Scotch Whisky and Cachaça join forces for mutual promotion and protection

09 Dec 2016

The Scotch Whisky Association (SWA) - the trade body representing the Scotch Whisky industry - and the Brazilian Institute of Cachaça (IBRAC) - a private entity representing the Cachaça Brazilian spirit industry -  have signed a mutual cooperation agreement.

The agreement provides for collaboration on themes such as the prevention of misleading commercial practices, promotion of responsible consumption of alcoholic beverages, and mutual promotion and protection of the geographical indications (GIs) Scotch Whisky and Cachaça.

SWA director of global affairs Sarah Dickson was in Brasilia this week for the signing of the agreement at a ceremony held by the National Confederation of Industry (CNI). It follows a successful St Andrew's Day event at the UK Ambassador's residence in Brazil involving the UK special trade envoy to Brazil Mark Prisk MP and UK deputy ambassador Wasim Mir, with the SWA's head of Americas Siobhan Sellers and senior legal counsel Lindesay Low. The event was a celebration of Scotch Whisky and Cachaça and marked the start of their cooperation.

The associations said that the UK and Brazil both have a tradition of spirit-drink production and are important consumer markets.

Brazil is a priority market for Scotch Whisky representing the 8th largest destination market for exports of the spirit from Scotland in volume and the 17th largest in value. Exports of Scotch to Brazil in 2015 totaled £56 million or the equivalent of 46,529,789 bottles.

The UK is also a priority market for exports of Cachaça, a 'typically Brazilian spirit'. Of the total US$ 13 million of Cachaça exported in 2015, the UK accounted for 4.83% of that amount, making it the 9th biggest destination.

It is hoped that signing the mutual cooperation agreement will help increase market share both in Brazil and in the UK for these two spirits so closely associated with their countries of origin. 

Sarah Dickson, Scotch Whisky Association global affairs director, said: "Brazil is an important market for Scotch. We expect to see a return to growth next year following a period of recession in the country.

"Scotch Whisky is, of course, synonymous with Scotland, as Cachaça is with Brazil. We will work with the Brazilian Institute of Cachaça to ensure the best representation for both spirits across the UK and Brazil.

"While in Brazil to mark the signing of the agreement I was also pleased to meet Liam Fox, Secretary of State for international trade, who was in Brasilia for talks on increasing bilateral trade between the UK and Brazil. He has always been a strong supporter of the Scotch Whisky industry."

Media Enquiries - Scotch Whisky Association (SWA)
Rosemary Gallagher (SWA head of communications)
Tel.:  00 44 131 222 9230 / 00 44 7432 605385