exports in 2024

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High taxes on Scotch whisky, specifically a recent 10.1% duty increase and a subsequent 3.65% increase, are hurting the UK alcobev industry by increasing costs for consumers and businesses, potentially leading to reduced investment and job losses, and ultimately impacting the economy. The industry argues that these tax hikes are counterproductive, leading to decreased government revenue and stifling growth.

The Scotch Whisky Association (SWA) has released global export figures that show the value of Scotch exports stood at £5.4bn in 2024. The equivalent of 1.4bn 70cl bottles of Scotch whisky were exported last year, equating to 44 per second.

The figures, released, show a decrease of 3.7% on 2023 exports by value. The Scotch Whisky Association has called on the UK and Scottish Governments to provide more support for the industry as distillers warn that the combination of pressure on consumer spending, increased domestic tax and regulation, and turbulent global trade, may continue to impact exports into 2025.

Exports by volume have increased by 3.9%, which the industry says reflects the changing trends in global consumer preferences and challenging trading environment.

India has regained its position from France as the world’s number one Scotch whisky export market by volume, with 192m bottles exported, while the United States retains its long-held position as the largest export market by value, worth £971m in 2024.

However, the whisky industry has warned that global trading conditions remain turbulent at the beginning of 2025 and have called on the UK government to do what it can to mitigate growing domestic pressures on the industry. This includes reducing excise duty on the industry, with 70% of the average priced bottle now collected in tax, reconsider the financial impact of Extended Producer Responsibility (EPR), and accelerate trade talks to reduce tariffs and market access barriers in key markets, like India.

Commenting on the export figures, Mark Kent, Chief Executive of the Scotch Whisky Association said, “Despite the resilience of the Scotch Whisky industry, 2024 has been a challenging year.

“At home, distillers are being stretched to breaking point, as consumers bear the brunt of a 14% increase on the tax on every bottle of Scotch Whisky in the last 18 months alone. The cumulative effect of inflationary impacts on input costs such as cereals, energy and shipping, and the increased tax and regulatory costs, including the substantial cost of EPR coming later this year, are being fed through to consumers when they are tightening their belts.

“Overseas, the tectonic plates of trade are shifting, and exports to traditionally strong markets in the EU and North America have become much more challenging. We continue to support UK Government to promote strong and open trade relations with key export markets around the world, and particularly to advance negotiations on FTA with India, and engage with the US Administration. The United States remains a key market for Scotch, and where the industry contributes to the US economy through direct investment and jobs.

“But support for the industry’s global success starts at home. For too long, the industry has been taken for granted, with the misguided and simplistic belief that decisions taken in Scotland and the wider UK won’t impact an industry which exports 90% of its product, supports a large local supply chain and plays a valuable part in attracting tourists to Scotland. The Scotch whisky industry is a proven driver of economic growth, jobs and investment, and needs an environment free from the shackles of excessive taxation, regulation and uncertain operating costs. The UK government must redouble its efforts to back Scotch producers to the hilt, as promised by the Prime Minister.”

These are challenging times for the beverage alcohol industry. Changing weather patterns and wildfires are affecting production of essential ingredients like grapes, barley, and hops. Many consumers are switching to low- and no-alcohol beverages. And now, tariffs.

Research by the Scotch Whisky Association (SWA) indicates that a high tax burden is causing three out of four Scotch whisky companies to either defer or shift investment away from the UK. This reluctance to invest can impact expansions, infrastructure improvements, and innovation within the industry.

Furthermore, a quarter of distillers are considering reducing headcount due to economic pressures and the current alcohol duty levels.

The industry currently supports 66,000 jobs across the UK, and any further tax increases could lead to a decline in employment within the sector and its related supply chain. High domestic taxes can make Scotch whisky more expensive compared to other spirits, both domestically and internationally, potentially impacting its competitive edge.

Tariffs already add pressure, and high domestic taxes further exacerbate this. When a 25% US tariff was imposed on single malts in 2019 (later suspended), the industry lost over £600 million in exports to the US over 18 months. This highlights how external factors, combined with domestic tax burdens, can significantly hinder export performance.

Despite duty increases, HMRC data hasn’t always shown the expected rise in spirits duty receipts. This suggests that excessive taxation can potentially discourage consumption, leading to lower-than-anticipated tax revenues, a point raised by the SWA.

While recent changes to alcohol duty have included a draught relief to support the hospitality industry, the overall duty increases can still impact the price of drinks, including Scotch whisky, in bars and restaurants. This can affect consumer spending in the on-trade sector and subsequently impact the businesses that rely on alcohol sales.

Alcohol taxes are implemented to generate revenue and address public health concerns, excessive or poorly structured taxes can have detrimental consequences for the UK alcobev industry, particularly Scotch whisky, by impacting investment, jobs, exports, and competitiveness.

Scotch Whisky Association unveils GI map

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The Scotch Whisky Association (SWA) has unveiled an interactive map showcasing the breadth of legal protection for Scotch Whisky around the world. Scotch Whisky is specifically protected in a number of different ways around the world, including as a Geographical Indication (“GI”), through bilateral agreements between the UK and third countries, through Certification Trademarks or Collective Trade Marks, and in the domestic legislation of some countries.

These protections mean that the description “Scotch Whisky” can only legally be used on whisky wholly produced and verified in Scotland under the terms of the Scotch Whisky Regulations 2009 and Product Specification for Scotch Whisky.

Considered the “gold standard” of protection, GI status provides a robust legal framework for action against any infringement. It allows court proceedings to be initiated against counterfeiters, with the possibility of damages, seizure, and even destruction of fake products.

The trade association successfully registered “Scotch Whisky” as a GI in Azerbaijan at the end of last year. It was the latest market to grant Scotch Whisky GI protection and joins over 85 others in providing this specific level of legal protection.

Different types of protection for Scotch Whisky do not deliver the same level of protection or the same effectiveness, with some markets offering one type of protection or another but little enforcement. The SWA’s Legal Affairs team works closely with in-market advisors to determine the best form of protection for Scotland’s national spirit.

Alan Park, Director of Legal Affairs at the Scotch Whisky Association, said, “Scotch Whisky’s global reputation means that there are many who want to take advantage of it by suggesting that their products are Scotch Whisky when they are not. Strengthening protection around the world and taking action to prevent the sale of fake products to protect Scotland’s national spirit is a key priority for the SWA.

“We thank the UK government and our local lawyers in different markets for their support in securing legal protections around the world, giving consumers confidence in the authenticity and quality of Scotch Whisky sold in their local market.”

Tomintoul 12-Year-Old Unveiled

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Angus Dundee recently unveiled its latest expression – the 2012 vintage Tomintoul 12 Year Old Oloroso Sherry Cask Finish. This annual release has been crafted by its Master Distiller, Robert Fleming, who selected single malt distilled in 2012, initially matured in exceptional ex-bourbon American oak casks.

The single malt is then finished in the finest Oloroso Sherry butts sourced from Andalucía, Spain, adding a rich layer of complexity. On the nose, there is sweet aromas of dried fruits, crème caramel, and roasted nuts. The palate reveals buttery layers of golden syrup and brittle toffee, while the finish is long and warming, with notes of maple flapjacks, candied pecans and warming wood spices.

The Oloroso Sherry casks elevate Tomintoul’s character, imparting deep fruit flavours and creating a whisky with exceptional depth.

Shah Rukh Khan’s D’YAVOL Inception Wins Gold at Berlin

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D’YAVOL Inception, the flagship blended malt Scotch whisky from D’YAVOL Luxury Spirits, has been awarded Gold at the prestigious Berlin International Spirits Competition (BISC) 2025. The Berlin International Spirits Competition stands out as the only European spirits competition judged exclusively by trade buyers, including sommeliers, beverage directors, and retail experts from across the continent. Spirits, RTDs, and non-alcoholic spirits are evaluated based on category and actual price, ensuring a real-world assessment of quality and value.

Shah Rukh Khan, Co-Founder, D’YAVOL, says, “Consistent recognitions like these fuels our drive to keep pushing boundaries and setting new standards. It’s always rewarding to see our efforts acknowledged on a global stage.”

Inception is a blend of eight rare single malts, selected from Scotland’s whisky regions — Speyside, Highland, Lowland, and the Islands. Aged up to 12 years, Inception undergoes an extended maturation in first-fill Tawny Port and rare Madeira casks, adding layers of depth and richness.

Launched in 2023, this non-chill filtered whisky preserves its full depth of flavour, mouthfeel, and character. Its complex profile unfolds with rich notes of dark chocolate, dried fruit, and oak spice, complemented by subtle hints of smoked wood, ripe plums, spiced vanilla, and a gentle smokiness.

Bunty Singh, Co-Founder, D’YAVOL, says, “Winning multiple international awards including ‘Best Overall Scotch’ at the New York World Spirits Competition and now a gold medal at the Berlin International Spirits Competition 2025 is an incredible honour. These back-to-back wins reaffirm our commitment to crafting spirits that stand out on the world stage.”

Alongside Inception’s Gold medal at BISC 2025, the brand’s Single Estate Vodka was also awarded a Silver Medal.

Trump The Economic Disruptor

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• Impacts Alcobev Sector

• Economic Uncertainty Prevails

The second term of Donald J. Trump as the United States President which began early this year has disrupted the world economic order. Trump’s sweeping tariffs on imports from almost all countries, including the US’s allies, has led to an international trade war, the ramifications of which are being felt in the stock markets, in trade disruption and creating economic uncertainty globally.

However, on April 9, under severe pressure from the bloodbath in the global stock markets and world leaders criticizing his move, Trump has paused for 90-days most of his exorbitant tariff hikes to 57 countries but with a baseline tariff of 10% while going aggressive on China by imposing an astounding 125% tariff.

India termed ‘Tariff-King’

As regards India, which is one of the US’s biggest trading partners in Asia, Trump has imposed a ‘discounted’ reciprocal tariff of 26%, while calling India the ‘tariff king’. Trump has claimed that the reciprocal tariff is aimed at countering unfair trade practices. The 26% tariff came into effect from April 9. Though he claimed that the Prime Minister, Narendra Modi is a great friend of his, Trump said India was charging 52%, while the US was charging almost nothing.

India subsequently slashed duty on bourbon whiskey from 150% to 100%, making the Indian liquor manufacturers take up the issue. The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Anant S. Iyer said the Indian alcoholic beverage industry is already at a disadvantage compared to manufacturers from developed countries due to high capital and operational costs, evaporation losses, and restrictive licensing regimes. He said, “The government needs to safeguard the interests of Indian liquor manufacturers when deciding on issues related to customs duty cuts and other concessions under FTAs.” The CIABC wanted the state governments to withdraw all excise concessions given to imported liquor, arguing that the customs duty cuts announced would harm Indian products in both the spirits and wine categories.

Bilateral Trade

The bilateral trade between India and the US was pretty balanced at 10.73% till the Trump disruption. America accounted for about 18% of India’s total goods exports, 6.22% in imports with about 30 sectors (6 in agriculture, 24 in industry) exporting to the US. As regards alcohol, wine and spirits, the tariff hike at 122.10% has come into effect. As per the data from the Export Import Data Bank (EIDB) of the Ministry of Commerce & Industry, in FY24, India imported spirits worth $23.09 million against exports of only $8.03 million with companies such as Radico Khaitan, Amrut Distilleries, Piccadilly Industries, being the prominent ones.

The concern among Indian companies is that lower import duties might push the prices of premium liquor down, thus making Indian premium liquor face stiffer competition. However, at a panel discussion organised by Ambrosia during INDSPIRIT 2025, the Secretary General of the International Spirits and Wines Association of India (ISWAI), Suresh Menon clearly stated that there was need to rationalise the tax structure, while agreeing that the Indian import duties on spirits was exceptionally high.

Scotch Whisky Association ‘disappointed’

Globally, the tariff war is impacting almost all sectors, including the alcobev sector. The Scotch Whisky Association expressed disappointment with Trump’s tariff moves. With Trump announcing import duties, including a 10% levy on all UK goods and a steeper 20% rate for imports from the European Union, taking effect on April 5, the alcobev sector was going to be adversely impacted. “The move, one of the most aggressive protectionist measures in recent years, has sparked concern across multiple sectors, including scotch whisky producers. A spokesperson for the Scotch Whisky Association said,”The industry is disappointed that Scotch Whisky could be impacted by these tariffs. We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”

Wine sector concerned

It is not just the Scotch whisky producers who are worried, even the bourbon industry from the US is. The bourbon industry which is the backbone of Kentucky economy fears that it may get caught in the crossfire of the trade war, if other countries impose tariffs on American whiskey. There has been a lot of noise on how in the short-term Scotch whisky and European wines may become that much costlier. France’s Bourgogne Wine Board (BIVB) has said that the levies have “pushed our wines past a psychological price threshold”. French wines are subject to 20% tariffs under the new tariff rates.

The IWSR, in its analysis, has said that the new import tariffs will have serious consequences for beverage alcohol in the US, but the exact picture is complex, nuanced and subject to a host of uncertainties.

The IWSR said that with tariffs introduced on imports from Canada and Mexico and potential EU tariffs in discussion, a number of single origin beverage alcohol categories are most at risk – products with a legally protected designation of origin, meaning that they cannot be “re-shored” and produced in the US. These include agave spirits, Canadian whisky, Irish whiskey, Cognac, Champagne and Prosecco. Mexican beer imports would also be affected. The UK is trying to negotiate a separate trade deal with the US to head off tariffs to cover categories such as Scotch whisky.

“The second Trump Administration’s policies on tariffs will almost certainly be net negative for total beverage alcohol (TBA) in the US market, with global implications likely to be more limited, but there is major uncertainty about the extent of the impact,” says Marten Lodewijks, President IWSR US.