Brazil has awarded special protected status to Scotch whisky – with the UK’s trade secretary toasting the decision by visiting a distillery in Scotland.
Brazil legally recognised Scotch whisky during the UK’s pre-election period in June and the move is expected to give distillers better access to South America’s largest economy.
The Department for Business and Trade believes the “geographical indication”, which will make it easier to tackle counterfeits and increase confidence among distillers, could be worth around £25m over five years.
Politics latest: ‘A lot of bad news’ expected in chancellor’s first budget
During a visit to Glengoyne Distillery, Trade Secretary Jonathan Reynolds said Scotch whisky is “one of Scotland’s finest products and is in high demand across the globe”.
He said Brazil’s move would give Scottish distillers “the confidence they need to export to one of the world’s largest economies without having to compete with fake knock-offs and pale imitations”.
Mark Kent, chief executive of the Scotch Whisky Association, said it was the first foreign product to be granted “denomination of origin status in Brazil since 2019”, adding: “Scotch whisky now sits beside tequila, cognac and champagne with special legal protection.
“This is fundamental to ensure that millions of Brazilians can have confidence in the quality and history of what they’re buying.”
Scotch exports were worth £5.6bn in 2023 – accounting for 74% of Scottish food and drink exports and 22% of all UK food and drink exports.
Meanwhile, new figures from HM Revenue and Customs showed the Treasury has lost nearly £300m in tax revenue from Scotch whisky and other spirits since Jeremy Hunt, the former chancellor, increased alcohol duty by 10.1% from 1 August 2023 – the biggest of its kind in more than four decades.
Read more:
Whisky’s ingredients ‘can help keep skin healthy’
Whisky industry could help provide sustainable fuel
Figures for 1 August 2023 to 31 July 2024 show excise duty from spirits generated £3.951bn for the public finances – compared to £4.249bn in the same period the previous year – a loss of £298m or £800,000 a day.
The Scotch Whisky Association has urged Rachel Reeves, the new chancellor, to reverse the hike in the upcoming budget on 30 October, branding the duty increase a “calamitous decision”.
An HM Treasury spokesperson said: “We fully back the Scotch industry as alcohol duty will remain frozen until February, punitive tariffs have been removed, and the interests of the sector are defended in trading agreements.”