Whisky News: Experts in the industry have predicted a ‘perfect storm’ as a consequence of the pandemic and soaring demand to hit Scotland’s prized £5billion dram export market.
An article recently published in the Daily Record found that, the whisky industry has experienced its worst supply chain crisis in history, meaning that the best single malt whiskies are set to triple in price next year. Distilleries are predicted to struggle to meet global demand especially over periods such as the festive season, which will lead to years of price rises.
Research conducted by The Sunday Mail also found that whiskies such as 16-year-old Lagavulin (a Christmas gift favourite) has rocketed by £10 since this time last year.
Head buyer, Dawn Davies from The Whisky Exchange, one of the world’s biggest sellers of fine malts explains “During lockdown distilleries weren’t able to get liquid into casks. It’s going to be very interesting what happens in the next 10 or 15 years because there is going to be a massive shortfall.
“The other issue is that absolutely everything – because of Brexit and Covid – is taking a hell of a long time. Everything along the supply chain is taking about three months if it’s coming from anywhere that’s not Europe and even in Europe in some cases. I used to be able to turn stock around in two weeks – now it’s a minimum of a month.”
“It is all adding up to a perfect storm in the industry as a whole at the moment. I think for the next three or four years we are going to see big price increases. Demand is outstripping supply. For older whisky, over 20 years, some of the prices are tripling next year. That could mean a £100 bottle costing £300 and for the younger stuff you are looking at about nine per cent rises.”
“Suppliers aren’t coping, bonded warehouses aren’t coping, the customs and imports authorities aren’t coping. I definitely would say to people that if you have a favourite dram, go out and buy it early. Do your Christmas shopping early because I’m basically not guaranteeing anything to anyone about any stock.”
“Demand for single malt has grown exponentially in the last few years and the distilleries just don’t have the liquid barrel, especially the older stuff, to get the volumes out.”
– Head buyer, Dawn Davies from The Whisky Exchange
Subsequently now is a great time to begin the process or expand your cask portfolio, as
profitability in the future is expected to triple in price due to supply chain crisis.
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