Former British Ambassador to Argentina, Mark Kent, has been appointed as Chief Executive of the Scotch Whisky Association.
He succeeds Karen Betts, the first woman to head-up the SWA, who leaves to become Chief Executive of the Food and Drink Federation.
Mark Kent, who takes up his new role in January, has spent over 30 years with the Foreign, Commonwealth and Development Office and has been Ambassador to Argentina, Thailand and Vietnam as well as roles for the British embassies in Mexico City, Brasilia and the UK’s representation to the European Union.
He said, “I am delighted to have been appointed as CEO of the Scotch Whisky Association. As a former Ambassador, I know in what high regard the Scotch Whisky industry and the SWA is held worldwide.
“After a challenging period, I’m looking forward to helping the industry to unleash its full potential and enable people across the globe to discover and enjoy our premium and iconic product. The Scotch Whisky industry has a fantastic history, great stories to tell, and continues to innovate. I can’t wait to get started.”
Scott McCroskie, chairman of the SWA Council, added, “Mark brings with him an outstanding depth of experience which will allow the SWA to continue to support the industry’s interests around the world.
“We look forward to working with him as the industry looks to make new ground in key growth markets and build a sustainable future for the industry by continuing our push towards net-zero.”
The Scotch Whisky Association (SWA) has announced that three bottles of the limited edition blended Scotch Whisky, created especially for the COP26 conference in Glasgow, will go under the hammer later this month in what whisky bosses are describing as a ‘once in a lifetime opportunity’ to own a piece of Scotch Whisky history.
The SWA has partnered with Whisky Auctioneer to auction three bottles of the COP26 blend in aid of three Scottish charities which focus on caring for the environment – the RSPB, Scottish Wildlife Trust and John Muir Trust. The funds raised by the auction will be divided evenly between the charities at the end of the year.
The COP26 limited edition blended Scotch Whisky was created by the industry to mark November’s United Nations’ 26thConference of the Parties in Glasgow. Blended and bottled in the host city, it is a limited run of just 900 bottles, comprised of whiskies from 26 distilleries throughout Scotland’s five whisky regions. Its packaging is at the cutting edge of sustainable innovation, with the bottle itself made of 97% glass, the stopper made from recycled wood and cork dust, and a label created from biproducts of the whisky production process, including barley. The carton is made of 100% recycled cardboard.
The auction, which will run from the 26th November – 6th December via the Whisky Auctioneer website comes after the SWA revealed new data showing the industry’s latest progress towards key sustainability targets since launching its first Environmental Strategy in 2009, including a 53% reduction in greenhouse gas emissions, an increase in the use of non-fossil fuels from 3% to 39%, and a 13% improvement in energy efficiency.
Karen Betts, Chief Executive of the Scotch Whisky Association said, “COP26 in Glasgow has been a great opportunity for the Scotch Whisky industry to engage with governments and other partners on how we are working towards reaching net zero by 2040, as well as meeting our other environmental targets including on water efficiency, packaging and caring for the land. Our limited edition blended COP26 Whisky serves as an illustration of how distillers have come together to fulfil our responsibility to ensure that Scotch Whisky has a future as rich as its past.
“Whisky Auctioneer’s once in a lifetime sale of three bottles of the COP26 Whisky will, I hope, attract a lot of interest – not only from whisky fans but also from people everywhere who have supported the goals of negotiators at COP26 as they have worked to preserve our planet for future generations. Their support in this auction will help the practical work that the RSPB, Scottish Wildlife Trust and John Muir Trust do every day to protect Scotland’s natural environment today and into the future.”
Karen Betts, the first woman to lead the Scotch Whisky Association (SWA), is leaving the industry body after four years in the post to take on a new role as head of the Food and Drink Federation. The organisation has begun the process of appointing a new chief executive.
SWA chairman Scott McCroskie said that Karen Betts had successfully steered the industry through “a turbulent period”, including the UK’s departure from the EU and transatlantic trade wars.
He said, “She has steered the industry successfully through a turbulent period, critically while punitive tariffs were imposed on Scotch whisky by the United States, through the UK’s departure from the EU, and during the Covid-19 pandemic.
“Her leadership has helped the industry emerge in a strong and forward-looking position.”
A lawyer by background, Karen Betts previously worked in the Foreign Office and diplomatic service, latterly as ambassador to Morocco. Her career included roles in the Cabinet Office and the Joint Intelligence Organisation and she remains an adviser to the UK government’s Board of Trade and chairwoman of the CBI’s International Trade and Investment Council.
She is also a member of the Scottish government’s Trade Board.
Cutting tax on Scotch Whisky and other spirits in the Budget could give Chancellor Rishi Sunak an extra £750 million to spend over the next three years, according to an analysis of alcohol taxation.
The figures, based on modelling conducted by the Centre for Economic and Business Research (Cebr), show that HM Treasury can generate an additional £748m in duty and VAT over a three year period by cutting excise duty on spirits by 5%.
A reduction of the significant tax burden on Scotch Whisky, which currently sees £3 in every £4 spent on the average-priced bottle of Scotch Whisky go directly to HM Treasury in taxes, would actually drive government revenues, boost the hospitality industry – which has been one of the worst impacted by Covid-19 – and lift the nation’s spirits after a challenging year for industry and consumers.
The new figures have been released as the Scotch Whisky Association presents its submission to the Chancellor ahead of the 3 March budget.
The industry has also stressed to the Chancellor the need to support the industry in the face of punitive tariffs imposed by the United States on exports of Scotch Whisky. These tariffs have cost the industry £450m over the last fifteen months, and losses continue to rise. That Scotch Whisky is paying the price of a trade dispute between US and European aircraft manufacturers is creating real pressure on jobs and businesses and has compounded the losses the industry has also faced because of the global pandemic.
The impact of US tariffs on the industry has added to pressure on the Chancellor to go further than the freeze on duty he announced in the last UK budget.
Karen Betts, Chief Executive of the Scotch Whisky Association, said, ” The last year has been very challenging for the Scotch Whisky industry, with the combined impact of Covid-19 and US tariffs. Scotch Whisky producers, large and small, are facing considerable losses and, as a result, we are urging the Chancellor to cut spirits duty in the Budget.
“A cut in duty will also help the hospitality sector, with pubs, bars and restaurants across the UK crying out for continued support.
“The industry is not going cap in hand to the Chancellor – but in order that we can be a partner in recovery, the Chancellor must use the tax system to help grow the economy. A cut in spirits duty will deliver additional revenue for the government as well as supporting our industry as we absorb millions of pounds of losses as a result of UK government subsidies to aerospace, which sparked the trade dispute that has seen 25% tariffs on exports of Scotch Whisky to the United States.
“With £450 million in losses to date and counting, jobs and businesses are now at risk, in Scotland and throughout our UK supply chain. The industry needs a package of support from the UK government while distillers continue to face crippling tariffs, and the Chancellor can start by cutting duty in the budget.”
The Scotch whisky industry has launched a diversity and inclusivity charter in a bid to improve equal opportunities across the sector. Developed by trade body the Scotch Whisky Association, it pledges a commitment to diversity across the industry’s global workforce.
The launch follows a week where there was a social media row about sexism in the whisky industry when Becky Paskin, former editor of scotchwhisky.com, took Jim Murray to task for objectifying women in his ‘Whisky Bible’ publication.
The Charter sets a series of minimum benchmarks for all SWA member companies to meet and sets a clear path for companies – large and small – to work together to ensure that the Charter commitments are fulfilled.
Said Chief Executive of the SWA Karen Betts, “The Scotch Whisky industry is launching our Diversity and Inclusivity Charter today, doubling down on our commitment to actively welcome people from all backgrounds to work in our companies. Scotch Whisky is hugely diverse in itself, with our vast range of whiskies coming from all shapes and sizes of distilleries across the four corners of Scotland.
“Through the Charter, we are underscoring our commitment to attract a wide range of people to work for the industry in Scotland and around the world at all levels and at all stages in their careers. Our goal is to ensure that our workforce is as diverse as our whiskies and the people who enjoy them.”
She continued, “The Charter is just the start of the conversation. Many of our member companies are already engaging in a range of activities and programmes to improve diversity and inclusion, from flexible hours, to parental leave, mental wellbeing initiatives, and embracing new recruitment processes. What the Charter will now do is foster collaboration between our companies, so everyone can learn from each other’s experiences and ensure we can move forward step by step, positively and collectively, on this important journey.”
Scott McCroskie, Chairman of the SWA Council and Chief Executive of Edrington, said, “The launch of the Diversity and Inclusivity Charter is an important statement of intent from the Scotch Whisky industry to ensure the sector is a representative and welcoming place to build a career.
“Business decisions are stronger when a diverse range of voices have the opportunity to feed in, so the Charter is also vital to the continued strength of the industry. I look forward to working alongside the SWA and fellow member companies to fulfil the commitments outlined in the Charter, and fuel the Scotch Whisky industry’s success in the long term.”
The Scotch Whisky Association (SWA) has confirmed the internal promotion of Graeme Littlejohn to the position of Director of Strategy and Communications.
Littlejohn joined the SWA in 2015 and has over 10 years experience working in political communications. Prior to joining the SWA, he served as Head of Office to the Chief Secretary of the Treasury at HM Treasury and has previously held posts in the Scottish Parliament, European Parliament and Westminster.
He will oversee the SWA’s external relations including, public affairs, media relations and stakeholder engagement.
SWA Chief Executive Karen Betts said, “I am delighted that Graeme will be moving into the role of Director of Strategy & Communication. He has been a valuable member of the SWA team for some years, and has now proved himself ready to step up into a broader role, where he will have oversight of the delivery of the SWA’s five-year strategy, the industry’s political engagement, and of developing new and innovative ways to tell the story of Scotch.”
Graeme Littlejohn said, “There are few industries with a story to rival that of Scotch Whisky. It is a privilege to have the opportunity to tell that story, and I’m looking forward to ensuring more people discover the heritage and unrivalled quality of Scotland’s national drink in my new role. “The industry does not take its position as the world’s premier whisky for granted. We operate in a competitive global marketplace and I will work closely with the industry to ensure the foundation for to future growth is strong.”
The Scottish Government has won its five-year fight to bring in Minimum Unit Pricing (MUP) to Scotland, which will make it the first country in Europe to do so. The top court in the land, the UK Supreme Court, ruled that Scotland can set a minimum price for alcohol, rejecting a challenge by the Scotch Whisky Association (SWA).
In a unanimous judgment, seven Supreme Court judges said the proposed legislation did not breach European Union law. The judges ruled the measure was a “proportionate means of achieving a legitimate aim”.
Scotland’s First Minister Nicola Sturgeon tweeted, “Absolutely delighted that minimum pricing has been upheld by the Supreme Court. This has been a long road – and no doubt the policy will continue to have its critics – but it is a bold and necessary move to improve public health.”
The proposed MUP of 50p per unit of alcohol now looks likely to be introduced as early as next April.
The Scotch Whisky Association, which had fought the legislation for five years on behalf of its members, said it accepted the Supreme Court’s ruling. Karen Betts, Scotch Whisky Association chief executive, said, “We accept the Supreme Court’s ruling on minimum unit pricing (MUP) of alcohol in Scotland. Looking ahead, the Scotch Whisky industry will continue to work in partnership with the government and the voluntary sector to promote responsible drinking and to tackle alcohol-related harm.”
Paul Bartlett, Group Corporate Relations Director, Tennent’s owners, C&C Group, which supported MUP commented, “C&C Group plc has been a strong and vocal supporter of Minimum Unit Pricing since it was first proposed in 2011. We welcome today’s landmark decision. It is the right move to make; a progressive step forward in tackling the problems of alcohol misuse in Scotland and we congratulate the Scottish Government on its perseverance.”
He continued, “Although the majority of Scots enjoy alcohol responsibly, we are concerned about the availability of strong, cheap alcohol and its correlation with harmful drinking that causes misery across Scotland. As part of a package of measures, Minimum Unit Pricing will help to address this.
“Now that the Supreme Court have made their ruling, we urge the industry to get behind the decision. We’ll be working with the Scottish Government and our customers over the coming months to support the successful introduction of Minimum Unit Pricing.”
Paul Waterson, Chief Executive of the Scottish Licensed Trade Association, who also supported Minimum Unit Pricing commented, “The relationship between low prices and increased consumption is obvious. Supermarkets strategy of using alcohol as a loss leader, very often charging prices cheaper than water, which is totally irresponsible, is a major factor in causing much of the alcohol abuse we see in Scotland today. Minimum pricing will be a major element in eradicating these problems.”
“Cheap priced alcohol has turned Scotland into a nation of stay at home drinkers. 72% of total alcohol sales in Scotland are off sales, 80% of this total is sold by supermarkets. When people drink in uncontrolled environments alcohol related problems increase significantly.”
He concluded, “Our market needed intervention to bring back price stability. The market could not correct itself – it needed robust government action. The only efficient way of doing that is by minimum pricing. We applaud the Scottish Government for their policy .”
“Already this year we have seen in the run up to Christmas many television adverts advertising irresponsible supermarket deals on alcohol which will seduce people into drinking more than they would normally. Thanks to this legislation loss leading of alcohol at child friendly prices will become a thing of the past.”
Karen Betts, Chief Executive of the Scotch Whisky Association (SWA), has stressed that the Scottish and UK governments need to work with the whisky industry as the Brexit process unfolds.
Karen, who became the first woman to take charge of the SWA back in March, made the point after encouraging whisky sales statistics were revealed as part of a report into the performance of Scotland’s GDP in the first quarter of 2017.
She said, “To ensure this success into the future, it’s vital that the Scottish and British governments work with the industry to ensure our needs are taken into account as Brexit progresses, including by supporting an open, global trade policy; securing a comprehensive free trade deal with the EU, and the benefits of EU free trade agreements with third countries around the world until ambitious new bilateral trade deals can be negotiated; and supporting a tax and regulatory agenda at home that provides a platform for international growth for British exporters.”
The number of bottles of Scotch released for sale in the UK went from 17.5 million in the first quarter of 2016 to 18.4 million in the first quarter of 2017, a 5% jump. GDP as a whole grew 0.8% in the first three months of the year.
Karen added, “It’s very encouraging to see growth in the Scottish economy in the first quarter of the year, and the substantial contribution Scotch Whisky has made to that. The Scotch Whisky industry, which employs more than 10,000 people in Scotland, adds almost £5 billion of value annually to the Scottish economy. The economic growth we see in the figures announced today reflects the performance of Scotch Whisky in the first quarter of the year, where Scotch exports were £878 million, up 10% on the first quarter of 2016.”
During the build-up to the general election in June the SWA released their own manifesto, calling on political parties to support Scotch in six different ways, starting with a review of the excise duty system.
Negotiations regarding Britain’s departure from the European Union commenced in Brussels on the 19th of June, headed up by Brexit Secretary David Davis and the European Commission’s Chief Negotiator Michel Barnier.