German whiskey producers feel the impact of Brexit

Germany is well known for its beer and sausage, but most people haven't heard much about German whiskey.

The country is, however, home to more than a hundred distilleries, mainly for small-scale production.

Now, with EU tariffs on American whiskey as a result of trade tensions, and the Scotch industry facing concerns over Brexit, German whiskey producers may have an opportunity.

There has been a growing interest in what we call world whiskey, said Bastian Heuser, co-founder of Spreewood Distillers, about an hour's drive from Berlin, which implies to whiskey from other regions besides the classic or typical whiskey regions, Scotland, Ireland, USA and Japan.

Heuser thinks German customers may be intrigued by his Stork Club rye whiskey if prices rise on brands like Jack Daniels and Johnnie Walker.

Then people will probably say that's cool, I can have a small, manufactured craft product for the same price as a big industrially produced product, he said.

The UK and the U.S. are the world's two largest whiskey producers. Scotch exports alone were worth around six billion U.S. dollars last year with the EU as the top market.

Worried about possible disruptions, the Scotch Whisky Association has demanded that UK leaders do everything possible to avoid a no-deal Brexit. However, unlike American whiskey, WTO rules protect Scotch whiskey from tariffs, so the net impact of Brexit is unclear.

If you would have no tariffs into the EU, and you would also see an exchange rate effect which means that the British pound would become more attractive because it devalues, said Michael Wohlgemuth, director of Open Europe Berlin. Actually exports into the EU could increase, he added.

German whiskey has a long way to go to match the popularity of Scotch or American whiskey. The German whiskey distillers association says it accounts for less than half a percent of worldwide production.

At Spreewood, Heuser is busy getting ready for his annual party where whiskey lovers and locals can sample the whiskey selection, as well as gin and other spirits.

He said he doesn't see much positive about Brexit, even if there is a short term boost since it might complicate his plans to export to the UK. For now, he's mainly concerned with spreading the message about his whiskey – one glass at a time.

(CGTN)