Industry News: Russia to impose 200% additional tariffs on imported alcoholic beverages; UK and India expected to reach agreement lowering whisky tariffs; Italy’s wine stockpile reaches 4.1 billion liters

In May 2024, Putin instructed that part of the revenue generated from the newly imposed tariffs be allocated to tourism—linking tariff policy directly with domestic investment. However, over two years later, it remains unclear whether the government has adopted this measure. If implemented, the presence of Western wines in Russia would be further weakened. List of ‘Unfriendly Countries’ (not exhaustive) Major wine-producing countries: Italy, France, Spain, Germany, Portugal, Austria, Greece, Hungary, Romania, Bulgaria. Secondary/emerging wine-producing countries: Slovenia, Croatia, Slovakia, Czech Republic, Luxembourg, Cyprus. EU member states with minimal wine production: Belgium, Netherlands, Poland, Denmark, Sweden, Finland, Ireland, Estonia, Latvia, Lithuania, Malta. Non-EU wine-producing countries: United States, Australia, New Zealand. 02. UK trade delegation visit to India yields deal cutting tariffs by half, opening up the South Asian market Earlier this month, following a visit to India led by the UK’s Secretary of State for Business and Trade, the UK and India are set to sign a new trade agreement—one expected to support hundreds of jobs. Against the backdrop of this new UK–India trade agreement, London is accelerating exports and deepening ties with emerging markets, while simultaneously reducing risks associated with overreliance on a limited number of overseas markets. This visit forms part of the UK’s broader strategy to strengthen trade links with major emerging economies and reduce dependence on a relatively small number of overseas markets—particularly significant for the alcoholic beverages sector. India has already slashed the import tariff on Scotch whisky from 150% to 75%, opening the door for UK spirits exporters. Notably, the Scotch Whisky Association (SWA) participated in the Indian delegation, underscoring the UK’s efforts to translate policy commitments into tangible sales and on-the-ground implementation. For businesses, however, tariff reduction alone falls far short of operational readiness—securing local partners, establishing distribution channels, and persuading consumers to adopt the product remain essential next steps. India—with its vast population and rising per capita income—has long been viewed as a key potential market for Scotch whisky. Yet persistently high import duties have historically stifled growth in this category. While tariff reductions do not eliminate competitive pressures, pricing challenges, or the complex web of alcohol regulations across India’s individual states, they have nonetheless altered the landscape in certain markets. That said, finalizing a comprehensive UK–India trade agreement may take several years of negotiation. In the interim, companies typically assess its value based on whether it delivers concrete orders, strengthens partner relationships, and facilitates smoother market access. Amid frequent changes in the UK government, ministers are highlighting recently concluded deals and associated job creation to demonstrate that the UK–India agreement is delivering commercial outcomes—not merely diplomatic milestones. According to the UK government, business leaders participating in the delegation expressed optimism about future growth and cooperation between the two countries. This sentiment reflects a widely held belief among UK exporters: India holds long-term demand potential across consumer goods, professional services, and industrial sectors—but success hinges on sustained investment and robust local relationships. 03. Italy’s wine stockpile rises 14.2% year-on-year to 4.1 billion liters According to a recent report from Italy’s National Electronic Wine Register system, published by the Italian Inspectorate for Agricultural Food Quality Protection and Fraud Prevention (ICQRF), Italy’s total wine stockpile stood at 4.1 billion liters as of 30 September this year—based on data analysis covering approximately 2,360 wineries—a 14.2% increase compared to the same period last year.

In 2021, global exports of Scotch whisky grew nearly 20%

According to data from HM Revenue & Customs (HMRC), cited by the Scotch Whisky Association (SWA), exports of Scotch whisky rose by 21% in 2021, reaching nearly 1.4 billion bottles—approximately 73 million more than the pre-pandemic (2019) record. The pandemic and punitive U.S. import tariffs—the most lucrative market for Scotch—combined to deliver a disastrous year for Scotch whisky exports in 2020, pushing volumes to a 10-year low. The 2021 recovery was driven by an impressive rebound in Latin America and strong growth across the Asia-Pacific region, where shipments increased by 70.7% in value and 21.4% in volume. Exports to the United States rose by 8.4%, though growth was tempered by the continuation of import tariffs for the first three months of the year. Exports to EU countries rose by 8.2%. The SWA highlighted standout performance in emerging economies: shipments to China rose 84.9% in value; those to India rose 42.9% in value—and 44.3% in volume—surpassing the U.S. to become Scotch whisky’s second-largest export market by volume, behind only France. Meanwhile, shipments to Brazil surged 80.5% to 82 million bottles. Mark Kent, recently appointed Chief Executive of the Scotch Whisky Association (SWA), stated that the global footprint of the Scotch whisky industry in 2021 clearly signals its path toward recovery. He noted that both value and volume are rising as consumers return to pubs and restaurants and as travel and tourism rebound—marking a return to a degree of normalcy after an exceptionally uncertain period for consumers and businesses alike. Mark Kent urged the UK and Scottish governments to help the Scotch whisky industry overcome ongoing challenges—including those linked to the pandemic, supply-chain disruptions, and inflationary pressures—by fully leveraging ‘global opportunities’, such as the current Free Trade Agreement (FTA) negotiations with India.

Scottish Leader Raises Scotch Whisky Tariff Concerns During India Trip

21 hours ago

Scottish First Minister John Swinney raised concerns with Indian officials regarding bulk Scotch whisky tariffs, challenging a move that excludes concentrates from reduced rates under the UK-India free-trade deal.

reuters

2026-10-30

Scottish Leader Raises Scotch Whisky Tariff Concerns During India Trip

Scottish Leader Raises Scotch Whisky Tariff Concerns During India Trip

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