Scotch whisky has become the first international product to receive geographical indicator (GI) status in Argentina. GI status gives products legal protection based on specific characteristics and qualities the hold, particularly where they’re made.
This means that, in order to be labelled as Scotch in Argentina, any product must meet strict criteria: the entire production process must take place in Scotland; made only using barley, water, and Yeats; distilled in Scotland using pot or continuous stills; matured in oak casks for a minimum of three years; and bottled at a minimum strength of 40% ABV.
Receiving GI status is considered essential in maintaining the quality and reputation of Scotch whisky internationally. Scotch already enjoys such protection in many markets around the world.
However, this protection is not universal and trade bodies such as the Scotch Whisky Association (SWA) are constantly encouraging the British government to make deals that would increase the number of countries Scotch has GI status in.
Last year, Scotch received GI status in Brazil, meaning that whisky made in Scotland now enjoys legal protection in two of the largest spirits markets in South America.
Speaking on the deal with Argentina, the UK minister for food security and rural affairs Daniel Ziechner noted how it’s part of a wider move by the UK government to promote Scotch abroad.
He said: “Argentina’s legal protection of Scotch whisky marks another triumph for this world-class British export. In just six months, we’ve driven a breakthrough trade agreement with India while securing legal protections for dozens of beloved British products across the globe – from the markets of São Paulo to the streets of Tokyo.
“This government won’t stop here. We’re unlocking doors for UK exporters worldwide, putting British products on more shelves and tables – delivering real economic growth as part of our Plan for Change.”
Scottish secretary Ian Murray echoed this sentiment: “It’s fantastic news that collaborative work between the UK government and the Scotch Whisky Association has convinced the Argentine authorities to give our national drink – and one of our biggest exports – the protection it deserves.
“Opening up new markets and expanding existing ones for our producers is key to growing the economy and the UK government’s Plan for Change. Scotland’s food and drink industry and our Brand Scotland campaign will play an important part in that.
“This is excellent news to all the whisky producers who put Scotland on the global stage with our world-famous spirit. Salud!”
The SWA celebrated the news, saying how “The legal protection in place for Scotch whisky in Argentina is a product of many years’ work by the SWA and our counterparts in the market.”
However, a statement from the group argued that the UK government could and should be doing more to support the Scotch whisky industry, both at home and internationally.
They added that “there remain significant economic challenges in other larger markets – not least here in the UK, and in our biggest market, the US.
“With a 14% increase in spirits duty in two years, excessive EPR fees for glass, and the industry excluded from the Industrial Strategy, Scotch whisky producers want to see the UK government take more concerted action to reduce the tax and regulatory burden in our home market.”
It’s certainly a trying time for Scotch producers; indeed, it’s been incredibly tough for whisky makers the world over. Rising costs are are eating into producer’s profits, profits that are already suffering as consumers are increasingly less inclined to spend in the same way they have been in recent years.
Further uncertainty comes from the ongoing noise regarding trade wars and tariff disputes between the US, the EU, and most other global markets.
While achieving GI status in one market won’t be the silver bullet to the Scotch whisky industry’s problems, it is something that should nevertheless be celebrated.
This legal protection will give consumers in Argentina more confidence in the Scotch whisky category, since what they are buying will be the authentic product. In turn, distillers will have more confidence in exporting their goods to - and hopefully see increased sales in - that country. Which will no doubt be a win for all concerned.
