Limited whisky supply
All available data indicate that the supply of Scotch whisky is not keeping pace with growing demand. Despite the growing number of distilleries and the plans of many distilleries to increase production, it seems that this trend is not endangered in the long run.
In 2019, Scotch whisky export reached record levels both in volume and value. The Scotch Whisky Association, citing the HM Revenue & Customs (HMRC) data, announced that Scotch whisky export reached £4.91 billion last year, which was an increase of 4.4% over 2018. Meanwhile, the equivalent of 1.31 billion 0.7 cl bottles of whisky was sent abroad, which means a 2.4% increase compared to the previous year. Investors from Asia have an undoubted impact on the market - according to Scotch Whisky Association, sales to Taiwan, India and Japan in the first half of last year increased by 22, 19.7 and 16.1% respectively. At the same time, single malt whisky deliveries to these countries account for almost 30% of total export.
Whisky casks purchased by our investors are a qualitative component of blends, still constituting the majority of production in Scotland. Despite the growing number of distilleries in Scotland, the demand for Scotch whisky, especially in Asian countries, is far greater than production capacity.