Recession Proof: Scotch Whisky Industry

Montgomery Scott considered Scotch a whiskey for real men

Recently, it was reported that the whisky industry in Scotland, has been unaffected by the economic downturn. This trend has been credited to an upsurge in demand seen in developing overseas markets, especially in India, China and Brazil, a report said. Scottish whisky exports increased by 23% last year, Sky News reported.

Whisky has become one of Britain's biggest exports, now worth over 4.5 billion pounds (Rs.370 billion) annually. Every second, 125 pounds (around Rs.10,300) pour into the British economy through revenue and jobs centred around whisky.

"Obviously their economies are doing very, very well. There's a growing middle class which obviously has growing disposable income," said Iain Weir, marketing director of the Gelngoyne Distillery, near Loch Lomond in Scotland.

"They are aspirational with regards to their consumption and I'm delighted to say whisky, and in particular single malt whisky, is very much on their shopping list. I think they very much appreciate the history and the provenance and authenticity that comes with Scotch whisky," he said.

Rosemary Gallagher, from the industry's governing body, the Scottish Whisky Association, says distillers were prepared.

"Companies have seen this demand coming and have planned ahead. Scottish whisky is a long term industry. So companies have invested one billion pounds in infrastructure in the last five years, expanding distilleries and opening new warehouses, so we're geared up for demand," she said.

Concerns about demand outweighing supply are prevalent, but not so as to dampen this resurgence created overseas for scotch whisky. From a purely economic perspective, demand for scotch whisky seems to be heading towards a certain in-elasticity among certain sections of society - a much celebrated way to recognize your aspirations and increase in income. Major industries like retail, auto etc have begun looking outwards of their sagging economies towards growing economies. 

There is, however, still an element of beauty attached to Scotch Whisky, one that hasn't been tarnished in any form yet and that which its true admirers appreciate. As Dewars Premium Scotch Whisky says, "something's are just worth doing".