The Department for Environment, Food and Rural Affairs (DEFRA)
has announced a consultation on strengthening the law in relation
to Scotch whisky's Geographical Indication protection.
The new laws will divide Scotch whisky into five types and five
regions, preventing products from using those regional names unless
they were wholly created in that region.
The changes will also control the way that whisky can be
advertised, prohibiting packaging that claims that a whisky is from
a place or particular distillery when it has not been entirely made
there.
The new laws will also restrict the movement of whisky, saying
that Scotch whisky cannot be exported in wooden casks or in any
form other than properly bottled and labelled.
"This consultation exercise will take us another step closer to
strengthening the UK legislation that the Scotch Whisky Association
have been telling us they need to help them protect Scotch whisky
in export markets," said Hilary Benn. "The proposals will define
tightly the descriptions applied to Scotch whisky."
The changes will be made through secondary legislation in spring
2008 after a consultation period later this year. Secretary of
State for Scotland Des Browne said that the move is to protect a
vital industry.
"Scotch Whisky exports are worth over £2bn to the Scottish
economy each year and the industry needs this proposed legislation
to help maintain that figure and defend its high-value product from
imitation in some overseas markets," said Browne.
Exports of Scotch Whisky reached almost £2.5 billion last year,
4% on up the preceding year and equivalent to one billion bottles
of exported whisky. The increase has led Forth Ports to tell the
Financial Times that it is planning 150,000 square metres of new
warehousing, some of which might be bonded to accommodate the
spirits trade.
Brand protection expert John MacKenzie of Pinsent Masons, the
law firm behind OUT-LAW.COM, said that the move significantly
increased the protection available to whisky distillers.
"This protection has a greater definition to it," he said. "The
two significant steps are the regional definitions and the fact
that you can't use the name of a distillery unless the whisky came
from it. Before, distilleries had to rely on their own trade marks
and this makes it easier for them. By definition easier protection
is stronger protection."
Many of the industry's problems are with whiskies sold abroad
which pretend to be Scotch whisky with no basis. MacKenzie said
that the new laws could also help address that problem.
"This is a recognition that it is an important industry, and
that it is given the highest level of protection here," he said.
"That will strengthen the hand of the Scotch Whisky Association
when it is arguing for more protection in other jurisdictions."
Scotch Whisky is currently defined in the Scotch Whisky Act of
1988 and the Scotch Whisky Order of 1990. It is also given the
status of protected geographical designation by two European Union
regulations, including the Spirit Drinks Regulation.
As well as five geographical regions, the new laws would create
five categories of whisky according to the ingredients used in the
distilling of a drink. These will be single malt, single grain,
blended, blended malt and blended grain whisky.
