What that means and how industry challenges have created unique opportunities.
The Scotch Whisky industry is currently facing more challenges than in recent years. However, where there are challenges, opportunities are not too far behind, you just need to know where to look.
The Situation
Industry conditions are shifting; production levels are tightening and some of even the best-known distilleries are scaling back. It’s no secret that the Scotch Whisky industry is facing changes.
Take Suntory Global Spirits, the home of famous brands such as Bowmore and Laphroaig, for example. Reflecting on the broader slowdown taking place across the entire Scotch Whisky industry, they have taken the decision to scale back production, in an attempt to balance inventory levels and ensure long term brand health. This is a substantial operational change that even the most seasoned whisky professionals would not have predicted a few years ago.
The market is also still feeling the economic effects of increased borrowing costs and ongoing global conflicts. Factors that are all contributing to more cautious spending, for consumers as well as producers.
Looking at the current climate – It’s no wonder confidence has waned.
However, it is important to remember that things are rarely ever completely linear. Periods of growth are followed by periods of adjustment which often result in a new normal in which things can thrive. While current challenges have lasted longer than many of us expected, history, and hope, tells us that better times lie ahead. It’s important to think of the positives. One of the biggest of which is the removal of import tariffs into the United States, the most important export market for Scotch by value. This improvement in trading conditions should hopefully help to support demand and provide a stronger platform for future growth.
Yes, the challenges the Scotch Whisky industry is facing are very real and should be monitored, but today’s market is also creating opportunities that did not exist a few years ago.
So, What Are the Opportunities?
The economic pressures and trade constraints currently at play have created a unique situation. At Cask Trade, we are increasingly seeing high-quality aged casks available at reasonable prices, allowing buyers more options than they had when the market was at its peak.
Many successful Scotch collectors have built up their collections during quieter periods, jumping at the chance to secure older and rarer casks at unmissable prices.
However, this doesn’t mean that every cask on the market is a good deal or a worthy purchase. Distillery, age, cask type, naming rights and your personal goals all matter.
How We Can Help
That’s where we come in. Our team of whisky experts are keen to support you to make well informed decisions that take best advantage of the current climate.
Get in touch with us today to discuss your interest in cask whisky.
