Client Update - December 2025

It’s no secret that 2025 has been a slow year, both here on the WhiskyInvestDirect platform and in the wider whisky industry. Share prices for all the major Scotch whisky producers are well down, and several have gone through changes in management, most notably Diageo who recently hired Dave Lewis as CEO to replace Debra Crew.

The cause will be recognisable to those familiar with the Scotch whisky industry. When demand falls, as it did in 2023 and 2024, supply takes a little while to catch up. Since Scotch whisky must be aged for at least 3 years, everything being bottled today was distilled in 2022 or earlier, meaning that production was at a level to cater to the demand projected at that time. Of course, when distillers realised that demand was lower than expected, they quickly took measures to reduce production of spirit, but that 3 year time lag means that these measures take time to be reflected in the market, and for the moment supply is outstripping demand.

We expect this to continue through most of 2026, and while the lower prices mean excellent buying opportunities for those with capital to spare, the liquidity in our markets remains low. However, we are in constant contact with our suppliers and key trade partners, and we do expect a return to previous levels of trading once the reduced production within the industry catches up with the reduction in global demand.

HMRC data for the year to September suggests that exports are roughly level with last year – Europe and Latin America have performed particularly well to balance a drop in shipments to Asia and North America. This is broadly consistent with trends across the industry – after a downturn in 2023 and 2024, Scotch whisky consumption is stabilizing. While there are certainly challenges to face in the global economy, current production levels are much better aligned with demand than they were two years ago, and our focus for the next year is on ensuring that once liquidity returns to the wider whisky markets, our clients are able to capitalize on it.

Thank you for your support over the previous year, and have a very Merry Christmas and a Happy New Year.