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Whisky exports from the UK returned to progress within the first 9 months of 2021, whereas gin struggled to get better its gross sales.
Figures from commerce physique the Meals and Drink Federation (FDF) discovered that UK exports of foods and drinks fell by 15.9% to £2.7 billion (US$3.5bn) within the nine-month interval, in comparison with 2019. In 2020, UK exports of foods and drinks dropped by 4.1%.
The FDF mentioned the decline was primarily as a consequence of a droop in gross sales to the European Union, which fell by 23.7% to £2.4bn (US$3.2bn) since 2019, due to commerce obstacles and the impression of Covid-19.
Exports to core markets have reported giant declines since 2019, together with Germany (down 44.5%), Italy (down 43.3%) and Spain (down 50.6%). UK exports to Eire – the foods and drinks business’s largest market – have fallen by greater than 1 / 4 since 2019, equal to a lack of practically £750,000 (US$993,650).
Non-EU international locations reported a extra constructive efficiency, with exports up by 11.1% over the nine-month interval, in comparison with 2020. Non-EU progress was pushed by double-digit boosts in China, Taiwan and the United Arab Emirates, and a 5.4% improve in Singapore.
Whisky bounces again
Regardless of the declines, exports of whisky began to return to progress, with a 21% improve to £3.3bn (US$4.3bn) in Q3 2021. However the class is but to return to 2019 ranges when it reached £3.7 billion (US$4.9bn).
Gin, the UK’s sixth largest foods and drinks export, reported a double-digit drop within the first 9 months of 2021, falling by 10.4% 12 months over 12 months. Between 2019 and 2021, gin recorded a 24.8% drop from £513.7m (US$680.5m) to £386.3m (US$511.8m).
Apart from whisky, salmon and smooth drinks had been the one classes among the many prime 10 foods and drinks export merchandise to submit progress. Salmon rose by 20.7% and smooth drinks elevated by 11.5% over the nine-month interval.
Within the Gulf Cooperation Council, a union of six Gulf international locations, gross sales of whisky improved over the previous 12 months, rising by 39.3% to £60.1m (US$79.6m). Nonetheless, exports are nonetheless down 29.6% on pre-pandemic ranges from 2019.
Within the United Arab Emirates, whisky elevated by 47.3% to £55.5m (US$73.5m) in 2021. But, exports remained down by 19.5% on 2019.
Whisky exports to the Affiliation of South East Asian Nations (ASEAN), an financial union of 10 South East Asian member states, additionally recorded double-digit progress. Whisky rose by 13.2% to £217.6m (US$288.3m) in 2021 however was down by 21.8% on 2019 ranges. Whisky exports to the Philippines declined by 11.3% in 2021 to £3.9m (US$5.1m).
The FDF famous that the UK is because of introduce its delayed import controls on merchandise arriving from the EU in 2022. The group warned it will additional have an effect on the fee and availability of foods and drinks provides from the EU, together with key substances and uncooked supplies required by UK companies.
Dominic Goudie, head of worldwide commerce for FDF, mentioned: “This can be very disappointing to see how badly our commerce with the EU has been affected, with our smallest exporters hardest hit. It’s important that the federal government works constructively with the EU to enhance the implementation of the Commerce and Cooperation Settlement to make sure that it really works for small companies, in any other case this downturn will likely be right here to remain.
“The UK authorities’s current announcement of plans to take ahead the FDF’s proposals to arrange a brand new Meals and Drink Export Council, and put in place new in-market assist, are welcome. It is important that the UK authorities and devolved nations proceed to work with business to place in place a brand new mannequin of partnership to assist foods and drinks exporters.”
Gross sales of gin within the UK off-trade reported a stagnant performance within the 12 months to September 2021, in line with a brand new report.
Karen Betts, the CEO of the Scotch Whisky Affiliation (SWA), will depart the commerce group to become the chief executive of the FDF on the finish of 2021.
Mark Kent, former British ambassador to Argentina, will lead the SWA as CEO in January 2022.