Growing numbers of Scottish spirits producers are showing signs of financial strain as weakening export demand, rising costs and trade barriers squeeze margins across the sector.
Research by restructuring specialist BTG Begbies Traynor found that 69 Scottish distillers were facing “significant” or “critical” financial distress at the end of the year, up from 49 in the previous quarter.
According to the Scotch Whisky Association, Scotland is home to more than 150 whisky distilleries, alongside more than 90 producing gin and a smaller number making vodka, rum and liqueurs.
Thomas McKay, managing partner of BTG in Scotland, said producers were facing a “perfect storm of lowering demand, rising production costs and increased tariffs in key markets”.
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