THE WHISKY TRADE

Evening Star, Issue 22453, 25 September 1936, Page 8

THE WHISKY TRADE

RATIONING MAY BE INTRODUCED SHORTAGE IN SUPPLY AT HOME The shortage in the supplies of Scotch whisky at Home is likely to lead to interesting developments _ in the trade, according to a letter received by Mr A. A. Paape from a large exporter at Home, andi the position is viewed as sufficiently grave, ho says, as to make some exporters consider introducing a system of rationing. This exporter writes that with regard to the purchase of Scotch whisky there hae been a decided increase at Home on the previous level of prices, the increase being many shillings a gallon. “It is extremely difficult, he states, “to see what will be the eventual outcome of the present movement, but the rate of increase in whisky prices in the last 18 months has been decidedly phenomenal, and l grains have shown the greatest increase, so that to-day they command several aniilinga more per gallon than good-class malts—a most anomalous position and one that is. so far as is known, entirely new to the Scotch whisky trade.” The exporter explains that the reason is, of course, that grains are in relatively shorter supply than malts, although it is now very _ obvious that all types of Scotch whisky are in short supply and will be still more so within the next two years. It is a fact already known in New Zealand that a system of . rationing has been, or will shortly "he, imposed. “ After a,period when Scotch whisky sales were, extremely difficult at even unremunerative prices, this is certainly a surprising statement to have to make,” the exporter’s letter proceeds, “ but it is due to two principal causes:—(l) A curtailment of production from the year 1930, and particularly in 1930, 1931, 1932, which whiskies, of course, are now coming into consumption; and (2) coincident with the above, some improvement in most of the world’s markets, but particularly with the re-entry of America.” The result is that the small quantity of whisky made in those years not only has to cover this improved demand, but it also has to allow for a reserve for the older whiskies that will not come into consumption until two or three years hence. It might be said that before the years mentioned there was a visible surplus and that the reentry of America is not entirely a new market because many shipments were ' made to what was described as “ other countries ” during the prohibition period. By the end of this year it may be expected that the American market alone will have taken 5,000,000 gallons in the last 12 months. Reliable judges, who have surveyed the market, consider that in two years this figure will have risen to 10,000,000 gallpns per annum. The consequence is that small blenders and shippers who were accustomed to rely on the market for their supplies, purchasing single whiskies as they required them and Mending them together from time to time, are now unable to cover their requirements in a great, many cases, or alternatively are forced to pay prices that at present can show them little or no profit at all. The recognised exporters who have regularly bondedi whiskies throughout the period in question arc, of course, more 'favourably placed and are inclined “ to play the market ” on this account, since if others are “ squeezed out ” it naturally leaves the remainder a stronger market, _ but it is very doubtful how far this theory can proceed.