StillDragon® Community Forum


Be part of our community & join our international next generation forum now!

In this Discussion

Maybe a Good Time to stock up on Scotch

Article in yesterday's Miami Herald. Business section, page 10B. "Spirit of Scotland" Look under Local and State.


  • Sorry but it seems the like is not working. They emailed it to me and worked fine but after reading it they want me to pay for a subscription. WTF. I'll try to get it posted somehow.

  • It's always a good time to stock up on scotch. :-bd

  • edited September 2014

    OK I did the best I could. Here is the article:


    Whiskey-makers’ worries mirror economic fears in a land that will soon decide whether to leave the United Kingdom

    ISLAY, Scotland — Carl Reavey plungedhis nose into the glass, inhaled the amber liquid’s scent, then sipped. Slowly.

    It’s said that Scotch tastes of the place where it is made, so Reavey’s Bruichladdich Black Art single malt would offer a touch of barley, a splash of the sea and a whiff of salt from the island of Islay, 140 miles west of Glasgow.

    That taste takes time — a long time — to produce, with top-rated Scotch aged for decades. And it means distilleries need longterm plans for investing and financing — all of which could be thrown into turmoil on a single day, Sept. 18, when Scotland votes on whether to leave the United Kingdom.

    Whiskey makers and many other businesses are worried about the risks involved in finding themselves overnight in a new country with, among other things, a new currency.

    “The uncertainty associated with independence, rather than independence itself, really, I think is the concern,” Reavey said.

    The most contentious issue so far has been what currency an independent Scotland would use. The British central government has ruled out Scotland’s sharing the pound, saying British taxpayers shouldn’t be forced to underwrite economic and fiscal policies over which they have no control. Pro-independence leader Alex Salmond has refused to offer a plan B, arguing that the stance of the anti-independence advocates is merely a scare tactic.

    For many companies, that’s not a bluff worth calling.

    If Scotland were to use a new currency, businesses would suddenly find themselves having to pay back loans they took in pounds with new money of uncertain value. The risk is a new currency would be weaker than the pound because it would be based on a Scottish economy that is much smaller than that of the rest of Britain, which includes England, Wales and Northern Ireland.

    The currency debate is especially important to Scotland’s financial-services industry, which accounts for 25 percent of the region’s economy, excluding oil and gas. Scotland-based groups such as the Royal Bank of Scotland and Standard Life, which rely on the stability provided by the pound, have warned about the risks of independence.

    Part of that would come from the fact that an independent Scotland may be forced to drop out of the European Union and apply separately for membership. The union of 28 countries guarantees the free movement of money and people — a precious asset for companies, particularly multinational corporations, as well as exporters.

    Nine out of 10 bottles of Scotch are sold overseas with a value of $7.1 billion a year. Being outside the E.U. would raise the prospect of new export duties to the E.U., the world’s largest trading bloc, with over 500 million people. Many distilleries import grain from E.U. countries to make whiskey, something that could become more expensive. Scotland would also have to take on the job of shielding the drink from unfair trading practices, protect its trademarks and safeguard an estimated 35,000 jobs

    The broad-ranging uncertainty is the primary weapon of anti-independence campaigners. The key question for voters — not just business owners — is whether Scots would be economically better off if they severed their ties with the rest of the United Kingdom. Salmond claims Scotland will grow rich from its North Sea oil reserves once it is free of meddling politicians in London who have wasted the country’s energy wealth. Salmond wants to funnel a portion of that revenue into a special fund like that of Norway, which has set aside the equivalent of $883 billion for future generations.

    “We’re not saying that the day after independence we’ll all wake up and find there are three taps in every house — whiskey, oil and water. We’re not saying that,” Salmond told The Associated Press. “We’re saying if we work together over a period of time, we can build a more prosperous and a more just society.”

    Alistair Darling, who leads the Better Together campaign, argues that prosperity is best guaranteed by Scotland’s remaining an integral part of the United Kingdom. Darling, who was British Treasury chief at the onset of the 2008 financial crisis, underscores that North Sea oil production is declining and future revenues are uncertain.

    One independent analysis suggests advocates of secession have overestimated Scotland’s energy windfall.

    About 84 percent of British oil reserves are in Scottish waters, meaning an independent Scotland would receive the lion’s share of future tax revenue from those assets. That translates to about $11.6 billion a year based on government forecasts, according to the London-based National Institute for Economic and Social Research. However, an independent state would lose roughly the same amount in transfer payments that the central U.K. government now sends to Scotland, the institute said in a February report.

    With North Sea oil production likely to decline beginning in 2018, Scotland might be left with a shortfall that would require it to find new sources of revenue to maintain public spending, according to the report.Whiskey differs from oil in that it is not only a source of money and jobs, but has become one of the most pervasive and recognizable symbols of Scotland internationally.

    The drink, which has been distilled in Scotland since at least 1494, was popularized globally by Hollywood after World War II. The promotion of singlemalt whiskey added another dimension to the market, whose sales have exploded over the past decade.

    “You’re buying a very carefully made and complex product,” said Charles MacLean, a leading expert on Scotland’s whiskey industry. “You’re buying the blood of one small nation.”

    The members of the Scotch Whisky Association are clear: They will work with whoever is in power. But who will that be?

    “If there’s one certainty of this process, [it’s] that Scotch whiskey will still be made in Scotland whatever happens,” said David Williams, the association’s spokesman.

  • There is a new single malt texas whiskey, called Rimfire. They use scotch style but replace the peat smoking with mesquite smoking. Gives an amazing flavor.

  • scotch style as in used barrels, or just smokiness? Have you tried anything from Corsair? Triple smoke is in your face smokey...

  • I believe its just smoking underneath the malted barley to stop its germination prior to fermentation.

  • Agreed, it may be time to add a few quality bottles of scotch to the treasure chest.

  • image

    222 x 800 - 24K

    StillDragon Europe - Your StillDragon® Distributor for Europe & the surrounding area

Sign In or Register to comment.