Brazil Toasts Scotch Whisky with Protected Status, Bolstering Trade and Authenticity in South America

Brazil has granted Scotch whisky a protected designation

The Scotch Whisky Association has announced that this is the first international product to receive this protection since 2019, now ranking alongside tequila, cognac, and champagne.

Wednesday, August 21, 2024, 6:

Brazil has granted Scotch whisky a distinguished protected designation – a move celebrated by the UK's trade secretary during a visit to a Scottish distillery.

In June, during the UK's pre-election phase, Brazil officially acknowledged Scotch whisky, a decision anticipated to enhance distillers' entry into South America's biggest market.

The Business and Trade Ministry estimates that the "geographical indication" status, aimed at combating counterfeits and boosting distillers' confidence, could generate approximately £25 million in value over the next five years.

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While touring Glengoyne Distillery, Trade Secretary Jonathan Reynolds praised Scotch whisky as "a premier Scottish product that enjoys strong global demand."

He stated that Brazil's decision would provide Scottish distillers with the assurance required to export to one of the world's biggest economies, without the worry of competing against counterfeit products and inferior copies.

Mark Kent, the CEO of the Scotch Whisky Association, stated that Scotch whisky is the first international product to receive "denomination of origin status in Brazil since 2019." He noted, "Scotch whisky joins the ranks of tequila, cognac, and champagne, enjoying special legal protection."

"It is essential for instilling trust among countless Brazilians regarding the quality and origin of their purchases."

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In 2023, Scotch whiskey exports reached a value of £5.6 billion, representing 74% of all Scottish food and drink exports and comprising 22% of the total UK food and drink exports.

In recent updates, data from HM Revenue and Customs reveals that following Jeremy Hunt's decision to hike alcohol duty by 10.1% starting 1 August 2023, the Treasury has seen a shortfall of almost £300 million in tax income from Scotch whisky and other spirits. This increase marks the largest rise in over 40 years.

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Data from 1 August 2023 to 31 July 2024 indicates that revenue from excise taxes on spirits amounted to £3.951 billion, a decrease from £4.249 billion recorded during the same timeframe the previous year. This represents a shortfall of £298 million, or £800,000 per day.

The Scotch Whisky Association has appealed to Rachel Reeves, the newly appointed chancellor, to retract the planned increase in duty in the forthcoming budget set for October 30, labeling the rise in taxes as a "disastrous choice".

A spokesperson from HM Treasury stated: "We are completely supportive of the Scotch industry, maintaining the current freeze on alcohol taxes until February, abolishing harsh tariffs, and protecting the sector's interests in trade deals."

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