The global whisky category faces “a moment of correction” following a period in which prices were “pushed too high” amid inflated demand, according to the new managing director of The Whisky Exchange.
Speaking to The Grocer, Natalie Tennent said – amid reports of a worldwide glut of whisky/whiskey – brand owners had a responsibility to “hold back [on production] and clear the stock that is out there”.
“Pricing has been pushed too high, and in an era when there is less disposable income and the economy is difficult for the end consumer, we’ve tipped over the supply-demand ratio,” she said. “I don’t see this as a longer-term issue but I do see it as a corrective period where there is a responsibility, particularly for brand owners, to hold back and clear the stock that is out there.
“They are the only ones that can do something about that at their end, and then we’ve got to look at what we can do to make whisky more attractive to consumers.”
Scotch downturn
Tennent’s comments come as new figures revealed an historic downturn in demand for scotch and whiskey, as well as other spirits including cognac and tequila – has left brand owners sitting on vast quantities of unsold spirits.
The likes of Diageo, Pernod Ricard, Campari, Brown Forman and Rémy Cointreau are sitting on $22bn in ageing spirits, according to an analysis of their latest financial reports by Bernstein.
Meanwhile, scotch sales fell 3% in the first half of 2025, marking a third consecutive year of decline after decades of growth [IWSR].
The downturn has forced Diageo to scale back production at some of its malt distilleries to “balance capacity against current demand”. Other suppliers including Suntory and Pernod Ricard have also scaled back production at whiskey distilleries in the US and Ireland in the past 12 months.
Tariff impact
Tennent – who joined The Whisky Exchange last summer after 30 years at fine wine and spirits merchant Berry Bros & Rudd – said that while the retailer’s UK business remained “stable”, it was seeing a decline in its US customer base, driven by the impact of tariffs.
“We felt the impact of tariffs almost immediately,” she said. “All we can do is be reactive, rather than proactive, to the situation that we’re in. Particularly for the US customers we are looking at pricing to make sure that we are as competitive as we can be. But ultimately, we are slightly tied because of the situation that we’re in.”
Sales at Speciality Drinks, the limited company behind The Whisky Exchange’s physical retail stores and e-commerce and trade arms, fell 20.6% to £52.3m in the year to 30 June 2025. Losses before tax, meanwhile, widened from £2.4m to £6.3m.
“Consumer confidence is low at the moment,” said Tennent. “What we’re seeing is customers that are being more particular with what they buy and looking for value. They’re still buying, but they’re just being much more careful about and a bit more cautious.”
Christmas was also “a tough period” for The Whisky Exchange, with sales sliding 8% year on year, Tennent revealed.
“Our UK online business was flat,” she said. “We had fewer customers but an average order value that was higher. We saw the US decline, but a resurgence in our Asia sales coming through. So overall, we saw a decline, but with some nuggets of opportunity.”
Rising operating costs
In light of tough trading conditions, Tennent urged the government to rethink its hard-line stance on alcohol duty, and to consider wider relief for high street businesses hit by rises in operating costs including National Insurance.
“Pushing through duty rates – on top of existing high levels of duty – really hurts this industry,” she said. “But the other challenge we face is that this is a people industry. People are what make this industry special, but we’ve got the additional cost of National Insurance contributions, on top of duty, and on top of business rates – which I know there is help incoming on.
“We’ve got to make it more affordable for people outside of the industry, and more affordable for the trade to operate.”
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