Scotch whisky is enjoying unprecedented popularity around the world, especially in Asian countries. The annual
foreign market is more than £2 billion. Understandably, the distillers would like to hold on to as much of this
market as they can, but there are some who are none too happy about the current
market.
In India, sales of whisky have enjoyed a fifty percent increase in the last year and a Scotish Whisky Association
(SWA) representative said that "India is the industry's number one trade priority." That is where the trouble
starts. The SWA is protesting the 212-525% taxes and tariffs on their imports, which the Indian government and
distillers say is necessary to protect local products. Indian distillers, in turn, are protesting the fact
that the EU does not permit them to sell their own brew as "whisky" in Europe because it is molasses-based,
not cereal-based. The Indian distillers, like magnate Vijay Mallya, say that having to call their beverage an
"Indian spirit" hurts sales and the EU's labling requirements amount to protectionism, especially since they
are not asking to call their products "scotch," and are willing to use the label "Indian
whisky."
Efforts towards a settlement have failed thus far, but the EU is apparently conducting negotiations to see if a
resolution can be reached.