Brexit and scotch prize

  • DaFin
    Topic creator
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    Joined: 23.05.2016Posts: 103CollectionDaFins CollectionRatings: 15

    How do you think Brexit will affect Scottish whisky outside GB?

    Right now, British Pound is going down, so maybe prizes in other currencies (Euro, Dollar) will be cheaper in the following weeks when stocks run out outside GB. But no trade agreements with UE will change for up to 2 years, and maybe Pound will stabilize itself by then...

    Well, quite uncertainty.

    What are your feelings about that?

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  • ben_2 Guest, Administrator ben_2 Joined: 01.07.2014Posts: 271Collectionbens CollectionRatings: 92
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    Hmmm. In the EU the prices will probably rise due to the tarifs and tolls on outside EU goods.

    However production costs (Grain, Wages for Malter, Distiller, Marketer, ..) may lower themselfs due to the reduction in Tax that the now independent UK doesnot have to send to Brussel anymore.

    All in all. I think the EU markets will see a price increase and the World a price drop.

    I work for whisky.com
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  • horst_s_2 Administrator horst_s_2 Joined: 01.07.2014Posts: 507Ratings: 661
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    If the conversion rate of the pound stays low, then the import of Scotch into the EC will be cheaper. Import duties are quite low for any kind of goods (2.5-3.5%). The conversion rate will overcompensate this.

    Kind regards, Horst Luening, Master Taster, Whisky.com
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  • Rowsdower70 Member Rowsdower70 Joined: 10.07.2016Posts: 20CollectionRowsdower70s CollectionRatings: 7
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    I have had this exact conversation with friends.

    We basically agreed that the price would lower somewhat due to the lower pound, but likely stabilize.

    Hopefully the future of the distilleries are quite safe.

    Michael Suitt
  • horst_s_2 Administrator horst_s_2 Joined: 01.07.2014Posts: 507Ratings: 661
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    The upcoming newsletter will cover this question in detail.

    Kind regards, Horst Luening, Master Taster, Whisky.com
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