If ever there was a time to invest in whisky casks, this looks like it, with a report indicating the industry is set for a boom.
The latest market intelligence report by HTF MI titled "Global Scotch Whisky Market Research Report 2019” - which despite the title was only published this week - predicts that the sector will see “massive growth” over the next few years.
In its press release, the publisher notes it has studied the prospects of a range of big name drinks makers, such as Bacardi, Beam Suntory, Diageo, Pernod Ricard, William Grant & Sons, Aceo, Ben Nevis Distillery, Brown-Forman, Edrington, Glenmorangie, George Ballantine Son, Gordon & MacPhail, Harvey's of Edinburgh International, International Beverage & Isle of Arran Distillers.
The report seeks to highlight how those particular firms are pushing ahead of the competition, but the overall message is clear: Scotch whisky is set for a great few years of growing sales, increasing global reach and widening appeal to an ever-expanding market.
A key development that may have a major beneficial impact is the suspension - at least temporarily - of the tax on whisky imposed by the Trump administration in the US.
New president Joe Biden has suspended the tariff on goods imported from the UK for a minimum of four months, with a joint statement by the two countries stating that the aim is to “ease the burden on the industry and take a bold, joint step towards resolving the longest-running dispute at the World Trade Organization.”
The dispute arose not from any issue with whisky, but the Boeing / Airbus dispute. If the issues of civil aviation import tariffs can be settled separately, Scotch whisky will be set to enjoy renewed growth in the US.
Chief executive of the Scotch Whisky Association, Karen Betts, said the sector was “breathing a sigh of relief” after 16 months in which experts had fallen by 35 per cent. The industry can now focus on building up trade in the US again, she added.
The fact that the Scotch industry is back in the game in the US means there is even more reason for confidence about the value of investing in whisky casks now.