​​Talent and Tannins: Capitalising on the Scotch Whisky Industry​

With over 148 whisky distilleries operating across Scotland, directly employing over 41,000 staff, the sector contributed £7.1bn in gross value added (GVA) to the UK economy in 2022, accompanied by £5.6bn from Scotch whisky exports in 2023. The Scotch whisky economic impact report underscored that Scotland accounts for 75% of the industry's total GVA, which amounts to £5.3 billion each year.

Growth outlook and challenges

The growth of whisky volume is promising and is expected to surpass that of beer and wine, yet distilleries are faced with mounting pressures caused by rising costs of energy, logistics, barley, warehousing, staffing, casks and bottling. 2024 has seen a reduction in global sales across the sector and it is too early to tell for how long the industry will face these headwinds. 

Distilleries in earlier stages encounter greater investment and financing challenges as there must be compelling reasons to support a new brand capable of commanding a premium price point. 

Distilleries can choose to increase production and invest more in warehousing without much immediate sales revenue, or to sell more quickly after a shorter maturation period, at the expense of building a premium brand.

Securing a supply of bourbon and sherry casks and investing in warehousing is crucial for large-scale sales, as the maturation process is what adds value to the whisky, yielding an aged product.

Talent

To address these challenges, distilleries need to invest in talent, particularly those with brand, commercial and international sales expertise. The real growth opportunities for premium whisky companies lies in international export markets, with an emphasis on countries such as the USA, France, Singapore, Taiwan, India, and China, which necessitates considerable investment in time, finances, and resources. 

Having strategic sustainability experience is key for senior leadership in this space due to the energy-intensive processes of mass whisky production, the need for local sourcing of ingredients, and conversion of waste into recyclable materials. Experience with automation, often from advanced operating environments, is also invaluable.

Odgers Berndtson supports all businesses across the whisky and spirits industry, from start-ups to established global brands, with a track record in identifying and developing leaders into Scotland with the skills needed to deliver transformational results and bolster organisational resilience through our leadership and assessment services.

Odgers Berndtson represents the Scottish market from offices in Edinburgh, Glasgow and Aberdeen, blending local insights and expertise with a worldwide network. 

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