Scotch Whisky in China

5th December 2011

First Minister Alex Salmond has toasted a Beijing business which has unveiled ambitious plans to create the country's largest Scotch whisky sales network - 300 stores in three years.

These retail outlets alone are buying over £20 million of whisky annually from Scotland.

During his visit to the Xiamen Spirit Empire store - accompanied by David Kilshaw of Scotland Food and Drink - the First Minister met Spirit Empire Chairman Ding Wei and Stephen Notman, recently recruited by Spirit Empire as a 'whisky ambassador' to work in Scotland representing Chinese sellers.

This development comes just a year after the Chinese Government announced it was giving new legal protection to Scotch Whisky with Geographical Indication of Origin (GI) status. The designation means that any product labelled as 'Scotch Whisky' in China must come from Scotland, ensuring Chinese consumers can be confident of enjoying a premium product.

China is a key emerging market for Scotch whisky with exports to China worth £57 million in the 12 months to June 2011.

Spirit Empire's immediate plans are to open a store in Shanghai and, with the support of the Scottish Development International, secure an office base in Scotland.

The company has already established co-operation relationships with well-known Scottish distilleries in the north east and across Scotland like Glenglassaugh, Benromach, Signatory, Bruichladdich, BenRiach and independent bottlers such as Gordon & Macphail and Wilson & Morgan.

Within the next three years the company has a plan to create China's largest Scotch whisky sales network.

The FM said:"Over the next week I'll be working with our partners here in China to promote Scottish industry and further the trade links that exemplify the already close relationship between our two countries. I am very pleased to visit the Spirit Empire and hear of their ambitious plans to create China's largest Scotch whisky sales network by selling what is our nation's most iconic product in 300 luxury shops across China. I am delighted that one of those already represented is from my own backyard - the Glenglassaugh distillery in Aberdeenshire.

"So great are Spirit Empire's plans here in China that they have recruited Stephen Notman as their whisky ambassador in Scotland. He will be reaching out to Scottish distilleries at home so that they are aware of the demand here in China and geared up to meet it. The company incorporated in China just this year and has already bought £4 million worth of single malt to sell to the Chinese market. The timing of this new venture is ideal - with the granting of Geographical Indication status a year ago helping ensure that increasing exports of quality Scotch whisky can be enjoyed by Chinese consumers. I wish Spirit Empire good fortune with their impressive growth plans and look forward to welcoming them to Scotland."

Scottish Development International chief executive Anne MacColl added:"The decision by a global company such as Xiamen Spirit Empire to further its trade with Scotland is testament to the reputation our country continues to have as the ideal place to do business. This is a huge win for Scotland - it's not only an invaluable exporting opportunity for Scottish whisky companies but it represents another major inward investment success. We look forward to working with Xiamen Spirit Empire to support the company in establishing an office base in Scotland."