The Scottish government has caused disruption in the whisky trade by releasing a consultation on potential restrictions to alcohol advertising and promotion in the country. The report, which states that “Scotland has a deep, longstanding and troubled relationship with alcohol”, hopes to “reduce the appeal of alcohol to young people” and “support a reduction in consumption of alcohol and subsequently improve their health and health prospects as adults”.

Whisky consultant and broker Blair Bowman disagrees with the report, saying: “They need to support these people on a fundamental level. It’s not just the alcohol – there’s poverty, unemployment, all of these things are interconnected that lead people to have this harmful level of drinking. But this approach with the alcohol advertising ban is going to apply to the whole population, which has adults who already have healthy and responsible, balanced lifestyles with drinking.”

Bowman says the research into this should be focused on charities such as the Scotch Whisky Action Fund: “That’s where there needs to be more attention. The products that are creating issues for people are unfortunately, the very cheap booze products.”

Effect on industry

However, there has been discussion among the drinks industry that the report fails to consider the implications to the trade in Scotland and the effect that this will have on local business and the economy. Bowman called the report “very extreme”, highlighting that it would be “so damaging to tourism”. He says: “The numbers from 2019 showed that over two million people visited distilleries in Scotland to spend £65m in the gift shops. Part of the proposal is that there would be no branded merchandise at all, not even a T-shirt or keyring.” This would have a knock-on effect to those who include the selling of merchandise as a big part of their business.

Electric Spirit Co is one company that would see the effects of this, as around 150 people participate in its Zwift cycling online, representing and using its own branding to do so, while it also sells real-world kit.

James Porteous, founder of Electric Spirits Co, says: “If the restrictions come in, then we wouldn’t be able to do any of that. A large number of our riders are based in Scotland, we couldn’t be associated with a sporting team, we couldn’t have the kit for sale to people who live in Scotland, it would basically wipe out the option of being able to do that. Which is kind of ironic, considering we’re talking about methods to make the population healthier, and it would prevent us from pushing one of the things we do that is very positive in terms of both physical and mental health.”

The consultation calls for people to submit their views and Bowman notes: “The consultation is really biased towards this kind of anti-alcohol position. The first answer you have to submit is ‘please indicate any direct or indirect links to the alcohol industry’, which is incredibly biased.”

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As a result, Bowman is calling for people to push back and complete the consultation, which closes 9 March, as he highlights the direct effect it would have on businesses. “We have some amazing world-class cultural and arts events in Scotland that people come from all around the world to participate in.

“They rely heavily on drinks brands, because they don’t get enough support already from arts funding. So if that was now banned, I just don’t think that these businesses would survive.”

Specifically on the on-trade side of things, Bowman adds: “If it goes to the extreme level that they’re suggesting, it could be that no bottles are allowed to be visible whatsoever, almost like tobacco. Bottles would have to be hidden behind the counters or behind screens, which just wouldn’t really work in reality.”

The importance of Scotch

One of the key points in the report that has sparked anger in the whisky trade is the statement: “Without branding and other marketing strategies, alcohol products in each beverage subsector are essentially variations of the same thing.” Bowman dismisses this, commenting: “Every whisky is distinct and unique, and that’s what makes us special. Scotch whisky wouldn’t be the global success story that it is if it was all just the same thing.”

According to the Scotch Whisky Association, more than 11,000 people are directly employed in the Scotch whisky industry, and there are over 42,000 jobs across the UK supported by the industry. Seven thousand of these in rural areas of Scotland, providing vital employment and investment to communities across the Highlands and Islands. The Scotch industry is a crucial part of the economy. “If these distilleries weren’t where they are, there wouldn’t be jobs in these places, people would have to leave and go to the city. We need to keep these jobs in these beautiful parts of the world and protect the local economies there,” Bowman adds.

Not just whisky

The consultation, if passed, will pose challenges for gin, cider and other beverage alcohol producers throughout the country. “I think, if a worst case scenario does go ahead, Scotch whisky will be okay, because it’s exported and the majority of the sales are from exports. But that will ruin the local businesses that don’t actually have exports, that really just sell locally or to tourists, they just won’t be viable,” Bowman continues.

With the consultation being just that, a means of gathering opinions, Porteous says: “It’s important to be balanced in terms of thinking that this isn’t fact that these things are going to happen. But it’s concerning as a small business that this is the language being used, in terms of the restrictions that are being discussed.

“From my perspective, specifically as a small spirits producer, I think if what’s being discussed comes to pass, it will make it very, very difficult for small brands like mine to be competitive in the market, because we rely so heavily on our ability to tell consumers about our products.”

For larger producers comes a more diverse stream of income. For example, it would pose a challenge for Electric Spirits, which primarily sells domestically, with some exports it would pose a challenge as Porteous notes: “We’d be able to advertise in countries that allow it, but then we wouldn’t be able to talk about it in our own country, which is a bit strange.”

Despite the government’s ideas to regulate and clamp down on alcohol marketing, Porteous adds: “Everyone in the drinks industry is very aware of our responsibilities as producers, and we take them very seriously. Even small producers, it’s not like the Wild West.”

The industry already faces restrictions in the way it talks about products and has regulations. “We also have organisations like the Portman Group, and they’re very much in everyone’s mind whenever we do any kind of promotional activity. So I think a large amount of the industry is very savvy already when it comes to the way that we talk about our products,” says Porteous.