Pic by mnem

Swirling winds, rugged landscapes and hillsides covered in heather are epitomised as the symbols of Scottishness by Scotch whisky companies, but this image is predicted to have a detrimental effect on the industry over the next five years.

The Dark Spirits report by market researchers Mintel has predicted that UK sales will drop 10% by 2016 because the current images of “heather and weather” is off-putting to younger drinkers. There’s a much greater sense of ceremony with Scotch, partly because they think it should be drunk neat compared to imported US whiskies which are more commonly mixed with the likes of cola or ginger ale.

Thanks to a spike in demand in emerging markets such as Brazil and Japan, exports have risen by 60% over the last 10 years, but in the UK sales have been falling.

There has been a general decline in alcohol sales in the UK, but the report suggests that Scotch is being hit particularly hard due to its image. It is often seen as a drink for dad, so despite some more up-to-date marketing campaigns from whisky companies, contemporary packaging, and attempts to target younger shoppers, its antiquated image could still see it lose more than £300m over the next five years.

Younger drinkers and women generally prefer drinks with a sweeter, more approachable flavour profile, but in 2010 a survey by ASDA found that 33% of the supermarket’s female shoppers were buying whisky, and that 60% of the women question had developed a taste for it through their husbands. More than half were also choosing to drink it neat, helping to partly dispel the male-dominated stereotype.

A senior drinks analyst for Mintel has said that major brands such as Glenfiddich and Talisker, which are owned by drinks giant Diageo, “have been guilty of focusing on ‘heather and weather’ imagery rather than more personable identity projected by the likes of bourbon import, Jack Daniel’s. Such a focus is far from emotionally engaging and feels somewhat tired.”

According to the report, overall UK whisky sales will fall from £2.55bn to £2.25bn by 2016 with Scotch bearing most of the brunt, while the sale of US imports such as bourbon are actually bucking the trend by showing a growth in sales.

There may be tough time ahead for the UK market, but a report last month by the SWA (Scotch Whisky Association) showed a 22% increase in exports for the first half of 2011, a surge which is a direct contribution to the Scottish government’s target of a 50% increase by 2017. This overall increase is the result of a burgeoning market in Asia which rose by 33% to £423m, and in Central and South America exports leapt nearly 50% to £214m. The world’s two biggest Scotch markets, the US and France, rose 14% to £268m, and 13% to £220m respectively.

Do you think the Scotch whisky industry needs a makeover? Go to our comments section below and tell us what you think would make it more appealing.

Image by: Images_of_money

After the announcement of poor economic growth last week, there is yet again more bad news for the UK economy. Many people have felt the financial strain of meeting the cost of living with their salary and it seems that this is having an effect over a large proportion of the population.

Research has reportedly shown that only one in four workers have received a pay rise so far this year, an amount that doesn’t look set to increase with pay rises generally given within the first six months of the year.

The Chartered Institute of Personnel and Development conducted a survey of 2000 employees which showed that 58% of employees rather than receiving a pay rise, had their pay frozen, it was also found that 1 in 20 people where unfortunate enough to have their pay cut.  Those lucky few who did receive a wage rise earlier this year saw an increase of on average only 3%.

With the current rate of inflation running at 4.2 % the situation looks bleak to say the least, as Charles Cotton of the CIPD said ‘Even those who are lucky enough to get an increase in their pay will find it below the current cost of living, compounding consumer belt-tightening,’

With the rising cost of living and rising household bills, it is no wonder people are finding it hard to maintain their standard of living. Some people are unable to save and are instead being forced to use their savings to pay essential bills.

But those living in Scotland shouldn’t be disheartened, with Scottish workers coming out on top for pay rises in the UK unlike the North East named as the “pay-freeze capital” of the UK.

Has your salary been frozen? How are you coping in the current economic climate?

The SMMT figures revealed that 131,495 vehicles were registered during October 2010, a drop of 22.2% on October 2009.  Diesel sales now account for 54.7% of the total new car market; last year the figure was 40%. While analysts predict that numbers will be down year-on-year for November and December, projections indicate that annual sales should be up 1.5% on 2009 by the end of the year.

The decline has been partly attributed to the end of a highly publicised government scrappage incentive scheme which ran  up March 2010 and helped to shore up car sales during the darkest months of recession in 2009. Some analysts, however, believe that the diminished figures point to the imminent possibility of a double dip recession amid increased financial uncertainty in which many people prefer to save their money for a rainy day rather than making major purchases they later come to regret.

Related articles

• New car sales fall (independent.co.uk)
• New car sales drop 22.2% in October (mirror.co.uk)

Under new Financial Services Authority (FSA) rules, financial firms who collect an excessive amount of complaints against them are to be named and shamed reports MoneySavingExpert news.

Over a six month period companies who receive 500 or more complaints will, under the rules, have to publish the numbers of complaints twice a year so consumers can see which firms draw the most ire.

Under the rules, companies must state complaints numbers in a prominent position on their website including:

• How many complaints they have opened and closed
• The percentage closed within eight weeks
• The percentage of complaints upheld

The number of complaints will also be available on the FSA website. FSA rules differs from those of the Financial Ombudsman Service rules in that FSA numbers will include all complaints and not just those that have gone to the Ombudsman.

Sheila Nicoll, FSA conduct policy director, says: “For the first time, people will be able to see how many complaints particular firms receive and how they handle them.”

All affected firms must publish figures by 31 August 2010, with the FSA following in September.