RUSSIA is ratcheting up output of “fake" Scotch as its giant spirits industry responds to Western sanctions, The Herald can reveal.
The nation’s vodka distilleries have dramatically increased production of whisky since Vladimir Putin launched his full-scale invasion of Ukraine a year ago.
And many of their new brands are designed to mimic Scottish, Irish and American imports hit by a partial international boycott sparked by the war.
Worried officials at the Scotch Whisky Association or SWA - the lobby which protects our national drink - last year made a record number of official objections about new Russian trademarks.
But, with relations between the Kremlin and the UK close to historic lows, it not clear what the SWA or individual brands can do to stop a wave of imitation products flooding Europe’s biggest country.
Russian whisky production rose a third in 2022 while imports halved, according to figures collated by the Moscow-based Centre for the Study of Federal and Regional Alcohol Markets.
But total sales remain steady - as locally made spirits replace foreign brands.
A few distilleries have developed full-cycle production, and make whisky from scratch using their own raw materials.
Some have been essentially bottling Scotch or other foreign blends using bulk imports. And others are mixing imported “distillates”, perhaps Scottish, with their own alcohol.
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But what worries the SWA is when the resulting liquor is “passed off” as being Scotch when it is not.
The Herald has found more than 30 brands of Russian-made whisky currently for sale online which either claims to be Scottish or has English-language labelling or marketing that might make a casual buyer think it was Scottish. Some may be legitimate, others not.
“As with other markets around the world, the SWA is investigating suspicious products and working to remove them from sale to protect the reputation and integrity of the Scotch Whisky category,” the SWA said in an official statement. “Of course, the legal and political situation in Russia does make that more challenging, but it is important that we are consistent in our approach to remove all fake Scotch Whisky’s from sale around the world.”
The Herald understands that lawyers acting for SWA lodged 40 objections to Russian whisky trademarks last year. That is a rise of a third on the year before and more than ever before. These objections could mature in to full-scale investigations if and when the new brands appear.
Russia started increasing output of whiskies in 2015, with the blessing of the Kremlin, as part of a wider campaign of import substitution after Mr Putin provoked sanctions by seizing the Ukrainian peninsula of Crimea.
There are Russian brands which make no attempt to conceal their local origin.
For example, a distillery in the southern republic of Dagestan, Viski Rossii, has been ramping up full-cycle production of its own malts and blends. There are also factories in Moscow and St Petersburg which have been bottling long-standing Scotch brands Bell’s and White Horse under licence from Diageo.
But Scottish sources question the legitimacy of other new products. “There has been a significant increase in issues for the SWA legal team to handle in Russia over the last 5 years,” said one insider. “Many of the suspicious products found on sale have labelling which is highly evocative of Scottish origin and misuse the description Scotch Whisky itself.”
Some of the bottles on supermarket shelves may be either partially or entirely made of bulk-bought blended Scotch, even if the brand is not familiar. Market watchers admit it is hard to tell.
But there are products on the Russian market which look distinctly inauthentic to Scottish eyes.
One distillery in Penza, south east of Moscow, has been churning out a brand called Mac Callister.
Its label features a bagpiper and it declares that it is a “carefully distilled”, “premium quality”, “blended aged Scotch distillate whiskey”.
The manufacturer, apparently unaware how to spell the Scottish product, adds that the beverage represents “the style of Scotland”.
It is understood that Mac Callister is on the radar of SWA investigators and lawyers.
The SWA has not commented on individual Russian brands it believes may be trying to falsely represent themselves as Scotch.
But the body routinely argues against brands or labels which feature Scottish or British names or devices. That would include words like “clan” or “glen” or “Highland” or images of bagpipes, tartan or kilts and other things associated with Scotland.
A number of new Russian whiskies which do not explicitly say they are Scotch have Scottish-sounding names, occasionally with unlikely spellings, and imagery.
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For example, a distillery in Stavropol, southern Russia, has been making a whisky called Glen McClaud, whose label features a lighthouse and a fishing boat.
The SWA has produced a fact-sheet explaining that Scotch must be “wholly produced and matured in Scotland”.
It adds: “With the exception of Single Malt Scotch Whisky, it may be bottled overseas by verified companies but the only permitted additions are water and, if necessary, plain caramel colouring to adjust the final colour of the spirit. The use of any other additive, such as sugar, flavouring or other alcohol is illegal and means that the product cannot be sold as Scotch Whisky.”
Some big international alcohol concerns, including those making Scotch, pulled out of Russia nearly a year ago.
However, the Kremlin has legalised what are called “parallel” or unauthorised imports. This allows major distributors - some of which also have whisky distilling capacity - to source supplies of key brands without the permission of their manufacturers.
Locally bottled or distilled brands are much cheaper than imported ones.
A half-litre bottle of Mac Callister, for example, retails for around £5. The same amount of Russian-bottled Bell’s goes for £13 while imported Red Label Johnnie Walker is £18.
Some Russians are unimpressed by misleading marketing and labelling.
“Overall, it looks like Russian whisky makers are trying to make quick money out of confused consumers who, after a glance, grab something from the shelf and who, horrified by the price of imports, decide to take a risk with a new brand,” wrote market watcher Stas Sokolov on a news site for Novosibirsk, Siberia’s biggest city. “Nevertheless, in the long run there is nothing to stop the emergence of domestic distillers who are capable of making whisky that is no worse than mass-produced Scottish or American varieties.”
He added: “That has happened in many other countries and some of those whiskies can cost as much (and sell as much) as the top Scotch brands.”
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