James Fry and Joanne Flack investigate whether new proposals to tighten what is, and is not, Scotch whisky could help to sink the international counterfeiters
For over 50 years, the Scotch whisky industry has been fighting to protect the lucrative Scotch whisky brand against counterfeiters who have sought to associate their products with the name which has become synonymous with quality.
Since the earliest documented record of distilling in Scotland in 1494, the brand has built a strong global reputation for quality which could be easily undermined by the circulation of substandard counterfeit goods.
Strong protection allows exclusive products to be sold at a premium. This is reflected in the value of the Scotch whisky brand, with the value of Scotch whisky exports topping £2.5bn in 2006. With over 70% of the cost of a bottle of Scotch whisky being attributable to taxation, producers are not the only interested parties. VAT and excise duty is worth millions annually to the UK Exchequer, and is set to continue increasing.
The international growth
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