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2011 November November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pirs_20112.indd 1 10/27/2011 11:19:07 AM Association: an active section of ERSA ,QWURGXFWLRQ and RSAI building bridges to Eastern and Middle Europe) have unselfishly :HOFRPHIURPWKH3UHVLGHQW prepared for the successful organization <RVKLUR+LJDQR of the Congress. Our Romanian friends are very keen to welcome all of you and your families to Timisoara. Timisoara is Welcome to the a most beautiful city in every sense and latest newsletter. people living there have progressive and On behalf of the enterprising spirits. You will enjoy not Regional Science only the academic activities scheduled Association for the Meeting but also the historical International (RSAI), and cultural exchange with friends from I would like to invite all over the world. you all to attend the The next world Congress is a good 9th World Congress opportunity for us to understand and in Timisoara, realize that we are all part of RSAI in Romania next May. every sense. I cordially invite your active As you know, RSAI has three super- participation in the Congress. regions, the European Regional Science I am looking forward to seeing you soon Association (ERSA), Pacific Regional in Timisoara. Science Conference Organization (PRSCO), and RSAmericas (North Yoshiro Higano, President of RSAI American Regional Science Council and Latin American Sections). Each of these has different histories and backgrounds :HOFRPHIURPWKH(GLWRUV but all have encouraged the mutual exchange of ideas under the umbrella Graham Clarke and organization of RSAI. Each conference Eveline van Leeuwen has been organized separately by each super-region but the World Congress, initiated in 1980, is truly an RSAI international meeting in the sense that it has been set up as a truly global conference, normally in regions of the world where we wish to develop regional science. RSAI still needs to be active in countries where official RSAI Sections have not yet been established. This is also one of the major reasons the RSAI Council Board is composed of delegates The editors are pleased to welcome you from the three super-regions. The RSAI to this newsletter exploring the issue of Council aims to promote regional the importance of the drinks industry in science not only from local/domestic/ regional economies – no we do not superregional perspectives but also mean the consumption of alcohol at our taking into account a truly international meetings (which might indeed inject and global view of our community. much needed revenues into local Since 2008 our friends, led by Prof. economies) – but the importance of local Daniela Constantin (President of the specialized production of (alcoholic) Romanian Regional Science beverages. To this end we visit pirs_20112.indd 2 10/27/2011 11:19:07 AM Scotland, Greece and Japan. We also truly massive industry with a genuine introduce another Fellow (T.John Kim) worldwide market reach. With sales in and the important regional research excess of £3.5bn into more than 200 centre at the University of Barcelona in countries, different stages of the Spain (fantastic hosts at the recent production process located across the ERSA conference). Furthermore, there is country, and as the basis for an more news and information on the World unrivalled drinks cluster, this is a sector conference, also introduced by our worthy of detailed analysis. A decade President in his welcome. Once again ago we were commissioned jointly by we hope you enjoy the newsletter. the trades unions and the trade body for Eveline and Graham the employers, the Scotch Whisky Association, to undertake a study of the current and future prospects for the industry. This article is based upon that research of Roper et al 2006, which was both well received and generated 5HJLRQDOVSHFLDOL]DWLRQDQG invitations to submit evidence to the WKHGULQNVLQGXVWU\ 7KH lower chamber of the UK Parliament, the House of Commons, and to present at 6FRWFK:KLVN\,QGXVWU\ conferences and to publish academic papers (see references below). Mike Danson and Geoff Whittam, The essential spirit of Scotland is University of the West of Scotland captured by Scotch Whisky: malt whisky (the traditional form of this uisge beatha Scots Gaelic for the “water of life”) is distilled in the Highlands and Islands, matured and bottled in the Lowlands, and consumed throughout the world. Scotch Whisky is the mainstay of many communities throughout Scotland. Fragile rural areas in the north and west depend on a few jobs in scattered production sites and significant employment is provided in the bottling Scotland is blessed with a number of plants of the central belt. Most (about iconic cultural symbols which are 90%) Scotch Whisky consumed now has recognisable across the globe: tartan, a grain whisky base with a mixture of kilts, and, of course, Scotch Whisky malts added, and these grain whiskies being but the leading examples. They are produced in the central belt of are at the core of promotion strategies, Scotland. Work is provided at several whether it be in the marketing stages of the production process: campaigns of ‘Scotland the Brand’ distillation, maturation, blending, bottling, or of the Scottish tourist authorities packaging, distributing and marketing. (VisitScotland) (Burnett and Danson, Growing from little more than a cottage 2004). There have been some criticisms industry at the end of the C19th century, in these being used as a key component Scotch Whisky is now a sector in attracting inward investment in dominated by massive multinational economic development strategies. But, corporations producing integrated in the case of Scotch Whisky in operations, which link plants and particular, behind the imagery there is a activities throughout the whole of pirs_20112.indd 3 10/27/2011 11:19:07 AM Scotland. At the same time, much substantial capital to fund maturing smaller companies, some still private, stocks and stability in the market to be continue to be active in the industry. able to realize past production decisions. Bowmore Distillery, Islay A dram of malt whisky The industry impacts on many communities and suppliers across Whisky can be and is made elsewhere: Scotland through its linkages particularly Japan, North America, the Republic of to agriculture, the utilities, packaging, Ireland and Northern Ireland. Whilst distribution and tourism, but also to Scotch Whisky outsells these and is many other sectors. dominant internationally, it is constantly After early resistance to Scotch malt challenged by these alternative whiskies, whisky, the use of Scotch grain whisky as well as by significant trends in to create more palatable blended drinks fashionable drinks. Younger more has led to the establishment of a major affluent consumers in the UK have been sector. In past years, helped and encouraged to start with lighter white occasionally hindered by such diverse spirits, ready mixed drinks, designer factors as problems in the vine crop, the beers and wine. period of prohibition in the USA, the rise That many of the larger producers in the and fall of the British Empire, the Scotch Scotch Whisky industry are in these Whisky industry has evolved into a markets also, raises further concerns for mature product and sector. the sector. Conglomerates involved in More than any other consumer product, several of these rival markets have the Scotch Whisky requires the long term potential to meet threats from such investment of capital over long periods competitors by shifting production (in order to secure the quality for which between spirits. Significantly, however, it is famous, and to meet the regulatory the larger enterprises in the industry are requirement which underpins it). While producers of a range of white spirits it is important to recognise that the (e.g. gin, vodka, Bacardi, etc.), and industry does not wish to remove the many of these activities are being maturation requirement, at the same located progressively in Scotland. time it does mean, of course, that capital Much of this movement is a recent is committed over long periods of time, phenomenon, but has been a growing imposing peculiar economic costs on the feature of the industry in Scotland and sector. By law, and the industry’s own beyond. The definition of the Scotch regulation, Scotch Whisky must wait Whisky industry consists of the after the initial distilling to mature, a key manufacture of distilled, potable, characteristic is the need for both alcoholic beverages. These activities are pirs_20112.indd 4 10/27/2011 11:19:08 AM covered by class 15.91 of the Standard threat of duopoly pricing and output Industrial Classification of economic decision-making, with production activities (SIC(92)). This class includes collectively reduced to maximise profits. the production
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