Scotch whisky has been given special protected status in Brazil for the first time. This is the first time a product has gained such a status in the country since 2019 and now Scotch sits alongside the likes of cognac and champagne by having legal protection in Brazil.
In short, Geographical Indicator (GI) status is an intellectual property right used for products that have a quality of characteristic attributable to a specific place of origin. It’s what legally separates champagne from sparkling wine made anywhere else in the world, for example. Granting GI status to a product is widely regarded as the best way to protect the authenticity of these produce in various markets around the world.
Brazil’s legal system now recognising Scotch whisky in such a way will protect it from counterfeit goods and increase consumer confidence. In turn, this will also give producers greater confidence in exporting to the country, which will be a big boost for the whisky sector.
As South America’s largest economy, Brazil is already a significant market for Scotch whisky, with approximately £90 million worth of whisky being exported in 2023. It was also the eighth largest market by volume, with 43 million bottles entering the country.
Industry experts have suggested that Brazil is a top five global growth market for alcohol over the next five years. This could mean that whisky exports to Brazil could be worth around an additional £25 million to the industry over that period.
While visiting Glengoyne Distillery, Trade Secretary Jonathan Reynolds reinforced the importance of exports to business and suggested that the news of the GI status shows the UK government’s commitment to the whisky industry.
He said: “Scotch Whisky is one of Scotland’s finest products and is in high demand across the globe. This Government is committed to maximising Scotland’s potential, and today’s announcement gives Scottish distillers the confidence they need to export to one of the world’s largest economies without having to compete with fake knock-offs and pale imitations.
“Businesses who export more are better off, and removing trade barriers like this will unlock more global markets and drive economic growth across the UK.”
Indeed, the importance of Scotch whisky to the UK economy can’t be overstated. In 2023, Scotch exports were worth £5.6 billion and accounted for almost a quarter (22%) of all UK food and drink exports.
Removing obstacles to exports has long been a goal of the Scotch Whisky Association, the trade body representing the whisky industry.
SWA chief executive Mark Kent welcomed the news of the agreement, saying that it “is fundamental to ensure that millions of Brazilians can have confidence in the quality and history of what they’re buying…Achieving this status is ‘Brand Scotland’ in action. Removing trade barriers and securing legal protections for Scotch Whisky is critical to the industry’s success, helping to increase exports and in turn creating more jobs, investment and prosperity in Scotland and across the UK.”
Earlier this year, Scotch whisky was also granted protected status in the Philippines, becoming one of only four products at the time to earn this protection.
Being granted legal protection in both Brazil and the Philippines - among a number of other territories worldwide - is a demonstration of Scotch whisky’s global reputation as one of the finest spirits in the world.