< Back November 2003 News 30 Nov 2003 Whisky's reputation 'under threat' A decision by drinks giant Diageo to change the composition of the famous Cardhu malt has caused waves of protest around the world. Diageo's global brand director told BBC Scotland News Online that the implications of the move had been distorted and over-dramatised. However, rival whisky maker William Grant & Sons, whose products include Glenfiddich and The Balvenie, claims the industry's reputation is being damaged. Its deputy group managing director tells us why... Click here for full story Articles Courtesy of The Scotsman scotsman.com 30 Nov 2003 European probe launched into Diageo dispute THE row engulfing the Scotch whisky industry has intensified even further, after it emerged that the European Commission is set to investigate Diageo’s decision to turn its Cardhu single malt into a blend of five different malts. The EC will examine the matter after receiving a letter of objection to Diageo’s move from European Parliament president Pat Cox. It will investigate whether Diageo’s decision to alter its Cardhu product without making noticeable changes to the whisky’s packaging constitutes an infringement of internal market or consumer protection regulations... Click here for full story Articles Courtesy of The Scotsman scotsman.com 30 Nov 2003 Tourist drive brings malt out of mothballs WHISKY from a distillery once mothballed will go on sale later this year as part of a plan to create a new tourist attraction in rural Perthshire. A few thousand cases of Tullibardine whisky will be placed on the market over the next few months following a label and carton redesign by Wolffe & Co, the Edinburgh consultancy. Tullibardine distillery, near Gleneagles, was sold by the drinks group Whyte & Mackay to a Scottish consortium earlier this year. Jim Beam Brands, Whyte & Mackay’s predecessor, stopped production at the site in 1994. Doug Ross, one of Tullibardine’s directors, said sales of spirit distilled in 1993 would increase gradually over the next 10 years. It will be priced as a mid-market malt at around £23 a bottle. Ross said: "Rather than have to find distributors, we plan to sell it through upmarket outlets such as quality hotels." £10m visitor centre will provide distillery tours, shops and a restaurant The new-look bottle should be in a limited number of shops and bars by Christmas. Michael Beamish, another director, said the previous packaging had looked "generic" and that the new label conveyed more individuality. Whisky made this year has to be aged for 10 years and so will not be available until 2013. The company plans to produce about 100,000 litres a year, putting it on a level with smaller distilleries such as Edradour, which is also in Perthshire. Customers will be able to pay up front for individual casks containing the equivalent of about 360 bottles. Ross estimated a few hundred casks would be sold, generating about £160,000. He said: "We have not been forced into doing this to survive. It is to meet demand from the public and aficionados. If you view [buying a cask] as an investment, it might not make sense, but people like the idea." In the meantime, Tullibardine plans to generate cash by building a £10m tourism attraction and retail centre at the site, which is close to the busy A9 Stirling-to-Perth road. The 50,000sq ft centre will provide distillery tours and a related exhibition, as well as a restaurant and retail centre including a Baxters food shop. It aims to attract 250,000 customers a year. Plans are in the process of being drawn up by 442 Design, the Edinburgh agency. Tullibardine is one of a number of small distilleries which have been reopened or built from scratch over the past 10 years, including Ladybank in Fife and Blackwood in Shetland. The company is part of the industry majority which has criticised drinks group Diageo’s plan to sell a mixture of malt whiskies under the Cardhu brand name. Articles Courtesy of The Scotsman scotsman.com 29 Nov 2003 Whiskies galore The story of how an old neglected Islay distillery was rescued and revived by a team of young private investors a couple of years ago is now familiar to whisky lovers. The new owners of Bruichladdich on the shores of Loch Indaal now call themselves the free spirits and "enfant terribles" of the whisky world. I’d call them today’s heroes; a high-spirited team of Davids fighting against a world of corporate Goliaths. The latest rash of "Laddie" bottlings are some of the best on the malt shelf today - ideal for celebrating St Andrew’s Day tomorrow... Click here for full story Articles Courtesy of The Scotsman scotsman.com 27 Nov 2003 Pure malt row sees Diageo frozen out WHEN Diageo sits down next week with members of the Scotch Whisky Association (SWA) to defend its decision to brand Cardhu as a "pure" rather than "single" malt, it will find itself completely isolated. The Scotsman has learned that the executive of the SWA has told Diageo that it feels the only solution to the present crisis is for the world’s biggest drinks company to withdraw its controversial Cardhu Pure Malt product. The Scotch whisky industry has been angered by Diageo’s decision to sell the whisky in the same style of bottle and with the name of its Speyside distillery on the label. Distillers claim the decision could damage the industry and confuse drinkers into thinking Cardhu was still a single malt, rather than a blend... Click here for full story Articles Courtesy of The Scotsman scotsman.com 26 Nov 2003 Whisky market The whisky industry spends around £90 million a year with Scottish cereal suppliers, and uses about half of all the cereals grown in Scotland. The suggestion by ET Baxter (Letters, 22 November) that distillers have "halved the price they pay" for barley ignores the reality of movements in world prices, and the fact that growers’ contracts are generally with malting companies, not distillers. The suggestion that a higher price paid by distillers for barley would cost the industry just a few pence a bottle ignores the highly competitive nature of the international drinks market in which whisky operates, and the fact that the majority of the retail price is tax, not money going to distillers. Many distillers already buy all their barley from Scottish sources, and often do so while paying a premium to ensure continuity of supply under branded contracts. But, given the vagaries of the weather it is unrealistic to suggest that all barley used by the industry must be grown in Scotland. The brandy industry’s reliance on French grapes in the late 1800s led to its demise when the crop failed, allowing whisky to flourish and become the global industry it is today. No-one with the best interests of Scotland’s economy at heart will place the future of Scotland’s leading indigenous industry at the mercy of the Scottish climate. CAMPBELL EVANS Scotch Whisky Association Atholl Crescent Edinburgh Article Courtesy of The Scotsman scotsman.com 23 Nov 2003 Right spirit of self-censorship ALLIED Domecq, the drinks company, has appointed advisers to vet its ads for those which may link alcohol with sexual success, or... irresponsible drinking. The company, which owns brands including Ballantine’s whisky and Harveys Bristol Cream, is believed to be taking the unusual step to convince public health officials that the drinks industry does not need external regulation. Wishing to prove how responsible it is, Allied has even withdrawn an ad - which has never been shown - for Wet By Beefeater, a cocktail version of Beefeater gin. It showed a man and a woman at a piano with the slogan: "When he looked at her like that she knew she would get wet." What’s the world coming to? Article Courtesy of The Scotsman scotsman.com 22 Nov 2003 No barley will mean no whisky industry Until responsibility for the whisky industry is transferred to Edinburgh, the Cardhu saga will remain a mar-ginal interest for London politicians. The rural development minister, Ross Finnie, is "consulting" on the future of Scottish agriculture, but while Diageo is able to treat malt whisky as a commodity and source the raw ingredients for it from anywhere in the world, the future of Scottish agriculture is not in our hands. The few multinationals which own our distilling industry have halved the price they pay for low nitrogen malting barley in the last seven years. Prices are now below the cost of production, so without subsidy there would be no malting barley grown in Scotland. To pay farmers a price which did give them a return would cost only pence per bottle. It, therefore, comes as no surprise that an industry which treats its supply base with such disdain is as cavalier with the reputation of its final product. The organisation, Linking Environment and Farming, of which I am chairman, promotes integrated farm management, a discipline for farmers which shows the way. However, without a realistic price from the distillers for our malting barley there will be no future for Scottish agriculture. In time, Scotland will have no whisky industry either; no barley grown in Scotland means it will be cheaper to make whisky elsewhere. ET BAXTER Gilston nr Leven, Fife Article Courtesy of The Scotsman scotsman.com 21 Nov 2003 £7,500 bid offer for trip to Macallan A Listener to one of radio's most popular breakfast shows has paid £7,500 for an exclusive trip to the Macallan Distillery on Speyside. William Jones made the highest offer after an hour's frenzied bidding during the BBC's Children In Need auction on yesterday's Wake Up With Wogan programme. It will see Mr Jones, from the Isle of Man, flown north along with a friend and treated to a VIP tour of the distillery near Craigellachie. They will be given access to the Macallan's unique £14.5million Fine and Rare range of vintage malt whiskies which is normally kept well under lock and key. The most expensive bottle in the range is worth £20,000. Mr Jones and his guest will stay at the Craigellachie Hotel and they will be served lunch or dinner in the dining-room at Easter Elchies House, the distillery's spiritual home overlooking the River Spey. They will also be given a tutored nosing and tasting by Bob Dalgarno, the Macallan's whisky maker. Carol McLaren, of the Macallan team which arranged the auction prize, said staff at the distillery were delighted with the amount the Macallan trip had raised for Children In Need. "The distillery team pride themselves in the warm welcome they give all our visitors to ensure that each and every guest enjoys the uniquely exclusive atmosphere at the Macallan," she said. "But the winners of today's auction prize can be sure that absolutely all the stops will be pulled out for their visit. "They will enjoy the truly unforgettable malt whisky experience of a lifetime." Article Courtesy of The Press & Journal pressandjournal 20 Nov 2003 Glenmorangie sees malt sales rise 10% GLENMORANGIE continued its march on the growing malt whisky market yesterday after reporting an 8 per cent increase in half-year profits on the back of growth of 10 per cent in its flagship brand. Chief executive Paul Neep said the group continues to make good progress against all strategic objectives and emphasised that developing and building premium brands for the long term remains the firm’s key objective. Focusing on the Far East, Neep said that in real terms the percentage of Glenmorangie’s business in Asia was relatively small, but he was looking to grow that in the next decade. Neep said: "There are some interesting markets for malt in the Far East, particularly in Korea and Taiwan, and we are looking at their potential." The company said shipments of its Glenmorangie malts rose 10 per cent, while its Glen Moray brand was ahead 8 per cent, spurred by the "Glen of Tranquility" advertising campaign that will continue over Christmas. Overseas sales were strongest in the US with Glenmorangie outperforming rivals, while sales in Canada doubled. The alliance with Bacardi-Martini brought instant rewards in the UK with its marketing strengths enabling Glenmorangie to capture market share from competitors. It also gave it a distribution platform in Germany, Spain, the Netherlands, Austria and Switzerland. The company began bottling the new cream spirit brand Drambuie Sylk in July and this has been introduced to the US market. Neep said the tie-in with Drambuie was a "win-win" for both parties, but he ruled out the possibility of a takeover. "It is a private company, it is not for sale and we have never shown an interest in buying it." Neep added that an expansion at its Glenmorangie distillery had lifted output, while its Ardbeg distillery on Islay is currently operating at more than 90 per cent capacity. Glenmorangie has three distilleries, in Tain, Elgin and Islay, and employs 295 full-time staff. The Ardbeg brand has entered the top ten malts in the off-trade sector, but Neep warned that heady sales growth of 20-30 per cent would soon slow due to limited stocks inherited in 1997 with the distillery, which was mothballed during the 1980s. He also cautioned that a sustained recovery of world economies continued to be uncertain, and he anticipated the medium term environment towards higher UK interest rates could affect consumer spending in the home market. Drinks analyst Fulton Patterson at Seymour Pierce said that there was great potential in the next few years as the benefits of the Brown-Forman and Bacardi tie-ups was just starting to come through. Patterson said: "I think they are a well-managed business now, the new guys in charge are showing their mettle. "Christmas is absolutely vital for them of course. They are now number one in the UK having overtaken Glenfiddich, gearing has come down again. "The Far East is starting to move quite nicely, all these things are quite promising. I think they will carry on growing and go from strength to strength." The dividend was increased by 7 per cent to 4.5p per A ordinary share (which carry limited voting rights) and 2.25p per B ordinary share, reflecting continued confidence in the groups prospects. Article Courtesy of The Scotsman scotsman.com 20 Nov 2003 Distillers meet to talk over diageo issue The Scotch whisky industry has backed down on threats to sue drinks giant Diageo for labelling Cardhu a "pure malt" after changing the contents. But senior directors of the major distillers still plan to pursue the matter with the Scotch Whisky Association (SWA). About 60 distillers met in Glasgow yesterday to discuss what action they should take against Diageo for changing Cardhu from a single malt to a blend of malts from different distilleries. It is understood the vast majority of single-malt distillers were represented, including Allied Domecq, Chivas Brothers, William Grant & Sons, Morrison Bowmore and John Dewar and Sons. Diageo, which owns such brands as Guinness, Smirnoff and Baileys, changed the recipe of Cardhu because of a shortage of single-malt whisky to supply the profitable Spanish market. The industry believes changing the wording on the label from "single malt" to "pure malt" will confuse customers and undermine the prestigious and profitable single-malt market. Senior directors from the main whisky companies wrote to Diageo and the SWA yesterday about the marketing of Cardhu. Their message was that the industry cannot compromise on the protection of single-malt whisky and Diageo should reconsider using the name Cardhu - which has been a single malt for 30 years - for a mixture of malt whiskies. A spokesman for the group said: "We are confident that sense will prevail." Diageo's president for Europe, Ian Meakins, said he was pleased the other companies had agreed to pursue the matter with the SWA. "As previously stated, we have at all times sought to resolve the issue with the rest of the industry through the SWA," he said. "'We remain committed to the long-term future of the SWA as the best forum for continuing this debate and seeking to develop a common and coherent voice for Scotch whisky. "Diageo's commitment to Scotch whisky is absolute. We want the Scotch whisky category to grow and expand. We recognise that innovating in an industry renowned for tradition over modernity has provoked animated discussion." SNP MEP Ian Hudghton has stepped into the fray on the side of the disgruntled distillers. He has approached the European Commission to see if the term single malt could be recognised and protected under the EU's Agriculture Quality Policy. Article Courtesy of The Press & Journal pressandjournal 19 Nov 2003 Distillers single-minded over malt THE Scotch whisky industry last night united against Diageo over its decision to relaunch Cardhu as a "pure malt". At a crunch meeting behind closed doors at the Glasgow offices of Morrison Bowmore, senior executives from all of the major distillers rallied behind the industry’s representative body, the Scotch Whisky Association (SWA) , saying it still had a "significant role to play" in the resolution of the issue. It is understood that, after a "gentlemen’s agreement", it was decided that a statement will not be issued until Glenmorangie reports its interim results to the City at 8 am today. But last night a source close to the meeting said it had resulted in a unanimous condemnation of Diageo’s actions. He said: "The industry is very concerned about the Diageo move and we will be working with the Scotch Whisky Association to resolve the issue." It is believed the vast majority of single malt distillers were present at the meeting, including executives from Allied Domecq, Chivas Brothers, William Grant’s and John Dewar and Sons. Diageo’s move to change the Cardhu bottle’s contents from a single malt to a vatted malt from five distilleries without changing its name has caused outrage in the industry. On Thursday, a meeting between Diageo managers and Scottish MPs to try to resolve the dispute ended inconclusively. Diageo insists it will not back down, claiming the change at Cardhu will boost the £20-a-bottle whisky's profile. All eyes now turn to the SWA’s next meeting on 4 December where industry leaders will meet Diageo to try to reach a compromise. Last night, Diageo said that, ultimately, the issue had to be resolved by the SWA. After reaching the floor of the House of Commons last week, it was the European parliament’s turn to discuss the issue when the SNP MEP, Professor Neil MacCormick, asked the president of the European parliament to write to Diageo’s chief executive. Speaking in the opening session of the parliament’s plenary session in Strasbourg, Prof MacCormick said that brand owners should not mislead the public by abuse of a well-known name. Prof MacCormick said: "Just as we should be concerned when counterfeiters abuse rightholders, so we should be alert when rightholders abuse consumer confidence. "Diageo, the global spirits producer, has lately done this very thing. It is not the single product of a single distillery. Consumers are being misled, and the good name of Scotch whisky is being put at risk." Last week Angus Robertson, the Scottish National Party MP, called on the Prime Minister to support cross-party efforts to force Diageo into a U-turn. He told the House of Commons that Diageo was "undermining the standing of this important industry". A wary Tony Blair told the Commons: "I will look into this issue. I am not entirely sure this is a matter for government. At least, I sincerely hope it’s not a matter for government." Articles Courtesy of The Scotsman scotsman.com 19 Nov 2003 Fiddlers' whisky gig in Frankfurt It's a long way to go for a Saturday night gig, but the 14 teenage fiddlers flying to Frankfurt this weekend to play at a European whisky festival are not complaining. Moray musical group Strathspey Fiddlers have been invited to perform at mainland Europe's biggest whisky festival. A combination trade fair and festival of whisky culture, InterWhisky 2003 features three days of talks and tastings of whiskies from Scotland, Ireland, Canada and in the USA. Whisky is big business in Germany, with German retail stores selling approximately 12million bottles of Scotch whisky last year, and about 300 people are expected to attend the weekend festival. The event will culminate in a Scottish dinner in the Inter-Continental Hotel, with entertainment provided by the Strathspey Fiddlers. The performance will not be limited to fiddling, according to group leader Donald Barr. The teenagers from Huntly, Keith and Buckie will also provide piping, dancing and singing. He said: "Performing for 300 people from all over Europe is going to be great fun." The fiddlers will leave Scotland early on Saturday morning and return the next day. During their brief visit, the group will be treated in style, staying overnight at the five-star hotel where the dinner is taking place. Several area distilleries will be represented at the festival, including Glenfiddich, Glenlivet, Glenrothes and Strathisla. Article Courtesy of The Press & Journal pressandjournal 18 Nov 2003 Water of life's secrets sold off IT HAS been Scotland’s number one indigenous export since Friar John Cor first appeared in the Exchequer Rolls with eight bolls of malt in 1494. But now the £2 billion whisky industry is not only exporting the water of life but also the means and materials to make it... Click here for full story Articles Courtesy of The Scotsman scotsman.com 18 Nov 2003 Diageo chief's £50,000 shares windfall DIAGEO, the drinks giant, launched an offensive yesterday to rebuff accusations that it was forced to blend its single malt brand Cardhu because it had misjudged stock levels. In an interview with The Scotsman, Jonathan Driver, the company’s global malt whisky director, said it was a strategic move aimed at building on the success Cardhu had enjoyed in Spain. Mr Driver said: "We are not short of Cardhu, but we have reached capacity. The issue here, and the vocabulary is very important, is strategic. Shortage is not the issue. I repeat, we are not short of Cardhu." However, the issue has put the world’s largest drinks group at odds with the rest of the whisky industry. Yesterday, the row took another turn when an SNP MP, Angus Robertson, warned Tony Blair that Diageo’s decision to change a brand of single malt to a blend risked "undermining the standing" of the industry. Mr Blair said he was not sure it was a matter for government, adding: "At least I sincerely hope that it’s not a matter for government." Critics were angered when the company announced plans to sell the whisky in the same style of bottle and with the name of its Speyside distillery on the label. They claimed the decision could both damage the industry and confuse drinkers into thinking Cardhu was still a single malt, rather than a blend. Article Courtesy of The Scotsman scotsman.com 17 Nov 2003 Distiller's sales jump WHYTE & Mackay, the privately-owned whisky distiller formerly known as Kyndal, has reaped the benefits of a push into England and Wales following a jump in sales for the four months to the end of August. The company sold 20,000 cases south of the Border - worth a total of £2.4 million - during the period compared with just 3500 cases, for £447,000, last year. Whyte & Mackay said a distribution deal with the UK’s top five supermarkets had fuelled the rise. Articles Courtesy of The Scotsman scotsman.com 14 Nov 2003 McConnell and MPs intervene in industry rift over single malt It followed a second meeting between the all-party Commons scotch whisky group and Diageo directors in an attempt to heal a serious rift in the industry between those anxious to preserve the integrity of "single" malt brands and the decision of Diageo to replace its former single malt Cardhu with a blend of malts, calling it "pure malt"... Click here for full story Article Courtesy of ThePress & Journal pressandjournal 13 Nov 2003 Domecq chiefs gain 38% bonus increases ALLIED DOMECQ, the wines and spirits group, increased the performancerelated bonuses of three of its top executives by more than 38 per cent in its past financial year, even though the company’s share price fell by 7 per cent during the same period. The world’s second biggest drinks company paid Philip Bowman, chief executive, a performance-related bonus of £1.04 million for the year to August 31, a 40 per cent rise on the year before. Graham Hetherington, chief financial officer, received a £507,000 bonus, up from £366,000 last time. Meanwhile, David Scotland, president of the wine division, received a 63 per cent increase in his bonus, bringing it to £542,000 for the year. The company defended the bonuses, saying they were “commensurate with the much more demanding economic conditions in many of the relevant markets”. In October the maker of Ballantine Scotch whisky and Beefeater gin reported a 3 per cent rise in full-year pre-tax profits to £480 million. The company said it was the worst market since 1999, as the war in Iraq and the outbreak of severe acute respiratory syndrome (Sars) hit demand. A company spokesman said: “It’s true that our headline earnings per share figure rose by only 3 per cent — but we were hit by the decline in the value of the dollar and an increase in pension payments. When these exceptional items are stripped away we increased underlying profits by 20 per cent.”. Article Courtesy of The Times The Times 13 Nov 2003 Distiller defends Cardhu blend DIAGEO, the drinks giant, launched an offensive yesterday to rebuff accusations that it was forced to blend its single malt brand Cardhu because it had misjudged stock levels. In an interview with The Scotsman, Jonathan Driver, the company’s global malt whisky director, said it was a strategic move aimed at building on the success Cardhu had enjoyed in Spain. Mr Driver said: "We are not short of Cardhu, but we have reached capacity. The issue here, and the vocabulary is very important, is strategic. Shortage is not the issue. I repeat, we are not short of Cardhu." However, the issue has put the world’s largest drinks group at odds with the rest of the whisky industry. Yesterday, the row took another turn when an SNP MP, Angus Robertson, warned Tony Blair that Diageo’s decision to change a brand of single malt to a blend risked "undermining the standing" of the industry. Mr Blair said he was not sure it was a matter for government, adding: "At least I sincerely hope that it’s not a matter for government." Critics were angered when the company announced plans to sell the whisky in the same style of bottle and with the name of its Speyside distillery on the label. They claimed the decision could both damage the industry and confuse drinkers into thinking Cardhu was still a single malt, rather than a blend. Article Courtesy of The Scotsman scotsman.com 12 Nov 2003 Rebirth of one of Scotland's oldest whiskies TULLIBARDINE, one of Scotland’s oldest distilleries, will re-open for business at the end of the month almost ten years after it was closed down. The distillery, in Blackford just south of Gleneagles in Perthshire, will distill a limited production of Tullibardine Single Malt. Doug Ross, a director of Tullibardine, the consortium which bought the site for £10 million in June, described the reopening as the culmination of a long-term dream. Mr Ross said: "We have spent a significant sum in restoring the distillery. When we acquired it from Whyte and Mackay in the summer it was in a state that had been sympathetically de-commissioned. All the kit was in good condition but since then we have fitted and upgraded the pumps, valves, pipes and made them more efficient." Described by Michael Jackson, author of the Malt Whisky Companion, as "eminently quaffable", the whisky has a soft, sweetish, lemony style with a vanilla like spiciness. Customers will be offered the chance to buy a personalised cask which will be kept in a warehouse for a period of ten years. The casks, on the market at £800, can be labelled, bottled and distributed to the owner’s specifications. The original distillery dates back to the late 1790s. Home to Highland Spring, Blackford also boasts the site of one the oldest breweries in the UK, dating back to 1488 when it produced a special ale for the coronation of King James IV at Scone. In the 1970s, Tullibardine was taken over by Invergordon before being mothballed in 1994. David Williamson, of the Scotch Whisky Association, said: "There has been an encouraging trend of whisky distilleries being reopened and redeveloped and this is good news for the industry." Article Courtesy of The Scotsman scotsman.com 11 Nov 2003 Whisky galore not for Iain IAIN Banks’s latest oeuvre, Raw Spirit is primarily about whisky but also "an idiosyncratic journal which is part travel book". The publishers insisted that Banks, "a bit of a petrol head", should drive round the distilleries. But isn’t it funny how whenever publishers commission a Scottish writer to do a book on whisky, they make sure they do it on wheels? Obviously, they do not trust them otherwise to stay sober. Our old mucker on the Diary, Tom Morton, had to do his on a motorbike with sidecar. Meantime, Banks usually enjoys a dram at his local, the Albert Hotel in North Queensferry, where he was featured in the foodie section of a Sunday magazine this weekend. The Albert’s hostess, Rhona Campbell, was saying, though, that he is not the only famous customer: "Gordon Brown has a house in the village, so he pops in for drinks. Tony Blair used to come with Mr Brown, but he hasn’t been in since Labour has been in power." Now, there’s a surprise. But where better to build bridges than on the Forth? The Albert can replace Granita - or even Montpeliers - as the scene of Labour’s new deal. Articles Courtesy of The Scotsman scotsman.com 10 Nov 2003 Distillers in singular threat to Diageo dram A Row at the heart of the whisky industry is threatening to spill over into the courts. It comes after industry giant Diageo provoked anger among rival distillers by attempting to pass off a blend of whiskies as a prestigious single malt. Now a group of distillers have come together to explore the possibility of legal action against Diageo. They say the move could clearly establish a legally binding definition of single malt and benefit the industry. Representatives from about 60 brands are due to meet in Glasgow a week tomorrow. A civil action of consumer deception against Diageo has already been mooted. The row flared up after Diageo changed the recipe of one of Speyside's most popular malts, Cardhu. Instead of being a traditional single 12-year-old malt, it is now being made from vatted malt from several distilleries, although it is still being sold as Cardhu. The only change Diageo has made to the label is to substitute the word "single" with "pure". Rivals claim that the move will mislead customers and could seriously damage the worldwide reputation of the Scotch whisky industry. Diageo, which accounts for about half of Scotland's whisky distilling, said it announced changes to Cardhu in July after stocks of the single malt ran low and led to fears they may not be able to meet increasing demand. It is mainly marketing the "pure" malt in Spain at the moment, then will move into Portugal, France, Italy and Greece. It should be available in the UK in about a year. Diageo says it has carried out publicity, advertising, tasting and consumer education, particularly in Spain to ensure consumers are aware of the change. Scottish Whisky Association spokesman David Williamson said: "The Scottish Whisky Association is very much involved in discussions about changes to protect and allay the concerns expressed by some member companies. "We will have discussions with Diageo about the matter to find a way ahead in the best interests of the whole industry." John Grant, managing director of J & G Grant of Speyside, which makes Glenfarclas, said: "They are misleading the public by selling Cardhu in the same bottle, with the same packaging it has had for years, when what's in the bottle is not Cardhu. "In my opinion, it sets a dangerous precedent." Article Courtesy of ThePress & Journal pressandjournal 09 Nov 2003 Diageo hits back in whisky wars DIAGEO, the Scotch whisky producer at the centre of an increasingly bitter row over a new, vatted version of its 12-year old Cardhu malt, has hit back at claims that its controversial changes will harm the industry and predicted others would follow in order to grow their exports. Jonathan Driver, Diageo’s global malt whisky director, last night defended his decision to turn Cardhu single malt into a pure malt - a mixture of five whiskies from various Speyside distilleries - to keep up with demand. He said rival distillers should welcome his innovation as a way of staving off competition from other spirits categories such as vodka and rum. He told Scotland on Sunday: "If this is successful, others will follow. That doesn’t mean the end of single malts - it means it is a better and bigger malts category at the end of it all. I genuinely believe innovation is required to take the malt whisky business to the next level." Diageo is already distributing the Cardhu pure malt in Spain, France, Portugal and Greece after runaway success grew sales by 200,000 cases in little over a decade. It is also testing the concept in the US, despite the new product isolating Diageo from the rest of the Scotch whisky industry at home. Others are concerned the move will tarnish the reputation of the industry, which had exports worth £2.28bn last year. But Driver’s comments were described last night as "wishful thinking" by Tony Hunt, deputy managing director of William Grant & Sons, which is leading the opposition. Hunt accused Diageo of capitalising on the ignorance of Spanish consumers - the biggest drinkers of Cardhu. "The reason why single malt as a category has become the jewel in the crown as far as the Scotch whisky industry is concerned is because we haven’t taken shortcuts," he said. But Driver said he was ready for the controversy that would meet the launch of the pure malt that it first dreamt up two years ago. He revealed that limited inventory and growing popularity of single malts had been a looming "crisis point" for Diageo since the company was created in 1997 from the merger of Guinness and GrandMet. It has been selling its Lagavulin single malt at capacity for the past four years. Oban, which sells 64,000 cases a year, has since followed suit, and Dalwhinnie is not far behind in hitting the ceiling of supply. But Driver rejected the idea that the pure malt concept could be spread to the rest of his portfolio. He said: "Our Lagavulin consumers would have simply rejected the whole proposition." However, he argues that Cardhu, which has become the fastest-growing malt whisky in the world, is another matter. "To a Cardhu consumer, to say it comes from a small valley on Speyside is just a little bit too much information when there is so much else that people adore about it," he said, predicting others would follow suit to grow their brands globally. Driver will appear before the all-party Scotch Whisky Industry group again this Thursday. Article Courtesy of The Scotsman scotsman.com 08 Nov 2003 MPs take shot at resolving Cardhu crisis SENIOR Westminster MPs are trying to end the dispute over plans to change the make-up of one of Scotland’s top malt whiskies. Diageo, which has its Scots HQ in Edinburgh, wants to end the production of Cardhu single malt and instead produce a blend of different malts. They want to label this as "pure malt’’, claiming that existing stocks of the original product are running low. But small single malt producers are outraged at this potential dilution of their major selling point. Some rival producers - including John Grant, who produce Glenfarclas - are threatening legal action. William Grant and Glenfiddich are also outraged. They have warned of major sales slumps in the key United States and Japanese markets if the change goes ahead. The meeting was hosted by Angus Robertson, Scottish Nationalist MP for Moray - home to 50 per cent of Scotland’s distilleries including Cardhu, and included Treasury Select Committee chairman John McFall, who represents Dumbarton. Following the meeting Diageo has committed itself to talks to try to resolve the dispute, saying it would discuss "concrete solutions". Over recent weeks the bitter dispute has divided the whisky industry, which has seen threats of legal action and a possible split in the industry body the Scotch Whisky Association. Speaking after the meeting Mr Robertson MP, who is vice-chairman of the All-Party Scotch Whisky Industry group, said: "This is a positive development and we sincerely hope that realistic proposals will be made next week by Diageo to help end this damaging crisis." Articles Courtesy of The Scotsman scotsman.com 06 Nov 2003 CL distillers chief quits THE chief executive of East Kilbride-based distillers CL World Brands has unexpectedly quit following an announcement that the chairman of its Trinidadian parent firm wanted to be more hands-on in the day-to-day running of the business. Ian Bankier’s departure will raise questions over the future base of the company, formed last year. Arnaud de Trabuc, executive director of strategic affairs for CL World Brands, insisted the company would continue to be headquartered out of East Kilbride. CL World Brands distills the Bunnahabhain and Black Bottle whisky brands and was formed last year through the acquisition of the Burn Stewart distillery by Trinidad and Tobago conglomerate CL Financial. Articles Courtesy of The Scotsman scotsman.com 05 Nov 2003 Edrington moves to reshuffle board IAN Curle, the chief executive-in-waiting of the Edrington Group, the maker of the Famous Grouse and The Macallan whiskies, moved yesterday to strengthen his board with the appointment of two new executive directors and a restructuring of the business. Graham Hutcheon, previously distillation director, based at The Macallan Distillery on Speyside, succeeds Curle as group operations director, while Bill Farrar, who masterminded The Famous Grouse’s quirky TV adverts, is promoted to group sales and marketing director. Barrie Jackson, a main board director for the last nine years, is promoted from sales and marketing director to a new role as group strategy director and will concentrate on directing the group’s future strategy. Curle, 42, who was appointed deputy chief executive in May, succeeds Ian Good as chief executive next April to become the youngest chief executive in Edrington’s 150-year history. Curle said he hoped the moves would strengthen the business, which has doubled in size in the last four years, and will put it in good shape for the tough challenges that lie ahead in the international marketplace. Earlier this year, Edrington sold its Bunnahabhain and Glengoyne distilleries to Burn Stewart Distillers and Ian Macleod respectively, in deals analysts said were worth more than £20 million. The move was part of a strategic change in the company to focus on its four main brands, The Famous Grouse, The Macallan, Highland Park and Cutty Sark. In July the firm reported a 24.6 per cent increase in pre-tax profits to a record £61.7m while turnover rose 14.9 per cent to £230.7m. Articles Courtesy of The Scotsman scotsman.com 02 Nov 2003 Scotch on the rocks over Diageo THE Scotch Whisky Association has been thrown into chaos over an unprecedented split between Diageo, Scotland’s largest whisky producer, and the rest of the industry. Members of the SWA, the industry’s trade body, will put intense pressure on Diageo to reconsider its decision to axe its Cardhu single malt brand when its governing council meets next month... Click here for full story Articles Courtesy of The Scotsman scotsman.com October 2003 News 30 Oct 2003 Allied Domecq denies SWA pull-out threat ALLIED Domecq denied last night that it was on the verge of quitting the Scotch Whisky Association (SWA) in protest against the inaction over Diageo’s decision to turn its Cardhu single malt Scotch whisky into a vatted malt. A spokesman for Allied said there was "no truth in the rumour whatsoever", but added that Allied are "extremely concerned about this issue and the reputation of single malt". The row erupted after it emerged that Diageo has substituted the contents of its 12-year-old Cardhu single malt, taken from one source, with a vatted malt, blended from a number of Speyside distilleries. It is a move that many believe will damage the integrity and authenticity of every category of whisky produced in Scotland. A spokesman for the SWA said it was discussing the change with Diageo. Articles Courtesy of The Scotsman scotsman.com 29 Oct 2003 Festival aims to boost autumn tourism levels ABOUT 140 events are planned in the ten-day Borders Banquet festival, including cookery demonstrations, murder mystery dinners, wine and whisky tastings and art evenings. Funded by Scottish Enterprise Borders, it is designed to boost tourism at a traditionally quiet time of the year, said Alan Elliot, tourism business manager at SEB. Last year it brought in an estimated £150,000, up 29 per cent on the event’s inaugural year. Elliot said: "Official figures show that 25 per cent of all tourism spend is on food and drink. Last year we saw a large increase both in average food and drink sales and in the number of bed nights sold as people use the event as a reason to come to the region for a short break." Articles Courtesy of The Scotsman scotsman.com 29 Oct 2003 Whisky firm falls into red MORRISON Bowmore, the whisky distiller, has fallen into the red because of costs associated with a distribution venture in Uruguay. The Sociedad Anonima joint venture with the Uruguayan government cost Bowmore £700,000 in 2002, and the company has now exited the business. The venture, along with a move away from sales of cheaper bulk blended whisky, saw Bowmore post a loss of £1.1 million for the year, compared with a profit of £948,000 in 2001. Articles Courtesy of The Scotsman scotsman.com 28 Oct 2003 Bottling plant is pretty dram fast SCOTLAND’S fastest whisky bottling plant, capable of producing 600 bottles every minute, has been officially opened by the Edrington Group. The maker of brands such as Famous Grouse and the Macallan has invested £3 million in the high-speed bottling plant at its Glasgow premises. The construction of the new plant on Great Western Road saved 50 jobs at the 150-year-old company and is aimed at ensuring the £800m Scottish industry continues to grow. First Minister Jack McConnell, who officially opened the plant, said: "Scotland’s whisky industry is one of the most important elements of our economy, and its global reputation is stronger than ever. "Its success plays a strong part in attracting visitors to Scotland and one in 50 Scottish jobs depend on this most famous of industries." Articles Courtesy of The Scotsman scotsman.com 26 Oct 2003 William Grant in good spirits as company set to grow FAMILY-owned distiller William Grant is looking to acquire premium spirit brands after posting a 31% rise in pre-tax profits. The Glenfiddich distiller wants to boost its portfolio, which ranges from Glenfiddich malt whisky to OVD rum. A spokesman said: "We are looking for acquisition opportunities. We are a premium spirits business and it makes sense to continue to do that." He refused to identify which brands were under consideration, but the company’s product range is underweight in brandy. Grant’s, which has offices in Bellshill, London and Dufftown in Moray, has considerable firepower at its disposal. At the end of last year the company held £25.9m in cash, up £8m on the previous year. That increase came despite an £11.2m spending spree which brought Gibson’s Finest Canadian whisky, Polstar vodka and three rum brands into the group. Last year’s acquisitions, along with rising sales of William Grant’s blended whisky, contributed to a 10% rise in turnover to £323m in 2002. Pre-tax profits increased by 31% to £60.8m. The spokesman said sales of the blend had benefited from customer loyalty and a strong marketing campaign. Grant’s benefited from its stake in the Famous Grouse and Macallan whiskies, which it shares with rival distiller Edrington. Articles Courtesy of The Scotsman scotsman.com 26 Oct 2003 Whisky giant's 'threat' to pure single malts NO-ONE can accuse Peter Smith of lacking fighting spirit. "Everyone talks about the whisky industry being fuddy-duddy and not going anywhere, but we as a company are not like that. We have made changes that we think will benefit everyone in the end, and if other people don’t like it, tough. What’s important is that our customers do... Click here for full story Articles Courtesy of The Scotsman scotsman.com 23 Oct 2003 Double Award for Bruichladdich in the USA In a unique double, Bruichladdich has been awarded the title of Distillery of the Year for the second time in three years and Import Malt of the Year for their Vintage 1970 by Malt Advocate, the leading spirits magazine in the USA. The award was announced on Tuesday 21 October at WhiskyFest in New York. Mark Reynier, Managing Director was delighted with the news, ‘It’s extremely gratifying to be recognised for our innovative approach to making whisky as natural and authentic as possible and validates the major decision we made this year to bottle Bruichladdich at the Distillery.’ Andrew Gray, Sales Director, agreed, saying ‘I’m sure that the quality, depth and breadth of range we have produced in such a short time contributed to the decision to make us Distillery of the Year. It’s amazing to have won this very prestigious title twice, particularly since we’ve only been in operation since 2001.’ Jim McEwan, Master Distiller, who received the awards, commented ‘Winning the title Malt of the Year is a testament to the skills of the guys who made the whisky and the ones who looked after it whilst it was maturing. I had the easy job. I found it, treated it gently - with respect - and let it speak for itself.’ The award for the 1970 confirmed the five star rating already given to this exceptional whisky by US Spirits writer Paul Pacult, who described it as ‘supremely sophisticated and integrated… a complete malt whisky experience’ . Articles Courtesy of Bruichladdich bruichladdich 23 Oct 2003 Diageo in good spirits DIAGEO, the world’s biggest wines and spirits company, has told investors it is well positioned to achieve a "superior" performance following last year’s drop in profits. Updating shareholders at its annual meeting, chief executive Paul Walsh said the company had demonstrated its ability to generate growth even in challenging times as the global economy struggles to recover from a major slump. He said some markets were beginning to show signs of improvement, particularly in the United States, which is now Diageo’s most important market. The group’s major brands include Johnnie Walker Black Label whisky, Baileys cream liqueur, Smirnoff vodka and Guinness. Mr Walsh said: "Continued share gains, even in difficult markets such as those in Latin America, provide further evidence that Diageo is well positioned to achieve superior performance. "Therefore, while recognising that we are only three months into the current financial year, we have not seen any trends emerging which would lead us to change our view of Diageo’s future prospects." Earlier this week, rival Allied Domecq - the world’s second-largest drinks company - reported a three per cent rise in annual profits and said the new financial year had started well, despite difficult market conditions in Europe. The owner of Ballantine’s whisky, Beefeater gin, Maker’s Mark bourbon and Dunkin’ Donuts posted a pre-tax profit of £495 million for the 12 months to the end of August, up from £480m for the previous year, on turnover two per cent higher at £3.4 billion. But Diageo’s annual results, announced last month, showed a four per cent slide in underlying operating profits to £2bn in the year to the end of June. While the results were in line with market expectations, the group said it took a £1.5bn hit from the disposal of the Burger King fast food chain in December 2002, which it sold to focus on its spirits division. Burger King was sold to a group of venture capitalists - led by Texas Pacific and including Bain Capital and Goldman Sachs Capital Partners - for £947m after seeing a previous £1.5bn deal with the same consortium fall through. Annual turnover at Diageo, which employs 3000 north of the Border under the leadership of Scotland director Allan Burns, rose three per cent last year to just under £9bn. Analysts believe the company - formed from the merger of drinks group Guinness and food and spirits firm Grand Metropolitan in 1997 - is lining up a £1.3bn sale of its 21 per cent stake in General Mills, maker of Cheerios cereal and Yoplait yoghurt. Articles Courtesy of The Scotsman scotsman.com 22 Oct 2003 Allied sinks as results lose fizz SHARES in Allied Domecq, the world’s second biggest drinks firm after Diageo, were the FTSE 100’s second biggest faller yesterday after flattish annual results and a bleak statement on trading in mainland Europe. The market was taken aback that Allied’s volume growth in spirits and wines, excluding acquisitions, slowed to just 1 per cent in the year to end-August from 4 per cent at the half-year stage. Philip Bowman, group chief executive, said: "The European economies are difficult. We don’t see any light at the end of the tunnel." Nigel Davies, a drinks specialist at investment bank JP Morgan, said: "Growth in the second half has slowed considerably in turnover terms and I think people are concerned about what that says about future growth." Analysts at Dresdner Kleinwort Wasserstein put their "add" investment recommendation on Allied under review. Shares in the group, which recently lost out in the bid battle for Peter Lehman Wines in Australia to Switzerland’s Hess Group, closed down 16.75p, or 4 per cent, at 384.5p. Allied, which unveiled a 3 per cent rise in underlying pre-tax profits to £495 million, said that important mainland European markets for the company, such as Germany, France and Italy, were still suffering from severe trading conditions. Allied’s best-known brands include Ballantine’s whisky and Beefeater gin. Bottom-line pre-tax profits for the group, after exceptionals, fell 15 per cent to £483m (£571m last time). Bowman, declaring an 8 per cent increase in the annual dividend to 14p, said a strong performance in the US - where profits rose 31 per cent - helped the company ride out the tough conditions in the eurozone. Trading profits in the spirits and wine division as a whole rose 4 per cent to £522m, helped by Allied’s recent string of acquisitions. During the period, Sauza tequila became the world’s fastest-growing premium spirits brand, with volumes up a hefty 28 per cent. Allied’s burgeoning wine business grew volumes by 18 per cent, mainly due to the acquisition of Bodegas y Bodegas in December 2001 and Mumm Cuvee Napa. Trading profit in Europe dropped 21 per cent to £114m, and 33 per cent before acquisitions were taken into account. And there was a sharp cut of almost one-third in advertising spending in the Asia Pacific region as a result of the SARS epidemic last spring. Meanwhile, profits at Allied’s quick service restaurants Dunkin’ Donuts and Baskin Robbins climbed 8 per cent. There has been speculation that Allied will eventually pursue a merger with another major spirits player to try and make up some headway on Diageo, with Pernod and Bacardi of France and Brown-Forman of the US said to be the desired targets. But Bowman said that Allied Domecq was not talking to anybody currently. Articles Courtesy of The Scotsman scotsman.com 21 Oct 2003 Sweden faces EU fines if it fails to cut tax on Scotch whisky imports PRESSURE is building on Sweden to cuts its tax on Scotch whisky after being warned by the European Union that its regulations on importing alcohol violate market rules. Under Swedish law, those wanting to import alcohol for personal use have to apply to the country’s strict monopoly, Systembolage, to act as a selling intermediary. The European Commission argues that Sweden is depriving companies and individuals their rights under EU law, saying companies have a right to sell products throughout the 15-nation bloc unhindered. The criticism came just weeks after Denmark gave a major boost to the whisky industry by slashing its tax on Scotch, making it cheaper to buy a bottle in Copenhagen than it is in Edinburgh. An EU spokesman, said of the Swedish process: "It’s complicated and it’s very expensive so it’s a major disincentive." If Sweden, which applies duty on whisky at twice the UK rate, does not apply European market rules, it faces being fined heavily by the EU high court. The move was welcomed by the Scotch Whisky Association, which claimed that liberalising the market will increase pressure for excise tax to be bought down. David Williamson, of the association, said: "We welcome the move because it is introducing a simple and less complicated system for consumers who want to buy alcohol from abroad." Brussels has also ordered Sweden to abolish its current limits on the amount of duty free that may be brought in by individuals for personal consumption from 1 January, 2004. Williamson said: "Individuals will be allowed to bring back ten litres of alcohol without incurring additional taxation. In light of this, Denmark has cut its duty by 45 per cent and Finland is proposing a 44 per cent cut. Sweden hasn’t announced its intentions yet, but obviously pressure is building for excise tax to be bought down." Last year Sweden imported £25.1m worth of whisky, or 8.3 million bottles. About 13 per cent of that was malt whisky. Articles Courtesy of The Scotsman scotsman.com 21 Oct 2003 Domecq in good spirits ALLIED Domecq, the world’s second-largest drinks company, today reported a three per cent rise in annual profits and said the new financial year had started well, despite difficult market conditions in Europe. The owner of Ballantine’s whisky, Beefeater gin, Maker’s Mark bourbon and Dunkin’ Donuts posted a pre-tax profit of £495 million for the 12 months to the end of August, up from £480m for the previous year, on turnover two per cent higher at £3.4 billion. Chief executive Philip Bowman said: "Early indications are that the 2004 financial year has started well and we are on track to meet current expectations." Ballantine’s and Beefeater continued to grow market share in Spain. Despite gains, both brands recorded declines in overall shipment volumes as a result of the change in buying by Spanish wholesalers. Outside Spain, Ballantine’s volumes grew three per cent, while Tia Maria volumes soared 33 per cent in the UK. Articles Courtesy of The Scotsman scotsman.com 20 Oct 2003 Intrepid trio look to put fun back into whisky THREE entrepreneurs are about to embark on a mission to dispel the stuffy pipe and slippers image of Scottish whisky in the hope of opening up the spirit to a whole new generation of drinkers. The Easy Drinking Whisky Company (EDWC) is launching three whiskies - dubbed simply The Rich Spicy One, The Smokey Peaty One and The Smooth Sweeter One. The founding directors will follow up the launch of their whiskies - branded under the label Jon, Mark and Robbo - with a tour of Scottish off-licences to better equate the public with what they believe should be whisky’s fun image. David Robertson, a director of EDWC and former master distiller of The Macallan, said: "There has been a snobbery attached to whisky drinking that has given it an almost elitist image. Jon, Mark and Robbo is aimed at removing the barriers to whisky drinking and making it fun to drink when you want." The idea for EDWC was hatched on a Scottish hillside last Christmas and came to life after the three - brothers Mark and Jon Geary and David Robertson - secured seed funding from the Edrington Group, the Scottish drinks company, to produce its three malt mixes. The three men hope to convert existing whisky drinkers, who are tired of the spirit’s frumpy image, as well as tapping into the generation brought up on wine labels such as Fat Bastard. Similar moves to revamp staid images of other spirits and beverages in the past have met with mixed success. Bicardi managed to make the appeal transition when it introduced its range of flavoured alcopops under the label Bicardi Breezer in the late 90s. However, a similar attempt to revive the popularity of Seventies favourite Babycham met with less success. Jon, Mark and Robbo’s three whiskies will be available exclusively from Oddbins at the end of the month. Articles Courtesy of The Scotsman scotsman.com 17 Oct 2003 442 to design £500,000 Tullibardine complex EDINBURGH-based consultancy 442 has won the contract to design the £500,000 Tullibardine Distillery retail outlet, restaurant and visitor attraction in Perthshire. The Leith design agency, which started life in November last year, will help to develop and launch an innovative new retail brand based around the traditional values of whisky. David Dunn, 442’s design director, said: "Our strong commercial focus and modern retail experience is what appealed to the client team." The project at Tullibardine Distillery forms part of a 50,000 sqft multi-million pound retail development at Blackford, near Gleneagles in Perthshire. Articles Courtesy of The Scotsman scotsman.com 12 Oct 2003 Scots invited to help bring UK town to China ITS citizens will enjoy a pint in a traditional pub and may send their children to a school run by Eton College. But while Thames Town will be British in name and character, it will be a long way from home. Thames Town is one of nine ‘towns’ being built in European styles in the suburbs of Shanghai. Together they are known as Songjiang New City, a £300m project to house 500,000 people in one of the world’s biggest and fastest-growing cities. Now companies from Scotland are being invited to take part in building Thames Town, which will replicate the character of a small British town, complete with its own hospital and church. Joan Serafini, who was a civil servant in Scotland for 22 years and now runs her own events business, is organising a symposium in Edinburgh for companies to meet a delegation from the developer, Henghe Real Estate Company, on November 24. A number of blue-chip companies are on Henghe’s target list, including Tesco, Sainsbury, the Savoy Hotel, Hamleys and Addenbrooke’s Hospital. Scottish firms have also been targeted in the whisky, hospitality and engineering sectors. "British businesses are seeing huge opportunities in China and this event will give Scottish firms a chance to find out more about the new town," said Serafini, who flies out to Shanghai this week for an update on the project. Engineering firm WS Atkins has been sending teams out to Shanghai to develop the masterplan and help with the development and design of the buildings, streetscape and landscaping. Serafini, who was assistant private secretary to former Scottish Secretary Ian Lang and subsequently private secretary to First Ministers Henry McLeish and Jack McConnell, was asked initially to send two pipers and a Highland dancer to an exhibition and marketing launch this month. But those behind the project have now asked her Glasgow-based company, Equator Events Management, to take on a consultancy role to identify companies that might be interested in getting involved in the development and provision of a middle school, nursery, whisky exhibition and shop, steakhouse, Scottish souvenirs shop, pub, five-star hotel and gym. The symposium will be held at the Sheraton Grand Hotel, Edinburgh, on November 24. Articles Courtesy of The Scotsman scotsman.com 11 Oct 2003 Regular raises glass to 72 years A WAR veteran has been drinking in the same pub for the last 72 years, his landlord confirmed on his 90th birthday. Tommy Spurr has popped in almost daily for two pints of bitter and two glasses of whisky at the White Cross Pub, Pudsey, West Yorkshire. Articles Courtesy of The Scotsman scotsman.com 07 Oct 2003 Jailed over moonshine whisky A MAN was jailed for two years yesterday for producing moonshine whisky at an illegal distillery on remote farmland. David Cox pleaded guilty to evading £529,275 in excise duty. He was arrested in January this year after Customs and Excise officers raided farm buildings near Bridgnorth in Shropshire and found six illegal stills. They also discovered 1,500 litres of distilled whisky - some bottled and crated under the name Highland Game - and 35,000 litres of fermenting liquor. Articles Courtesy of The Scotsman scotsman.com 07 Oct 2003 Duncan quits Glenvarigill for Drambuie GLENVARIGILL, the Edinburgh luxury motor group bought out from liqueur company Drambuie in a £40 million deal, has lost its marketing director to its former owner. Miles Duncan, who previously worked with whisky giant Whyte and Mackay, said he was attracted by the opportunity to grow and focus the Drambuie brand in its home market and the role’s commercial side in sales and marketing. Duncan is the second director to leave Glenvarigill in weeks, after Gavin Manson, the former finance director, sold his 40 per cent stake to managing director Tim Bartlett for an undisclosed sum. Yesterday Bartlett said the two departures were unrelated. " Martin has been with us for five years, he has made a significant contribution, and was looking for a fresh challenge," he said. Articles Courtesy of The Scotsman scotsman.com 05 Oct 2003 Whisky fans nip in for Fife distillery shares A WHISKY company planning to build a new distillery in Fife has raised almost £500,000 from private investors. The Ladybank Company of Distillers has sold out its first tranche of shares released to enthusiasts and investors in the UK and overseas. It eventually hopes to raise about£1.5m to fund the creation of the distillery on the outskirts of Ladybank village. Work is expected to start in the new year, with first production of its single malt pencilled in for before the end of 2004. About 200 UK-based investors have each paid £1,850 for membership of the club, which will entitle them to the equivalent of 12 bottles a year from each vintage during the first 10 years of production. The club has now released a second tranche of memberships available to UK investors at £2,500. James Thomson, one of the founding directors of the project, said Ladybank had now passed a major hurdle. "When we began this we thought the hardest part would be getting up to the 150-200 member level, but that once we had achieved that we would have the momentum we needed." The company’s marketing efforts have included exhibiting at an alternative investment show in London last month. "We see this as a lifestyle investment in the same way as someone might invest in classic cars or art," Thomson said. "It gives the investor a great deal more than a pure cash investment." He said efforts were now being concentrated on increasing the numbers of overseas investors. "We could very easily complete the membership in Scotland and the rest of the UK. We do want more UK investors, but part of the ethos of the project is the ‘pilgrimage’ aspect of people coming from abroad to see this return to the true heritage of scotch whisky." The club has about 50 overseas members, mainly among expat communities. It is aiming for a total of between 700 and 800 investors with a maximum limit of 1,250. The distillery, which will have the smallest production of any in Scotland, markets itself as being a return to the origins of distilling - carried out by farmers to convert surplus crops into spirits. It will also feature a whisky school running courses on production and tasting. The malting vessels to be used by the distillery are being built by fabricators McMillan of Prestonpans, and are believed to be the first farm-scale vessels for distilling built in Scotland for at least a century. The company is the second new Scots whisky venture to attract money from private investors this year. Blackwood Distillers, which is planning to build a new distillery on Shetland, staged a share issue and has been awarded a Highlands and Islands Enterprise grant to help fund the project. The planned distillery could produce 40,000 cases annually of premium single malt, in peated and unpeated versions, and a variety of wood finishes. As a return on investment is not expected in the short term, the company intends to provide a whisky dividend to investors who participate in its share offer at the rate of one bottle per annum per 500 offer shares subscribed. Articles Courtesy of The Scotsman scotsman.com 05 Oct 2003 Are you inspired to vote? For the sixth year Scotland on Sunday has joined forces with Glenfiddich, the world’s premier single malt Scotch whisky, to give you the chance to vote in the Glenfiddich Spirit of Scotland Awards®. This unique awards scheme recognises the individuals who inspire our nation, leading the way in Scottish culture from food, music and screen to art, business, writing and sport. Last year readers cast their votes by the thousand. This year, there is even more reason to have your say, since, for the first time, you will be able to enjoy the actual awards ceremony when the event is broadcast by Scottish and Grampian Television on Saint Andrew’s night. Last week we profiled the contenders in the worlds of sport and food. This week it’s business and art, to be followed over the next couple of weeks by nominees in music, screen and writing. The nominees have been suggested by our judging panel but it’s up to you to decide who should win. In the final week, you can vote for the Top Scot Award, an open category where you can choose the Scot from any walk of life whom you believe has made the greatest impact in furthering Scotland’s reputation at home and abroad this year. Judges The judging panel for the Glenfiddich Spirit of Scotland Awards includes: John McGurk (editorial director, Scotsman Publications), John McLellan (editor, Scotland on Sunday), Iain Martin (editor, The Scotsman), Sally Gordon (Glenfiddich), Sandy Ross (Scottish Television) and a number of specialist correspondents. Articles Courtesy of The Scotsman scotsman.com