DSICA
Column – Our Hotel – June 2007
“Record Scotch demand creates fakes”
By Gordon Broderick
Scotch whisky – (no ‘e’ in whisky) – is
whisky made in Scotland. In the English-speaking world it is often referred to
simply as ‘Scotch’. Scotch whisky is divided into a number of distinct
categories: Malt Scotch Whiskies, Single Malt Scotch Whiskies, Blended Scotch
Whiskies, and Single Grains Scotch Whiskies. To be called Scotch whisky the spirit
must conform to the standards of The Scotch Whisky Order 1990 (UK) and The Scotch
Whisky Act 1988 (UK). These laws requires that Scotch whisky must be distilled
at a Scottish distillery from water and malted barley, and in some cases other
cereals, be matured in Scotland in oak casks for not less than three years, must
not contain any added substance other than water and caramel colouring, and must
not be bottled at less than 40 per cent alcohol by volume. No whisky other than
Scotch whisky may be made in Scotland.
2006 was a record year for Scotch whisky
sales, with shipments of both malt and blended Scotch whisky increasing worldwide,
according to figures published by The Scotch Whisky Association (SWA).
Scotch
whisky sales rose by 4 per cent in value reaching nearly £2.5bn ($A6.25bn),
the highest ever value for shipments and beating a previous high of £2.4bn
($A6 bn) in 1997. In particular, there was encouraging growth for both bottled
malt exports (+7 per cent) and bottled blended Scotch (+4 per cent).
Scotch Whisky
export volumes were also at a new record high with shipments surpassing the equivalent
of one billion bottles, up 6 per cent on 2005 levels (to 1,051m bottles). The
previous record was achieved in 2001 (1,013m bottles). Bottled malt shipments
soared 23 per cent in volume (76m bottles), with bottled blended Scotch rising
4 per cent (762m bottles).
Richard Burrows, the SWA Chairman, commented: “Building
on a record year in 2006, the prospects for Scotch whisky are brighter than they
have been for many years. I’m greatly encouraged that distillers, large
and small, are investing in facilities in Scotland and taking advantage of opportunities
worldwide, with markets in Asia, North and South America offering strong potential
for growth.
Unfortunately, success can encourage counterfeits. Distillers are
therefore determined to ensure consumers continue to enjoy genuine Scotch Whisky
and are not deceived by counterfeit products trying to take advantage of Scotch
Whisky’s reputation for quality. Over the last two years, regrettably,
the SWA has discovered a large number of brands on sale in Australia described
as “Scotch Whisky” when the contents are not Scotch whisky. The SWA
has taken court action to stop the sale of these counterfeit products and has
obtained court orders against, or undertakings from, the companies and individuals
involved, along with payments of costs/damages.
It is important to remember that
Scotch whisky is whisky that has been wholly distilled and matured in Scotland
in accordance with UK law. Scotch whisky is also a protected geographical indication
under Australian law, and the description cannot be used in respect of spirits
that do not comply with these requirements.
The sale of fake “Scotch Whiskies” misleads
consumers as to the origin, nature and quality of the product and is an act of
unfair competition against genuine producers and is contrary to Commonwealth
and State consumer protection legislation. Above all, there is always the danger
that fake products may be harmful to the health of consumers.
Retailers should
be alert to the fact that, if offered “Scotch Whisky” at unrealistic
prices, it is probably ‘too good to be true’. In this regard, it
is worth bearing in mind that the excise duty alone on a 700mL bottle of spirits
at 40 alc/vol is currently approximately $18.00.
DSICA and SWA encourage anyone
who sees a suspicious product described as “Scotch Whisky”, or dressed
up to appear as Scotch Whisky, to contact the SWA or its solicitors on a confidential
basis at the earliest opportunity. The SWA will take forward appropriate legal
action to ensure that Australian consumers continue to enjoy genuine Scotch Whisky
and are protected from fake products. Any suspicious products should in the first
instance be reported to DSICA at info@dsica.com.au or phone (03) 9696 4466.
