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Analysis and Evaluation of Scotch Whisky Industry - Coursework Example
Author : bertamayert
Pages 9 (2259 words)
Analysis and Evaluation of Scotch whisky Industry By Name of the Class Name of the Instructor Institution Introduction Scotch whisky is the leading product exported. The major export markets for the Scotch whisky are United States, Spain, Singapore and South Korea…
Production of scotch whiskey has adversely been affected by declining revenues and slow growth for the past 5 years. This is attributable to declining per capita consumption of spirits, health and societal concerns about the misuse of alcohol and tough competition from its close substitutes. One of the major drivers of growth was the exports before the onset of the financial crisis, which slowed down the markets in US and Europe. Effects of global restructuring and cost-cutting measures on the Scotch whisky industry Diageo, as part of its restructuring plan reported that it would close down its Port Dundas grain whisky distillery and the Kilmarnock bottling plant. The latter is where the world’s most popular Scotch whisky, Johnnie Walker, had been bottled. This would cost about 710 jobs. Diageo also intend to expand its Leven plant and create about 400 jobs. A protest ensued from the stakeholders but the decision was ultimately undertaken by Diageo. Another whisky producer Whyte & Mackay cut 85 jobs in Scotland. These signal decisions by producers to shift bottling overseas due to increased costs and the emerging economies, which have become important markets. Shifting production processes offshore will have an impact on production of other spirits in Scotland, which rely on the economies of scale by large-scale whisky distilling and bottling to remain operational. ...
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