Scottish whisky market slides into supply glut amid falling sales and US tariffs
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Scottish whisky market slides into supply glut amid falling sales and US tariffs
"The Scottish whisky market has slipped into a supply glut as US tariffs and falling demand weigh on the country's distilleries. Global scotch sales fell 3% in the first half of 2025, marking the third consecutive year of decline after decades of growth, according to the alcohol data provider IWSR. The slowdown comes as distilleries grapple with uncertainty around Donald Trump's trade tariffs, as well as declining rates of alcohol consumption."
"The company has scaled back production at some distilleries from seven days a week to five, with operations paused at Teaninich Distillery in the Scottish Highlands. It has also halted production at its Roseisle Maltings site in north-east Scotland until at least June 2026, with future production under review. Diageo's proposed redevelopment of its Talisker distillery on the Isle of Skye is also uncertain."
The Scottish whisky sector has entered a supply glut as US tariffs and falling consumption reduce demand. Global scotch sales fell 3% in the first half of 2025, the third consecutive year of decline, while US sales dropped 6% in the first nine months of 2025. UK whisky imports into the US remain subject to a 10% tariff despite a trade deal, with the Scotch Whisky Association estimating costs of 4m a week and almost 20m a month in lost sales and job impacts. Major producers have scaled back or paused production and delayed investment plans to rebalance capacity.
Read at www.theguardian.com
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