For most single malt enthusiasts, whisky is pleasure - pure pleasure. But for many Scots, whisky is business. In fact it's one of the biggest businesses in Scotland. Uisge beatha ranks fifth in export sales of manufactured goods after cars, aircraft, North Sea oil and derivatives, and high technology products. Exports are 90% of all sales and account of over £2 billion. The whisky industry employs about 12,000 people and procures over £2 billion in good and services in Scotland.
Not surprisingly, the country with the largest export in sales is the United States at £269.6 million in 1998. However, France imports the most quantities: 35.5 million liters. Apparently, the French prefer cheaper brands than Americans.
As with any industry dependent upon exports, the whisky business is greatly concerned with excise duties and open international markets.
Based on alcohol content, whisky is taxed at a far higher rate than either beer or wine: 27.38p per 35ml as compared to 16.10p for beer (half pint) and 18.66p for wine (125ml.)
Whiskies are known by their frequently historic distilleries and their time-honored methods of production. Yet even the single malt whisky industry has seen mergers and buy-outs. In fact, one of the largest whisky corporations, United Distillers & Vintners (ER) Ltd., of Edinburgh owns over twenty-seven distilleries such as Cardhu, Cragganmore, Dalwhinnie, Lagavulin, Oban, Royal Lochnagar, and Talisker.
Sixty-nine of the companies that produce and distribute whisky are members of the Scotch Whisky Association (SWA). This trade association has long lobbied the United Kingdom Parliament on issues including excise duties, international trade, intellectual property rights and trademark law, competition law, and workplace health and safety. With the new Scottish Parliament opening in April 1999, the SWA is focusing on those matters that have been "devolved" including business rates and fiscal issues, product labeling and standards, environmental impacts, health and social aspects of alcohol, and the Scotch Whisky Act which defines the types of whiskies.
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