As mentioned earlier, only 151 distilleries are currently operating in Scotland. Some are quite large, such as Glenlivet, which produces 21 million liters of pure alcohol (100% ABV, which doesn’t exist in the real world but simplifies calculations). Others are much smaller, like Tiree Distillery, which aims to reach 2,000 liters this year. Looking at the timeline of distillery openings, you’ll see that 49 new distilleries have been established since 2011. That sounds like a lot—and you might think it would significantly boost market supply. However, our latest research shows that these 49 new distilleries contribute a combined production increase of 34 million liters, which accounts for only 3.8% of total Scotch production. This barely covers the category’s growth compared to pre-COVID 2019 levels.
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Consider the modest production volumes of new Scotch whisky distilleries emerging in the last decade. These additions aren’t substantial enough to slow down market growth. But could increased production from established distilleries have that effect?
As mentioned earlier, only 151 distilleries are currently operating in Scotland. Some are quite large, such as Glenlivet, which produces 21 million liters of pure alcohol (100% ABV, which doesn’t exist in the real world but simplifies calculations). Others are much smaller, like Tiree Distillery, which aims to reach 2,000 liters this year. Looking at the timeline of distillery openings, you’ll see that 49 new distilleries have been established since 2011. That sounds like a lot—and you might think it would significantly boost market supply. However, our latest research shows that these 49 new distilleries contribute a combined production increase of 34 million liters, which accounts for only 3.8% of total Scotch production. This barely covers the category’s growth compared to pre-COVID 2019 levels.
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Some really interesting perspectives in this article from Mark Littler, considering the question of how new distilleries can continue to stand out in such a competitive landscape. With malt distillery numbers increasing by over 40% in the last 10 years, new entrants no longer benefit from having the spotlight purely shining on them, with it now feeling like every few months brings a new distillery announcement, first cask being laid down, or inaugural release. Martin Purvis & Duncan McFadzean's Spirits Business newsletter last week emphasised the challenges around the "0% income, 100% investment/overheads" phase of a new distillery and the need to ensure a robust revenue strategy in order to build a viable business, which will survive through to the point that cased goods sales reach a volume to make the business sustainable. Those financial challenges are hard enough, but combine them with the increasingly competitive landscape for new distilleries, and it becomes clear that owners face a real battle. Fortunately, demand & enthusiasm continues to be strong around new releases, but new distilleries & products must be built on a strong backstory, clear core values, a striking visual identity, and alignment with the expectations of their target market (particularly around ESG) in order to flourish. If nothing else, this has given me the incentive to support some of my favourite new kids on the block when selecting my Friday dram(s)!
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Brown-Forman has taken the decision to consolidate production at two of its scotch whisky distilleries, although neither is set to close. #alcohol #spirits #liquor #whisky #scotchwhisky Read more: https://lnkd.in/ePF7aaU7
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Recent social media posts indicate Glenglassaugh distillery is preparing for a temporary closure. While this development warrants attention, it's worth noting that production pauses are a standard feature of whisky manufacturing, though current market conditions may extend this particular pause. We've contacted Brown-Forman and Glenglassaugh for official confirmation and further details about the situation. Context is crucial here - this appears markedly different from the permanent closures that characterised the 1980s whisky loch. Rather, it seems to represent a tactical response to current market dynamics, potentially signalling a trend toward more nuanced production management across the industry. The distillery's Sandend expression has been a notable success in recent years, suggesting this is likely a strategic pause rather than a broader indication of the brand's future. I'll provide updates as more information becomes available. https://lnkd.in/eMmjMT-C
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A quick update from Brown-Forman on Glenglassaugh Distillery operations - with some interesting historical context: Following social media speculation, Brown-Forman has confirmed Glenglassaugh will operate under a shared production model with BenRiach. Here's what's interesting: 👍 Historically, Scottish distilleries would have 'silent seasons' in summer when barley was growing and water was scarce - a practical approach that some still maintain today 👍 Brown-Forman already successfully shares resources across their Scottish operations - Master Blender Rachel Barrie oversees whisky creation across their entire single malt portfolio 👍 This new arrangement simply extends their existing collaborative approach to production, with Glenglassaugh and BenRiach alternating active periods 👍 A small number of redundancies will result, with affected staff receiving support through the transition Both distilleries remain key to Brown-Forman's long-term whisky making strategy. https://lnkd.in/edD973tC
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𝐄𝐧𝐠𝐥𝐚𝐧𝐝 𝐛𝐨𝐨𝐬𝐭𝐬 𝐔𝐊 𝐝𝐢𝐬𝐭𝐢𝐥𝐥𝐞𝐫𝐲 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 😍 The number of registered distilleries in the UK climbed by 8.7% last year, driven by new English producers. The UK welcomed 54 new distilleries in 2023 to reach a total of 387 (up from 356 distilleries in 2022), according to national accountancy group UHY Hacker Young.The number of distilleries in England soared by a fifth to 48 sites registered in 2023, up from 40 in 2022.Scotland and Northern Ireland each saw an increase of three new distilleries last year, while Wales’ distillery numbers remained the same.Among some of the new UK producers were Edinburgh-based The Port of Leith Distillery , which opened its new £12 million (US$14.5m) distillery last year. Meanwhile, Ad Gefrin launched a £14m (US$17.5m) whisky distillery and museum in Northumberland, England. Titanic Distillers also become the first working whiskey distillery in Belfast in almost 90 years when it opened last summer. According to HMRC data for the year ending 31 July 2023, UK drinks exports rose by 13% to £9.4 billion (US$11.8bn), up from £8.3bn (US$10.4bn) in 2021/22. Citing data from the Scotch Whisky Association (SWA), UHY noted that whisky now accounts for more than a quarter of all UK food and drink exports at a value of £5.6bn (US$7bn) in 2023. James Simmonds, partner at UHY Hacker Young, said: “The premium prices consumers are willing to pay for higher margin, luxury brands is seeing both entrepreneurs and bigger spirits companies continue to rush to capitalise on the market. Spirits, including whisky, have been one of the UK’s success stories. “The expectation is that, longer term, there is much more growth to come in the UK’s heritage spirits brands. “Strong levels of demand are seeing new distillers continue to enter the market, while savvy entrepreneurs in the business are also taking advantage of additional revenue streams such as distillery tours and tastings.” Scotch whisky exports were up by 14% by value last year when compared with 2019 figures, the SWA revealed. However, the figures are a decrease on 2022, which was described as a ‘bumper’ year.
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Welcome to part 4 in a my series of reviews covering recent releases from the Dumbarton-based independent bottler, Dràm Mòr. In this installment, I’ll be getting to grips with a wee sample from Loch Lomond Distillery, arguably one of the most interesting whisky producers in all of Scotland. Loch Lomond is capable of producing a wide range of different spirits. Each new make style is given a unique name in order to differentiate them. Some are named after islands that can be found in the famous loch. Like Inchmurrin, for example. The Loch Lomond Distillery was established in Alexandria in 1964. There was an earlier distillery to hold the name but it was relatively short-lived and the two are unconnected. Over the plant’s relatively short life, it has undergone several upgrades and expansions. Production commenced on a solitary pair of straight-necked stills that look like a combination between pot and column still. In place of the traditional swan neck, there is a cylindrical column, inside of which, there is a series of plates that can be adjusted to alter the character of the spirit being produced. The number of stills doubled in 1990, before a set of traditional swan neck pot stills were added in 1998. Complicating matters further, a set of column stills were added in 1993, to allow for the production of grain whisky. This made the distillery entirely self-sufficient and able to create everything required for making blended Scotch in-house. Despite the distillery’s impressive flexibility and potential for creativity, however, it would be fair to say that its single malt didn’t always enjoy the greatest of reputations. Things have improved in recent years after first one, then a second, management buyout. A new core range, which showcases the spirit at 46% ABV, without chill-filtering or colour enhancement, paints the spirit in a much more positive light and celebrates some of the incredible flexibility that’s been built into the distillery. Inchmurrin is the name given to an unpeated malt, distilled in the straight-neck stills and this Dràm Mòr expression is a single cask, which has been finished in an oloroso sherry hogshead before bottling at 55.7%. https://lnkd.in/eTPrWa-P
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Three Societies on Building South Korean Whiskey Amidst Global Market Challenges: Crafting a Niche in a Competitive Landscape. Bryan Do 도정한, Three Societies Distillery, Oriental Brewery Co., #SouthKoreanWhiskey #ThreeSocieties #WhiskeyIndustry #MarketChallenges #CraftSpirits #GlobalMarket #WhiskeyInnovation #SpiritsBusiness #BrandBuilding #WhiskeyCulture
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Breaking news that will shape the future of American whiskey: the TTB has officially recognized 𝐀𝐦𝐞𝐫𝐢𝐜𝐚𝐧 𝐒𝐢𝐧𝐠𝐥𝐞 𝐌𝐚𝐥𝐭 𝐖𝐡𝐢𝐬𝐤𝐞𝐲 as its own category! As of December 18th, this historic moment marks the first new federal designation for an American whiskey in over 52 years. With this recognition, the category now has a consistent set of standards: 100% malted barley, distilled at one distillery, and aged in oak barrels. But this is just the beginning. These standards ensure quality while giving distilleries the freedom to innovate and bring their unique house styles to life. The ratification of American Single Malt isn’t just about rules—it’s about unlocking the potential of a category that celebrates creativity and craftsmanship. “This is a landmark ruling by TTB and validation for years’ worth of work by American distillers to define American Single Malt. It has been over 52 years since a new type of whiskey was added to our federal regulations. We applaud TTB for formalizing the category which will signal to the world that not only do we believe in and support our own distilleries, but we also recognize that American Single Malt Whiskey is unique and deserves to be defined and protected as other American whiskey categories are. Most importantly, this new definition ensures that consumers worldwide can have every confidence that what they think is in a bottle of American Single Malt Whiskey actually is.” - Steve Hawley, American Single Malt Whiskey Commission President At 𝐁𝐢𝐠 𝐓𝐡𝐢𝐫𝐬𝐭, we’re proud to work with distilleries that embrace this ethos, pushing the boundaries of what whiskey can be. This is a milestone worth celebrating, not just for distillers but for whiskey lovers everywhere. Here’s to a bold future for American Single Malt—and to the pioneers who’ve made it possible!
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This is a crisp, compelling breakdown of the stakes in the new American Single Malt standard of identity. Letting distillers--instead of a government regulator--decide when to make single malt cuts allows for greater exploration of the limitless possibilities of malted barley and greater expression of the distiller's individual vision. This is essential for small craft distillers working their butts off to create differentiation in a market dominated by megabrands distilling whiskey at their megarefineries at 160 proof and less. That proof at that scale might make sense, and they should be free to do it. But for small distillers batch distilling on pot and hybrid stills, greater freedom allows greater control over results. Let distillers make their cuts wherever they want--below 160 or above. And let consumers decide what they like best. We can trust that they will. They deserve the chance! Note: Edited to reflect an edited version of the article.
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