There has been a 42% jump in sales volume for Scotch Leader Whisky over the last 12-month period, new figures show.
The company's latest results (January 07 – January 08) have shown the brand has specifically increased its presence in the Scottish on-trade sector.
It is now the third biggest-selling whisky in he Scottish on-trade and the fourth biggest overall in the UK, thanks in part to a successful advertising campaign for three high profile Scottish football clubs.
The company recently signed a deal with Celtic, Heart of Midlothian and Rangers Football Clubs, which was accompanied by a new advertising campaign in April depicting the whisky's Deanston distillery and its staff members.
Marco Di Ciacca, Scottish Leader brand manager, said: “The UK whisky trade is a tough environment at the moment and, following the latest Budget, it's certainly not going to get any easier.
“However, we remain very positive and still believe there is tremendous scope for further volume gains.”
“We are one of the few brands investing in UK activity.” Di Ciacca concluded.
The Scotch Whisky Experience, the visitor attraction situated on Edinburgh's Royal Mile, is to undergo a £2 million expansion.
The revamp is likely to include a £1 million overhaul of the existing barrel ride, an indoor audio-guided ride that leads visitors through 300 years of whisky making, with smells and sound effects to demonstrate how Scotland's national drink is made.
The ride forms part of the Whisky Tour, which will also be re-developed to include more interactive exhibits and an expanded audio tour commentary, which will be available in 15 languages.
Other plans incorporate a new vault-style room, which will showcase the largest whisky collection in the world. London-based drinks company Diageo is currently finalising the purchase of the 3,384 bottle collection, owned by Brazilian collector Claive Vidiz. It will include a rare Bells decanter, which was released to celebrate the marriage of Prince Charles and Diana, Princess of Wales.
Lastly, it has been announced that the first floor will see the addition of a traditional whisky bar and a contemporary whisky cocktail bar to maximise the area's panoramic views across the city.
Construction is expected to begin in October and the attraction is likely to re-open in March 2009.
Valued employee becomes the world’s longest-serving maltmaster
A NEW single malt Scotch whisky has been launched to celebrate the dedication of a Moray distillery employee, who is the world’s longest-serving maltmaster.
Dufftown-based Balvenie Distillery marked 63-year-old David Stewart’s 45th year in the industry with The Balvenie Signature, a new hand-crafted 12-year-old single malt.
It is considered to be Mr Stewart’s signature creation and is a combination of 12-year-old single malt Scotch whisky matured in three cask types.
Mr Stewart said: “It has given me great pleasure to create a signature whisky as part of the Balvenie range.
“Maturing and marrying the finest single malt Scotch whisky has been my passion for over 45 years and it’s an honour to mark the moment with an addition to the Balvenie family.”
To celebrate the occasion, the company is commissioning an exhibition of works handcrafted in Britain by businesses and individuals including Barbours, Scottish silversmith Marion Kane, and Suffolk woodcarver Paul Jewby. The exhibition will be launched in the autumn.
VISITOR figures for this year’s Spirit of Speyside Whisky Festival are expected to outstrip last year’s record after visitors flocked to Moray at the weekend.
Celebrations will conclude later today following five days of more than 200 events including whisky tasting, distillery tours and exhibitions.
Festival organisers catered for families as well as whisky enthusiasts with face painting and games at Benromach family fun day yesterday afternoon, and Rothes’ annual gala moved from its usual June slot to begin on Saturday.
Last year the festival attracted about 16,000 visitors and generated £600,000 for the local economy.
Official visitor figures for this year’s event are not available yet but event co-ordinator Ros Lewis said that online bookings for festival events were a pretty good indicator.
She said: “I would say it’s busier than last year. We’ve invested in market research again this year and we’ve got people going round with clipboards and there are questionnaires as well, so that’ll give us an idea.
“Bookings for festival events this year are up so that’s always a good sign. The majority of events are booked online so we get a pretty good idea of what’s working and what’s not working.”
More than 340 attended the festival opening dinner at Glen Grant Distillery in Rothes on Thursday.
Scotland’s First Minister Alex Salmond was due to attend and deliver the keynote speech, but was forced to pull out due to illness.
Local MSP Richard Lochhead stepped in to address the audience and announce the winners of the Spirit of Speyside Whisky Awards, who were chosen by members of the public.
Events lined up for the final day of celebrations today include tours to Dufftown, to one of the youngest distilleries Glenallachie near Aberlour, Glenfarclas, and Glen Moray distilleries, and there will be expeditions to the Braes of Glenlivet to take part in the Whisky Smugglers’ Experience.
The festival concludes tonight with The Dreg’s Party at The Whisky Shop in Dufftown, where visitors can sample the last of the festival’s produce from the waters of Speyside.
The winners of the Spirit of Speyside Whisky Awards were:
Five-star speyside attraction opens as whisky festival gets under way
A NEW £500,000 visitor centre at one of Speyside’s biggest distilleries opened its doors yesterday.
Glen Grant Distillery’s new attraction, at its Forres base, is the third visitor centre to be built onsite.
Visit-Scotland chief executive Philip Riddle said: “Whisky trails fulfil a very important market in Scottish tourism, particularly in terms of our international visitors, and I’m confident that investment such as this world-class visitor centre will not only add to the trail experience in Moray but also improve and help the tourism industry realise its ambitious growth tar-get.”
Distillery owners Gruppo Campari spent the money over two years converting the building into a five-star visitor attraction.
The site was initially used as a coach house and stables between 1887 and 1931, and later as accommodation for distillery employees and their families.
The next stage of development at the distillery will see the former visitor centre converted into a coffee shop.
The opening of the visitor centre was timed to coincide with the start of the Spirit of Speyside Whisky Festival yesterday.
First Minister Alex Salmond was forced to pull out of last night’s opening festival dinner at the due to illness.
A stomach bug caused Mr Salmond to cancel all his engagements, including the dinner event at Glen Grant Distillery at Rothes, where he had been due to deliver the keynote speech to 300 guests.
Mr Salmond was also due to announce the winners of the annual 2008 Spirit of Speyside Whisky Awards, which were judged by the public earlier in the day.
Festival event co-ordinator Ros Lewis said: “It’s very disappointing that he had to pull out but it can’t be helped.
“Hopefully he will be able to attend another year.
“We were fully booked up with guests by the end of February, before it was announced that Mr Salmond would be attending, so that is encouraging.”
The opening dinner marked the beginning of the 9th annual Spirit of Speyside Whisky Festival, when guests are served dishes made by the winner of the Spirit of Speyside Chef of the Year competition. This year’s title was won by Addy Daggert, chef of the Muckrach Lodge Hotel and Restaurant at Dulnain Bridge.
Each dish is matched with one of Speyside’s malt whiskies.
Exports value soars to £2.8bn as global demand increases
Golden news for whisky sales
Soaring global demand for Scotch whisky has sent the total value of annual sales rocketing to a record £2.8billion, new figures showed yesterday.
The Scotch Whisky Association industry body said the value of exports last year was 14% higher than in 2006, with the equivalent of more than 1billion bottles of Scotland’s national drink being shipped overseas.
Growth was seen for both blended and malt whiskies, with the US leading the way in export sales.
Total sales of blended Scotch in overseas markets broke the £2billion barrier for the first time, increasing 15% from 2006, while demand for malts sent their global sales up 11% to £454million.
Sales of all brands to North America increased by 5.5% to £482million, with good performances also being seen in Africa, Asia, central America and South America.
Exports to European Union markets leapt by 27% to £1.1billion, with Germany, Spain and Greece showing particularly strong growth.
SWA chairman Paul Walsh said: “This record export performance, generating £90 every second for the UK balance of trade, underscores just how important Scotch whisky is to our economy.
“This is all the more impressive given the economic difficulties encountered in certain markets during the second half of 2007 and demonstrates that Scotch whisky’s international appeal can mitigate against individual market or regional fluctuations.”
Mr Walsh added: “Distillers continue to watch market developments carefully, but the trends remain positive.”
Singapore became Scotch whisky’s fourth-largest export market by value last year, with total sales to the country surging 84% to £158.1million.
Much of that whisky was bound for China, where drinkers have acquired a taste for Scotch mixed with green tea.
Soaring global demand for Scotland’s national drink has led to a number of distilleries either being expanded or going back into full-scale production.
Glenglassaugh Distillery, near Portsoy, is to go back into production later this year after being mothballed since 1986.
Its re-opening will create up to 20 jobs and follows its acquisition from Edrington Group by a Dutch invest-ment consortium, Scaent Group, for £5million in March.
Edrington is building warehouses and bringing a stillhouse at The Macallan distillery on Speyside, mothballed in the early 1990s, back into service in a £40million investment.
Chivas Brothers is re-opening its mothballed Braeval Distillery and extending its Glenlivet production plant, while drinks giant Diageo is currently building a £40million whisky plant which is to be Scotland’s first major distillery for more than three decades at Roseisle in Moray.
Last year, Bacardi announced it was pouring more than £120million into expanding its Scotch business, and there are long-running plans from Blackwood Distillers Holdings to build Shetland’s first whisky distillery.
Just yesterday, Enterprise Minister Jim Mather revealed that whisky production at a disused distillery in Dumfries and Galloway was to be revived for the first time in 90 years.
Traffic chaos as tanker topples over spilling whisky on road
Traffic was severely disrupted in the west end of Glasgow last night after a heavy goods vehicle carrying 15,000 litres of whisky in dozens of casks crashed shortly after leaving the Clyde Tunnel.
The east-bound carriageway of the Clydeside Expressway was closed for several hours after the vehicle toppled over as it left a slip-road at the Broomhill-Whiteinch interchange at Partick just after 6.30pm.
Three fire appliances, an ambulance and several police vehicles attended the scene. A spokesman for Strathclyde Fire and Rescue Service said foam was used to treat some spillage of whisky.
The tanker driver was treated for a head injury before being taken by ambulance to the city's Southern General Hospital. His injury was not believed to be life-threatening.
The whisky casks were being transported by a private haulage firm on behalf of Chivas Bros from its site in Dalmuir to Mulben in Speyside.
As the lorry lost its balance, the spirit that it was carrying flooded across the road, leaving firefighters the task of mopping it up.
Exports of Scotch whisky reached record levels last year, according to figures from an industry body.
The Scotch Whisky Association (SWA) said the value of exports reached a new high of £2.8bn, earning £90 every second for the UK balance of trade.
The value of exports to India rose by 36% to £33m, while exports to the European Union went up by 27%.
The SWA said export volume was also up, with the equivalent of 1,135 million bottles of Scotch whisky exported.
SWA chairman, Paul Walsh, said the performance "underscores just how important Scotch Whisky is to our economy."
He added: "This is all the more impressive given the economic difficulties encountered in certain markets during the second half of 2007."
Top ten export markets in 2007 by value
USA £419.2m
Spain £307.5m
France £294.2m
Singapore £158.1m
South Korea £139.3m
Greece £103.5m
Germany £96.3m
South Africa £90.9m
Taiwan £81.8m
Portugal £48.3m
The SWA figures are derived from HM Revenue and Customs data and are based on individual company declarations of the export value and volume of shipments.
Like English wine, it has suffered from the taint of inauthenticity and has been the butt of condescending jokes. Now Japanese whisky has finally scotched all criticism by being voted the best in the world, ahead of its Highland rivals.
Yoichi 20 years old, distilled on the shores of the Sea of Japan, has become the first variety produced outside Scotland to win the coveted single malt award in an international competition run by Whisky Magazine, the main industry publication.
The whisky, distilled near the city of Sapporo on the northern Japanese island of Hokkaido, beat dozens of other varieties, including last year’s winner, Talisker 18 years old, produced on the Isle of Skye.
Suntory Hibiki, the brand advertised by the washed-up actor played by Bill Murray in the film Lost in Translation, scooped the award for the world’s best blended whisky. The historic double for Japanese whiskies has provoked consternation in Scotland, where whisky is as integral to a certain strand of national identity as bagpipes, haggis and the kilt.
Yoichi 20 years old, which sells for £150 a bottle, was praised by the judges for its “amazing mix of big smoke and sweet blackcurrant”, “explosive aroma” and “big, long and sweet finish”.
The decision to give the top prize to Yoichi followed a blind tasting of more than 200 of the world’s finest varieties by a panel of 16 of the world’s leading whisky experts.
The judges said Japanese distillers had succeeded in producing top Scotch thanks to the variable climate in Japan, which assists maturation and creates a purer whisky with a heightened aroma.
Traditional distilling apparatus such as coal-fired pot stills, used widely in Japan but rarely seen in Scotland, was also praised for producing a superior dram.
“Japanese whiskies performed magnificently and they are really starting to make waves,” said Rob Allanson, editor of Whisky Magazine.
Nikka, the company that produces Yoichi, and Suntory, the biggest spirits company in Japan, are making inroads into the British whisky market.
Tetsuji Hisamitsu, chief blender at the Yoichi distillery, said he was “very moved” by the award.
Inver House Distillers’ earnings hit £3.798m after sales surge more than 50%
Inver House Distillers, whose key single malt whisky brands include Old Pulteney, Balblair, Speyburn and anCnoc, released results for 2007 yesterday which show pre-tax profits more than doubled.
The results also show a 52% increase in turnover, confirming the distiller – recently named International Distiller of the Year – continued to grow strongly throughout 2007.
Inver House Distillers, which has headquarters near Airdrie and five distilleries (Pulteney, Balblair, Speyburn, Knockdhu and Balmenach), distributes products in 85 countries worldwide.
Last September it won the Icons of Whisky Scottish Distiller of the Year Award, beating competition from Glenmorangie, Bowmore and William Grant and Sons. This then allowed Inver House to be considered for the International Distiller of the Year title, which it won over seven other global finalists.
The significant marketing investment that Inver House has put behind its brands has also been pivotal in its recent growth. Marketing investment in its core single malt portfolio has been increased by 15%, with investment behind the malt portfolio now amounting to nearly 30% of the revenue from single malt sales.
Inver House managing director Graham Stevenson said: “Our 2007 results show continued positive growth, with a very significant upwards shift in pre-tax profits from 2006. This success has been driven in part by ongoing expansion into growing international markets, as well as continued brand extensions and the marketing support that we have put behind our key malt whisky products.
“We are both determined and focused within our key markets. For example, our Speyburn brand is now the number six single malt whisky in the US, which is the world’s largest market.
“Our blended whisky brands have also performed well. We fully expect to continue this growth trajectory in 2008, driven by ambitious plans to further develop our overseas markets, both in Europe and worldwide.”
The firm reported pre-tax profits of £3.798million for 2007, up from £1.828million the year before. Turnover was £57.824million against £38.054million in 2006.
The FBI and the US Customs and Borders Protection Unit are still probing the whereabouts of $240,000 (£120,000) of whisky posted missing after leaving Glasgow on its way to Los Angeles.
Ten months after the 31 cases of a 32-year-old cask of Highland Park Single Cask whisky, a Budget-day favourite of former Tory Chancellor Norman Lamont, went astray its intended recipients are still in dispute with a major airline as to where the consignment has gone.
Beverly Hills-based spirits distributor Saybrex International says the 186 bottles travelled safely from the Edrington Group's HQ to a bonded warehouse at Glasgow Airport and on to Edinburgh for the Delta Airlines flight to Atlanta and HM Customs are adamant the goods left Scotland.
But somewhere between the tarmac at Edinburgh Airport, Atlanta and the connecting flight to LA the "phantom cask" has gone missing.
Despite having had the prepaid tax refunded to him, Saybrex chief Ari Bussel insists no agency had confirmation from Delta that the shipment has been lost.
He said: "This single cask was either left behind while in Delta's custody and control or was stolen while in Delta's possession.
"If the theft was done without knowledge of the true nature and value of the goods, someone may be enjoying a very unique toast, without even realising it. If, on the other hand, the goods were stolen because of it being a rare, very high-value single-cask bottling, the bottles may one day appear in the marketplace, either sold to specialty retailers or offered on the web."
A Delta spokesman said: "We are investigating the details of this incident and working with the customer to reach a resolution."
Experimenting with flavours and natural additives may help Scotch whisky to attract younger consumers, United Spirits boss Dr Vijay Mallya says.
Scotch whisky producers must be more innovative if they are to compete with other spirits for younger consumers’ money, Mallya told last week’s World Whiskies Conference in Glasgow.
“I'm not suggesting radical changes, but maybe natural additives could be used to make it more exciting for this young target market,” said the Indian billionaire, who last year bought Whyte & Mackay for almost £600m.
“There is a trend towards different-tasting products and Scotch is losing out to categories such as vodka, growing at 30 per cent, and wines, growing at 50 per cent.”
Commenting on India, viewed as a promising emerging market for Scotch, Mallya said there were 500m people under 25 years old.
“This exceeds the entire population of Europe or the US. Therefore these are the people we should be targeting - the young and upwardly mobile young Indians.”
Many conference guests dismissed the idea of putting additives in Scotch.
But some agreed that Scotch “is not an easy drink for young people to accept”. Others suggested whisky could be promoted to younger drinkers using cocktails, also containing natural flavours such as apple and ginger.
Meet the Indian bling king of Scotch whisky industry
Flamboyant Indian Playboy Stirs Things Up With Whisky's Old Guard
HE flew into Scotland by private jet from New York, dripping in diamonds and designer bling and caused a conference of stuffy whisky buffs to choke on their drams.
Then Indian billionaire Dr Vijay Mallya, the flamboyant new owner of Whyte & Mackay whisky, triumphantly got back on his Airbus 319 and flew to Bombay to catch a cricket match.
"When you've spent $111million on the team you want to see their opening game," the 52-year-old told the Sunday Mail, as if he was off to get a minibus to the local sports ground.
"I would fly myself back - I often fly my own plane - but it's nine-and-a-half hours and I'd rather sleep."
He means on his kingsize bed with the full-width seatbelt that goes right across his sleeping body so the stewardesses do not ever have to wake him up.
Dr Mallya to his staff - and VJ to only his closest pals - has rattled more than a few ice cubes in the tartan-and-slippers world of Scotch whisky since his controversial £595million takeover of one of our most historic brands last May.
And when he paid a whistle-stop visit to Glasgow last week, the man who calls himself the Indian Richard Branson proved he has no intention of being a low-profile boss after a year in charge.
He has diamond studs the size of £1 coins in his ears, jewel-encrusted gold rings, a dazzling watch on one wrist and a bracelet carrying the inch-high diamond monogram, VJM, on the other. Even the legs of his specs have diamonds.
Mallya's enormous business empire has made him one of the richest men in the world - with a fortune estimated at £6billion - and he sees no need to be modest about it.
Sipping on a rare 40-year-old Whyte & Mackay blend, at £499 a bottle, he said: "They've called me the 'King of Good Times' for years.
"First I was known as a playboy. Then, as the business became more and more successful they thought they had better give me some credit, so spoke of what they consider to be my flamboyance.
"I can't help it if someone thinks that's a big deal but I just live the way I live and do the things I like to do. I don't buy things or wear particular things to impress people. I'm just being myself.
"I work hard and I play hard - that's my mantra. I spend my own money and if others are jealous and want to comment on it, too bad."
Playing hard means enjoying his racehorses, super-yachts, any one of 26 homes, planes, a helicopter and a breathtaking art collection including works by Picasso, Renoir and Turner.
He owns two football clubs in India, a cricket club and has just bought a racing team, Force India Formula One.
He said: "My mother told me that the first word I ever uttered was car, not mum or dad. Racing is a passion."
And then there's his Scottish castle, Keillour Castle in Perthshire.
He said: "I bought the castle 20 years ago. I have a wonderful time there and I still go up as often as I can.
"I bought in the east of Scotland because I was told that for every mile west you go, you get an inch more rain.
"My Indian friends love going to the whisky trail when they visit and my home is equidistant from Gleneagles and St Andrews so the golf is good."
And all the while his business interests keep making money. His Indiabased UB Group includes best-selling Indian brand Kingfisher beer and United Spirits, the third largest spirits business in the world.
His Kingfisher Airlines, launched just three years ago, now boasts 82 jets and is the Indian market leader.
In typical Mallya style, he handpicks every air hostess he hires.
He said: "Glamour is my middle name, according to the media. But glamour is part and parcel of showbiz, which is necessary when you build brands as part of a lifestyle."
So he travels the world, seamlessly mixing business with pleasure. His wife Rekha is in San Francisco with their daughters Leana, 14, and Tanya, 12.
At first he traditionalists at the Scotch Whisky Association (SWA) were not chuffed by Mallya's invasion.
But his control of the massive whisky market in India - where Scotch sales increased by 37 per cent last year - has forced his critics to listen.
He said: "I told the World Whiskies Conference that we need to concentrate on making whisky far more trendy and appealing to the younger generation.
"Scotch is regarded as a middle-aged drink. We need to give it more universal appeal. That's what we're doing with our brands, making them more contemporary and putting fun into it.
"The SWA were not very friendly towards me initially but I think they are realising it's better to do business with me than to be antagonistic towards me.
"Scottish people in general have been very friendly.
"I see no problem with an Indian owning a Scotch company. It's been well received in India. People are proud."
Mallya grew up in Bangalore in south India and was groomed from childhood to take over the family drinks empire.
But he had earned a reputation as a playboy by the time his father Vittal died suddenly of a heart attack in 1983, leaving him to take control aged just 26.
He said: "I was sick of everyone calling me a rich kid who would blow his dad's money. I bought a paint company in England and made Û70million when I sold it eight years later.
"I told my mum, 'I'm going to buy a yacht, I'm going to buy a plane, I'm going to buy some cars and don't you ever say that I blew my father's money because I made it myself.'"
The company his dad left shifted 2.8 million cases of spirits every year.
Last year, UB Spirits division sold 75 million cases. Mallya's son Sidhartha, 21, will have big shoes to fill.
At his top-floor office in Whyte & Mackay's Glasgow HQ, Mallya calls for another dram before agreeing to finally see the business associate who has been waiting six hours for a meeting.
"My favourite whisky depends on my mood," he said, taking a drink from a 1973 Dalmore, at £399 a bottle.
"But my father used to drink a malt called Isle of Jura. I remember hearing the name 40 years ago. It was his favourite whisky and now it's part of the Whyte & Mackay business. We've come full circle. I hope he would be proud."
Rise and rise of drinks billionaire
Vijay Mallya was born in 1955 in Bangalore and educated at Calcutta University.
He took control of his father's company, United Breweries Group, in 1983.
Forbes list of world billionaires ranks him as the 962nd richest person in the world.
He throws extravagant parties on his Indian Empress yacht, formerly owned by Liz Taylor.
He has set up a hospital, school and research centre in his home town of Bangalore.
The first Indian to own a Formula One team, he will launch the Indian Grand Prix in 2010.
'The Scotch Whisky Association were not very friendly initially..but they are realising it's better to do business with me than to be antagonistic towards me'
Scotch Whisky 'unaffected' by global credit crunch
Scotch Whisky Association set to reveal “impressive export growth for Scotch Whisky in the coming months, Paul Walsh said.
In his first major speech as the chairman of the Scotch Whisky Association, Diageo chief Paul Walsh told delegates at the World Whiskies Conference: “At the moment we are not seeing any major reaction in our markets to developments in the banking sector.
“When industry figures for 2007 are announced, I would expect them to reveal continued impressive export growth for Scotch Whisky, despite the well documented credit crunch of the second half of the year and the early part of 2008.”
He warned the whisky industry, however, not to get complacent as consumers may have had a “delayed reaction” reacting to events. "We cannot rule that out," he said.
“My own feeling is that the significant markets in which we operate are no longer as tightly wired to events in the United States as once they were.
“I've also said before that premium spirit drinks are an 'affordable luxury' for consumers and the trends at present appear to bear this out.
“It also perhaps demonstrates that the international spread of Scotch whisky with exports in nearly two hundred markets also helps to mitigate against individual market or regional fluctuations.”
Walsh said the SWA estimates that over £400million capital investment was announced in 2007 on new distilling, bottling and warehousing capacity which is scheduled to come on-stream over the next three years
Scotch exports rose 4 to nearly £2.5billion in 2007, despite ongoing disputes over import tariffs in several emerging markets.
However, the industry continues to face some 450 barriers to trade in its markets around the world including from undue restrictions on marketing and promotions.
Walsh said the SWA is currently seeking to secure better legal protection for Scotch whisky in China, Russia and other emerging markets.
It is also hopeful of securing a positive outcome at the World Trade Organisation Doha trade talks.
He also warned India that it would return to the WTO to secure fair market share access in line with international trade rules if it failed to provide a level playing field at state level.
SWA head Paul Walsh urges Scotch whisky industry to go 'green'
The Scottish Whisky Association (SWA) is urging the industry to embrace social responsibility and not to “tick boxes”
Speaking at the World Whiskies Conference in Glasgow this week, Paul Walsh, chair of the SWA, said: "Investors are looking for companies to be successful and profitable but to do so in a sustainable way."
They want companies to "drive long-term value for them and mitigate risk,” he said.
“In my view an astute modern business should not treat responsible behaviour as a tick-box process or a marketing exercise. Rather it is a driver of long-term growth – an essential component for a company's all round success.
“It makes strong business sense by driving efficiencies and of course it allows us to engage with consumers who increasingly and rightly scrutinise a company's green credentials,” he said.
Walsh said the impact of the a world of “finite” resources was already pushing companies to go green.
“Cereal costs have doubled, energy and other input costs are increasing and we face cost pressures in relation to glass, casks and packaging. Copper prices have spiralled due to increased demand from China,” he said.
The SWA is due to release its environmental and sustainable review of the industry with certain targets it wants its members to meet, in a “few months” time.
Paul Walsh, chief executive officer of Diageo, will make his first ever speech as chairman of the Scotch Whisky Association (SWA) later today (April 15).
Talking at this week's World Whiskies Conference, which is being held in Glasgow, his speech will focus on fair access to export markets, CSR and promoting sustainability in the industry.
He will announce: “There is tremendous optimism across the industry at present, with a range of trends pointing towards future sustainable growth and a renaissance for Scotch Whisky internationally.
“The exciting opportunity for the industry is that growth is being seen in markets all across the world, from Russia to Vietnam, China to South Africa.”
Walsh will also voice his support for the controversial government proposals for Scotch Whisky regulation and labeling, which he believes “will grow consumer understanding of the products worldwide”.
The whisky industry has been split by a row over a new classification that critics claim will "dumb down" the product and threaten the future of Scotland's most famous export.
One distiller said yesterday that the move could lead to distillery closures and undermine the credibility of the country's renowned single malts.
The row has been caused by the Scotch Whisky Association's plans to introduce a "blended malt" category to describe Scotch made of malts from different distilleries.
This would replace the traditional term vatted malt, and, according to critics, will confuse consumers by combining the description of the two main types of Scotch - blended whisky and single malt whisky.
Around 1,000 people have signed a petition opposing the move, and some in the industry warn of a scenario where whisky follows the route of sherry and cognac, becoming homogenised and dominated by a few brands.
However, the SWA insisted the move was supported by the majority of the industry and that research proved the change would not confuse consumers.
According to Mark Reynier, of Bruichladdich distillery on Islay, the new category is designed to support the interests of the drinks giants Diageo and Pernod Ricard, which dominate the industry.
Blends, made from malt and grain whisky, are characterised by large volumes with poor profit margins, while single malts, associated with one distillery, are highly profitable but the stock is limited.
Mr Reynier fears that the big firms will exploit the new category because they can produce it in bigger volumes at the potential expense of single malts.
He added that consumers could be confused by labelling into thinking they were getting a single malt from a specific distillery and find it was "just an inferior malt whisky cocktail".
Jim Murray, author of Jim Murray's Whisky Bible, said the SWA was in danger of making the biggest mistake seen in the industry for 100 years. Speaking from America yesterday, he said the new category was causing confusion around the world.
He added: "We are now in a situation where we are using the word 'blend' with 'malt'. A group of faceless office bods have declared that a blend can be 100 per cent malt whisky and people around the world haven't got a bloody clue. It is boom time for the industry but this is totally confusing and it has to be stopped."
John Glaser, of the specialist Scotch whisky maker Compass Box, said the move was bad for business and has drawn up a petition to present to the Government. The proposal from the SWA is part of a raft of regulations - including popular moves to protect whisky regions and target couterfeiters - that have been passed to Defra.
They are expected to become law this summer in a move that will enshrine the definitions of Scotch.
The choice of a definitive term follows a row five years ago after Diageo produced a blended version of its Cardhu single malt, with a similar label, and called it pure malt.
This was an attempt to cope with increased demand, but it caused uproar and was opposed by the William Grant group before the changes were withdrawn.
Mr Reynier said: "Having failed to bulldoze it through, Diageo said they would be back and now the SWA, dominated by Diageo and Pernod Ricard, are changing the laws to allow the same thing to occur legally. This suits their own commercial needs at the expense of Scotland's heritage. It will have far-reaching implications for Scotch whisky, its credibility and the future shape of the industry and survival of distilleries."
But the dire predictions were dismissed as "nonsense" by the SWA, which said the vast majority of the industry favoured the move and only a "vocal" small minority was against it.
David Williamson, for the association, said the blended malt term was chosen after lengthy discussion and was the only description that accurately described the product.
He also dismissed claims that a blended malt would be allowed to carry a distillery name or to look like an existing single malt.
He added: "Consumers understand that 'blending' means mixing and blending is generally understood as meaning more than one.
"A number of companies have, of course, already changed their labels to use the description Blended Malt Scotch Whisky and, encouragingly, there is no evidence to indicate any consumer confusion or resistance to the description.
"Any legislation introduced in the UK must of course also comply with EU law and under European legislation any combination of malt whiskies is defined as a blend.
"At the same time, the term vatted malt has almost solely been used within the trade and it is significant that hardly any labels at all have ever featured that description.
"Again, it was agreed the term would not be understood by the vast majority of consumers worldwide."
The noise is deafening at Diageo PLC's Abercrombie coppersmiths as skilled workers hammer away, molding 14 large bell-shaped stills destined for Scotland's first new whisky distillery in more than three decades.
A few miles down the road at Carsebridge, coopers are teaching the backbreaking traditional art of making oak casks to the first batch of apprentices in years as the company ramps up production to meet increasing demand from emerging markets such as China and India.
Clever marketing by Scotch distillers has encouraged a growing middle class in both those countries to use the prestige and heritage of the drink to reflect their newly affluent status. There is also a renewed appetite for the higher quality single-malt whisky from mature markets such as the United States.
Overseas sales of Scotch whisky rose 4 percent to an all-time high of 2.5 billion pounds in 2006, the latest available figures - equal to a whopping 25 percent of Britain's entire food and drink exports.
Industry experts say that strong growth continued through 2007 and into 2008, reversing a downturn in the drink's popularity at the end of the last century when its reputation as a tipple for the older gent saw it lose ground to white spirits like vodka and gin.
"Suddenly whisky is cool again," said Charles Allen, global brand director for Scotch whisky at Diageo, the maker of the world's two top brands by sales, Johnnie Walker and J&B.
Diageo is so sure that demand will continue to grow that it has unveiled plans to build a 40-million-pound distillery at Roseisle in northeast Scotland, part of a 100-million-pound expansion program that will see roughly 80 million pounds spent on expanding capacity in distilling, with the remainder dedicated to packaging and warehousing.
The whisky stills - 4.5-meter-high kettles that separate the alcohol from the fermenting mix of water and malted barley - being put together at Abercrombie will be moved into place later this year and the first production from Roseisle is slated for early next year.
A total of 500 million pounds of capital expenditure has been invested across the industry for 2008-09, according to the Scotch Whisky Association.
That funding is spread across Scotland, which has more than 60 old stone distilleries, such as Diageo's 200-year-old Blair Athol stillhouse in the town of Pitlochry, dotted across its Highlands and rolling southern hills.
As domestic sales of Scotch whisky stagnate, 90 percent is now exported with state-of-the-art bottling plants feeding the product directly overseas from the eastern Scotland port of Grangemouth.
Emerging markets
While there is continued growth in traditional markets such as the US and Europe, emerging markets such as China and India are generating the most buzz, said David Williamson, the spokesman for the association.
"It is certainly advantageous that in two of the world's largest and fastest growing economies, whisky consumption is either a well-established tradition - India _ or a marker of sophistication - China," said Jason Holway, an independent analyst at Zenith International.
"An aspiration to 'trading up' and drinking scotch whisky in each culture should bode well for the future of the industry," he added.
Scotch Whisky sales in China have jumped from just 1 million pounds in 2001 to US$1.1 billion in 2006, aided by the east Asian country's decision to cut its spirits tariff to just 10 percent from 65 percent after it joined the World Trade Organization in late 2001.
Exports to India, where tariffs remain relatively high at 150 percent but well below their previous levels of up to 550 percent, were valued at 24 million pounds in 2006, the most recent figures available.
Diageo's Johnnie Walker, the longtime market leader in the US and the world's No 1 brand by sales, is the clear winner so far thanks to the company's strong marketing push in China to sell the tipple as the world's No 1 party drink.
Sales of Johnnie Walker grew by 14 percent to more than 15 million cases last year, worth a total of US$1 billion.
Edrington Group Ltd., the maker of Famous Grouse and Macallan, is putting its faith in the growing popularity of single malt whiskies, investing millions of pounds to restart production at a dormant stillhouse that will increase output of Macallan single malt by more than 30 percent to more than 8 million liters per year.
"We are seeing some fantastic growth in Regal 25, a luxury blend that sells for around US$300 a bottle, while Diageo introduced its Johnnie Walker Blue Label King George V, which sells for US$500.
To classify for the prestigious label of Scotch, whisky must made at a distillery in Scotland and matured in an oak cask for at least three years.
That means an expensive and long startup process for new entrants like the tiny Kilchoman Distillery on Islay, an island off the west coast of the Scottish mainland.
Managing director Anthony Wills says the distillery's single malt, due for first release in June 2009, will be launched as a niche product aimed at the mature US, Japanese and European markets.
"The idea is to release small amounts on the market to create a limited edition product," he said.
The Scotch Whisky Association (SWA) has welcomed a Canadian Federal Court decision to refuse to register the 'Glen Breton' trademark, for a single malt whiskey produced in Canada.
The SWA had objected to the trademark arguing that use of the word 'Glen', which is widely used on Scotch Whisky, for whiskey produced in Canada, was confusing and misleading to consumers.
Evidence filed by the SWA included over thirty instances of 'Glen Breton' being mis-described in Canada as 'Scotch Whisky', with examples of confusion found in retail outlets, newspaper articles, pricelists, menus and websites.
The Canadian Federal Court found that “the trade is confused” by the trademark, that ' Glen Breton' was often listed in price lists and menus as “ single malt scotch” and that “the ultimate consumer who thought he or she was ordering a new Scottish single malt would never know that
something else was served”.
Glenfiddich, the William Grant & Sons-owned whisky brand, has handed its £2m direct marketing account to Kitcatt Nohr Alexander Shaw.
The appointment was made following a pitch which saw Partners Andrews Aldridge and Wunderman knocked out, leaving Kitcatt Nohr and WWAV Edinburgh in a final shoot-out. The pitch was handled by Glenfiddich’s in-house team.
The agency’s first task will be to develop a global customer relationship management (CRM) programme. The project will involve integrated media, with a heavy emphasis on digital elements.
In January 2007, Glenfiddich appointed Claydon Heeley to create a global customer relationship management programme. It is understood that Claydon Heeley was not invited to pitch for the new account.
Glenfiddich has also worked with Presky Maves.
Kitcatt Nohr Alexander Shaw’s customer relationship management campaign will focus on encouraging customers to try the whisky, and engendering loyalty.
Glenfiddich has historically used its marketing to overturn the negative reputation many customers have of the brand, that it is a ‘starter whisky’.
Finance secretary says global economic downturn may lie behind export dip
Scottish export sales fell towards the end of last year, according to official figures released yesterday.
Finance secretary John Swinney said the global economic downturn may lie behind the decrease.
He also took another swipe at Treasury plans for a whisky tax increase, with the drink industry a major casualty in the final quarter of 2007, according to the manufactured export sales estimates.
Despite a 2% drop in real terms in Scotland over these three months, there was an overall rise of 3% in 2007.
The drink sector saw a plunge of 8.1% over the three months. There were also falls in electrical and instrument engineering (2.2%), mechanical engineering (8.7%), contributing to an overall drop of 3.6% in engineering exports.
Over the year, engineering and drink were the main industries contributing to the annual growth in manufactured export sales with annual growth of 3.5% and 4.5% respectively. Chemicals and refined petroleum also grew, by 12.4%, over the last quarter of 2007 and growth was also seen in other manufacturing (6.8%), food and tobacco (3.2%) and wood, paper, publishing and printing (2.1%).
Mr Swinney said: “Although short-term trends like this are always likely to be volatile, the decrease in exports may point to the downturn in global economic conditions which began to take effect in the latter half of 2007.”
He said the cut in business rates and streamlined enterprise networks would mean more support for businesses, but added: “A dip in drink-industry exports – which returned to levels closer to trend after recent fluctuations – is one reason why the figures are down for the final quarter of 2007.
“That makes the chancellor’s decision to impose punitive tax rises on the whisky industry in particular even more frustrating. It gives licence to international competitors to raise tariffs on Scotch whisky at a time when crucial industries such as this need our support.”
CBI Scotland director Iain McMillan said: “The dip in fortunes in the final quarter highlights the fragility of the recovery in Scotland's export performance.”
A Scotland Office spokesman said Westminster would continue to support exporters, added that 90% of whisky was sold abroad. He said: “Not only will an increase in internal UK duty have no effect on these sales, but the government has recognised the importance of protecting this export success and is already working to legislate to protect those overseas markets.”
Firm hopes to toast ‘full-time profits’ at revamped distillery
The company responsible for rejuvenating the Tullibardine whisky distillery more than halved its losses in 2007 - leading to Doug Ross, a co-founder and director at the fledgling Perthshire business, saying it will push into "full-time" profit from next month.
"This has all been driven by the increased levels of demand for whisky in world markets, and we're catching the wave," Ross told The Herald yesterday.
"Since September, the distillery has increased production from two million litres a year to 2.7 million litres a year and has subsequently been distilling 24/7."
Tullibardine, based in the Perthshire village of Blackford, said it had recorded a loss of £318,000 for the year to the end of May, compared with £660,000 the year before.
Ross said: "We're working through a classic business start-up model - three years of losses and then trade profitably in the fourth year."
He added that sales of Tullibardine malt whisky, now available in 30 global markets, were particularly strong in Europe and Taiwan, and that US sales were also growing.
The company also recently launched its John Black range of blended malts in several export markets, and it plans a launch in UK later this year.
Tullibardine had been mothballed for a decade until it was rescued by a four-man consortium of entrepreneurs, including Ross, in 2003.
Founders Ross and Michael Beamish came up with the plan to buy the distillery in 1999 after meeting on a golf course, and later brought in Glasgow accountants Alastair Russell and Alan Williamson for their business acumen.
Backed by Barclays Bank, the quartet acquired Tullibardine for an undisclosed sum from Jim Beam Brands, now Whyte & Mackay, which had decommissioned the place in 1993 because of overcapacity.
Their plans for Tullibardine included a £10m combined whisky-retail tourism complex on the grounds of the old distillery, just off the A9.
The site, which boasts a flagship outlet of Baxters foods, was later offloaded to property developer Kenmore.
French liquor group Pernod Ricard SA is buying Vin & Sprit, the maker of Absolut vodka, for 55 billion kronor ($9.24 billion), the Swedish government said Monday.
The deal ends months of speculation over who would take over the state-owned liquor group, which is being sold by the government as part of a privatization effort.
"With the acquisition of V&S, Pernod Ricard becomes the world's co-leader in the wine and spirit industry," the French company said in a statement.
"Absolut, the world's premiere brand of premium vodka with some 11 million 9-liter boxes in 2007 is an iconic brand whose importance goes beyond the world of wines and spirits," the statement said.
The Swedish government said the French company, behind brands such as Chivas whisky and Mumm champagne, intends to keep Vin & Sprit based in Sweden.
It said the deal includes the whole company, except for Vin & Sprit's 10 percent share in U.S. spirits company Beam Global Spirits & Wine, which would be sold under a previous agreement with Beam shareholders.
"Pernod Ricard submitted an offer that on an overall assessment is the most attractive," the government said in a statement. "Pernod Ricard will be an excellent home for V&S. The board of V&S has expressed that they see significant industrial logic in the transaction."
The deal is to be completed during the summer.
Vin & Sprit was put up for sale last year as part of Sweden's broader plan to sell state assets to pay off the country's debt.
With its range of flavors from peach to blackcurrant, Absolut is the premium brand in Vin & Sprit's product range, which also includes Cruzan rum, Plymouth gin, a handful of Scandinavian aquavits and bitters and hundreds of wines.
Absolut is believed to represent roughly half of the company's sales of 10.35 billion kronor ($1.48 billion) in 2006.
As a result of the deal, Pernod Ricard said it would end its distribution agreement with another vodka brand, Stolichnaya.
Every spring when Malt Advocate Magazine hosts WhiskyFest Chicago, distillery managers and reps, connoisseurs and collectors from across the country and around the world travel here.
For this, the eighth such WhiskyFest, they'll gather April 4 at Hyatt Regency Chicago.
(For more information about WhiskyFest, tickets or a listing of speakers, etc., go to www.maltadvocate.com).
Can't make the April 4 event? No problem. There are enough whisky-related events around town to keep you busy, from a Kilted Pub Crawl sponsored by the Illinois St. Andrew Society to a couple Whiskies of the World seminars (at Delilah's and Binny's Beverage Depot) and a Whisky 101 at Sam's Wines & Spirits.
Each event offers opportunities to rub elbows with industry representatives, taste products, or introduce friends to whisky. In fact, Binny's South Loop Whiskies of the World event expects many of the exhibitors from WhiskyFest to be on hand and it will give attendees a chance to taste a wide array of whiskies for a modest fee.
"You have all the rock stars [of the whisky world] in a casual, conversational atmosphere." says Brett Pontoni of Binny's.
When trying to decide which events to attend, consider:
• Do I want to sample different types of whisky, or focus primarily on Scotch, bourbon or Irish whiskies?
• Am I expecting a full pairing meal, an event with substantial food, or a quick tasting with light food?
• How much time and money am I willing to commit to my whisky education?
• And, remember to plan which whiskies to taste in order of lightest to heaviest/peatiest so as not burn out your palate.
Booming whisky sales mean distillers are desperate to source stocks
A huge increase in the demand for grain by maltsters and distillers is being predicted.
Ian Keith, of merchants Frontier and chairman of the Agricultural Industries Confederation grain committee in Scotland, believes wheat purchases could increase by as much as 30% from the current 600,000 tonnes within three years.
He also forecasts malting barley consumption growing from 675,000 tonnes annually to as much as 750,000 tonnes.
The huge increases are the result of the boom in Scotch whisky sales and the worldwide growth in demand for white spirits such as gin and vodka.
Mr Keith said: “Distillers are all desperate to lay down stocks. Distilleries are going flat out."
While Scottish farmers should be able to supply the trade's requirements, Mr Keith said the lack of malting capacity may mean increased quantities of malted product being shipped into Scotland in the short term.
This follows the closure over the last seven years of maltings at Carnoustie, Kirkcaldy and Kirkliston because of the unprofitable nature of the business ahead of what has been an unexpected global demand surge that has seen profitability return.
The improved margins have already prompted investments in extra malt capacity at Buckie and Berwick. Diageo is also adding drier capacity at Roseisle, near Forres, to improve that facility's output.
Upwards of 100,000 tonnes of malting barley and malt has already been shipped into Scotland from Denmark. The downturn in demand for malt for beer production has also prompted English maltsters to switch supplies to the distillers.
They, however, appear to be purchasing Scottish grain as return loads to malt deliveries into Scotland.
The expectation for this year's harvest is for 16million tonnes, the highest since 2002 and the result of considerably more acres than normal being brought into grain production in the wake of prices more than doubling. The spring barley area in Scotland is expected to record a minimum 10% increase.
Mr Keith said Britain would be more than able to utilise the crop if it is realised as a new starch-making plant in Manchester required 15,000 tonnes of wheat a week. Planned biofuel developments at Hull and Teesside also needed supplies.
But there was a warning from Mr Keith that the availability of distillers’ dark grains, traditionally used in animal feeds, may become limited as a consortium of distillers are planning a new £24million heat and power plant at Rothes which will remove 650 tonnes of product a week from the market.
Scots spirit brands going from strength to strength
Drink giant Diageo sees no sign of a slowdown in worldwide demand for whisky
SOME of Scotland’s best known whisky brands are in a period of strong and sustained growth, according to bosses at alcoholic drink company Diageo.
Charles Allen, the group’s whisky portfolio global brand director, said there was no sign of any slowdown of soaring worldwide demand for Scotland’s national drink.
Flagship brands such as Johnnie Walker and J&B are leading the march for Diageo, he added.
Strong brand identities, clever marketing and the reputation of the products themselves are creating millions of new whisky drinkers around the world.
Johnnie Walker, a long-time market leader in the US, is winning over multitudes of new fans globally. Sales of the brand grew by 14% to more than 15million cases last year, worth a total £1billion, reinforcing its position as the world’s top selling Scotch.
Meanwhile, hip young Chinese are driving forward sales of J&B amid a strong marketing push to sell the brand as the world’s number one party drink. Spey Royal is leading Diageo’s expansion in Thailand, while a growing number of Latin American drinkers are acquiring a taste for Buchanan’s.
Rival drink group Pernod Ricard is seeing the same pattern of demand for its flagship brands, including Chivas Regal and Ballantine’s.
Mr Allen said Diageo had even seen a return to sales growth in Europe after a spell of decline, although he added that the UK was still a challenging market.
He said: “Suddenly whisky is cool again,” he said, adding he was still bullish about prospects in the UK despite it being a mature market.
Diageo is one of a number of whisky makers expanding their operations to meet global demand.
Bryan Donaghey, managing director for Diageo in Scotland, said the company was on course for first production from its £40million new distillery at Roseisle, near Elgin, early next year.
Roseisle is the first major new-build distillery north of the border in more than three decades.
Whisky industry says Darling sending out wrong tax message
SWA says it is time for the UK duty system to be overhauled
The whisky industry said yesterday that tax increases announced in last week’s Budget were already making the battle against foreign tax discrimination much harder.
The Scotch Whisky Association (SWA) said feedback from its member companies and overseas markets since last Wednesday had been one of concern that last week’s tax increases may undermine local efforts to secure fairer access to international markets.
Chancellor Alistair Darling upset the industry with the news that tax on Scotland’s national drink was going up by 59p per bottle, with more above-inflation increases to follow in subsequent years.
SWA chief executive Gavin Hewitt said yesterday the tax on whisky in the UK was now heading towards being the second highest in the European Union, behind Sweden, and one of the highest in the world.
He said: “The Budget decision will result in a 30%-plus tax rise by 2013. Not only does it abandon what had been important moves towards a fairer UK alcohol tax regime, but it entrenches and worsens existing discrimination against Scotch for the foreseeable future.”
The chief executive said whisky represented 12% of total Scottish exports (excluding oil and gas) and two-thirds of food and drink exports.
Whisky exports contribute £78 a second to the balance of trade and support more than 40,000 jobs across many Scottish communities.
Mr Hewitt said whisky was one of the few Scottish exports well placed to benefit from a rapidly globalising world; a product that cannot be outsourced, which must be made in Scotland, and which is considered a premium item by aspiring Indian, Chinese and Russian consumers.
He added: “We should be nurturing and promoting the competitiveness of such a successful industry. The UK tax environment is important to that process.”
The chief executive said the SWA regularly worked with the UK Government to tackle trade barriers that hold exports back. He said: “Last year’s duty reform in India was only possible through the close working of industry and government. New legislation this year will also help to protect Scotch whisky from unfair practices overseas. Such support is vital.”
Mr Hewitt said the Budget announcement had sent out a potentially damaging signal to export markets that large tax increases on whisky were justifiable and that discrimination was acceptable.
He added: “ If it is okay for the home government to do it, the argument goes, why shouldn’t we, especially if it helps to unfairly protect domestic producers from competition.
“And this is not just a hypothetical risk. It is something we regularly encounter.
“The SWA is currently tackling tax discrimination in some 40 countries, from Colombia to the Philippines.
“That work got much harder last Wednesday. The calls we have received from foreign journalists over the last seven days underscores how closely the UK Budget was being watched. Tax discrimination at home sends out the wrong message internationally. It is time for the UK duty system to be overhauled: all drinks should be taxed on the same basis according to alcohol content.”
Distilleries get together on £24m heat and power plant
Ambitious project would produce electricity from whisky by-products
Ambitious plans for a £24million biomass heat and power plant at Rothes in Moray have been unveiled by a consortium of whisky companies.
The Combination of Rothes Distillers (Cord) and Helius Energy plc are behind the proposal, which would see distillery co-products used to produce power.
If planning permission is granted, the plant would be the first in the world to use draff and pot ale as biomass fuel instead of wood.
Draff is the remnants of grain after fermentation, while pot ale is a high-protein residue from a still.
Burning these, the plant would be capable of generating 7.2 megawatts of electricity, most of it exported to the national grid.
Estimates suggest that using the distillery co-products would reduce carbon dioxide emissions by 46,642 tonnes compared to a coal-fired station.
A community heating scheme is being explored to encourage local take-up of the power.
The conversion of pot ale into an organic fertiliser for use by local farmers on crops such as barley would also be carried out.
The plant would be built within the existing Cord dark-grains processing facility at Rothes, which currently converts distillery co-products into animal feed.
If approved, the new operation would take over from the animal feed production and staffing levels are envisaged to remain the same.
Construction of the new plant would take between 18 and 24 months.
Cord’s general manager, Frank Burns, said all the stakeholders backed the “exciting vision”.
He said: “It has major benefits for the malt distilling industry on Speyside, will improve the long-term sustainability of Cord and help to meet local and national targets for renewable energy.
“It will also assist the Scotch whisky industry to sustain its future growth plans. From the work we have carried out, the concept appears very positive from an environmental, technical, and commercial perspective.”
A detailed feasibility study has been completed and Cord and Helius Energy have already conducted trials at the Rothes site that confirmed the use of draff as a long-term reliable fuel.
Mr Burns said planning proposals had been accompanied by a range of independent studies probing the potential effects of the project in the local area.
He said the scope of the studies had been agreed with planners, and demonstrated that the project would not have a significant adverse impact on the locality.
Moray MSP Richard Lochhead said it was a project that could “catapult Moray to the forefront of renewable technology”.
“There is also a clear knock-on effect from investment like this supporting other local industries and jobs,” he said.
FIRST Minister Alex Salmond is to deliver the keynote speech at the launch night of this year’s Spirit of Speyside Whisky Festival.
More than 300 guests will attend the event, to be held at the Glen Grant Distillery at Rothes on May 1.
Festival organisers have described the announcement as a “great boost” for this year’s event.
Event co-ordinator Ros Lewis said: “We are delighted and it’s a great boost to the festival. The dinner had actually sold out before the announcement was even made. We sold over 300 tickets, and I think that shows everybody is getting behind the festival.
“I think there are three things that the festival and the dinner combines, whisky, tourism and food.
“The dishes from our winning chef from the chef competition will be served at the dinner, which had to include some local produce from the Speyside area.
“All of these are things that the first minister is interested in for Scotland as a whole, and they all come together nicely at the dinner.”
Organisers also confirmed that chief executive of VisitScotland, Philip Riddle, would attend the dinner.
Mr Salmond will also announce the winners of the annual 2008 Spirit of Speyside Whisky Awards, which will be judged by members of the public.
Last year, the five-day festival attracted about 16,000 people into Speyside and Moray, generating almost £600,000 for the local economy.
Information on all festival events and activities can be found at www.spiritofspeyside.com
Economists say ‘excise rise likely to reduce consumer demand’
The Treasury last night flatly denied claims that figures from Chancellor Alistair Darling’s own department proved his tax increase on whisky was a sham.
Officials rejected the idea that their forecasts in Budget documents showed the 55p increase in the duty on a bottle of spirits – adding 59p to the price of whisky – would not net an extra penny in revenue.
A spokesman said tables showing receipts remaining at £2.3billion had been rounded down, masking their “cautious” internal forecast that the rise would net up to £100million a year.
Treasury sources were shocked at the ferocity of the industry’s reaction after consultations suggested that it accepted it had benefited from a 10-year tax freeze.
They said revenue would rise £400million this year and £500million next year, and spirits alone would provide 20% of the cash Mr Darling needed to take 250,000 children out of poverty.
Aberdeen South Labour MP Anne Begg said alcohol was cheaper than ever and had become a worse social scourge than illegal drugs.
Aberdeen North Labour MP Frank Doran said: “Customers will have to pay 59p more for a bottle of Scotch, but the point is not just the revenue. In my view it was necessary for health reasons.”
Scotch Whisky Association chief executive Gavin Hewitt said economists said an excise rise was likely to reduce demand and tax receipts.
“We believe a 9% tax rise in 2008, plus large tax rises every year to 2013, will have just such an effect.”
Moray SNP MP Angus Robertson said: “Alistair Darling’s raid on Scotch whisky represents the biggest tax hike for a generation.”
Gordon Liberal Democrat MP Malcolm Bruce pointed to the jobs that would be created by new distilleries planned for Huntly and Buckie and said the risk of damaging the market was “obviously unwelcome”.
Tory Highlands and Islands MSP Jamie McGrigor said it meant the tax burden on whisky would be 75% of the price.
A business leader warned yesterday that the extra 4p on a pint of beer will hit local pubs rather than tackle the UK’s binge-drinking crisis.
John Wright, chairman of the Federation of Small Businesses, said more needed to be done to stop shops and pubs going out of business.
And First Minister Alex Salmond yesterday told MSPs that Wednesday’s Budget would damage Scotland’s economy.
He hit out at proposed increases in fuel and whisky duty, taking a swipe at Labour leader Wendy Alexander over the latter measure.
“The UK Budget not only failed to mention Scotland once but managed to damage our economic interests,” he said during first minister’s questions yesterday.
“Oil revenues are propping up the UK finances to the tune of £56,000million expected over the next six years,” he added.
Orkney Lib Dem MSP Liam McArthur called on Mr Salmond to consider making representations about a lower fuel duty for remote and island areas.
The chancellor has defended the decision to raise duty on spirits, including whisky, for the first time in more than a decade.
Alistair Darling said the rise would help pay for measures to help children, families on low incomes and pensioners.
Distillers have attacked his "punitive" duty increase, which will add at least 59p to the cost of a bottle of whisky due to its higher alcohol content.
The chancellor has argued that a rise in domestic duty will not harm exports.
The Scottish Whisky Association said the rise, the biggest since 1991, means the UK Government has abandoned moves to a fairer alcohol tax policy.
But speaking to BBC Radio's Good Morning Scotland programme, the chancellor said very few sectors had enjoyed a 10-year duty freeze.
"I think the Scotch whisky industry is very important to Scotland, " he said.
"What is also important to Scotland is making sure that we get children out of poverty, that we help elderly people."
'Cash cow'
Mr Darling said the rise in duty on all alcohol had allowed him to increase child benefit, help families on lower incomes and increase winter fuel payment for pensioners.
Also speaking on the Good Morning Scotland programme, Finance Secretary John Swinney accused the chancellor of using Scotch whisky as a "cash cow" to raise funds.
Mr Swinney welcomed some of the increases in duty on alcohol which are aimed at tackling binge drinking.
But he said: "It's not whisky that is driving the binge drinking problem in our society, it's cheap cider, it's cheap beer.
"It's not the root of the problem we have and we now have the whisky industry at a real competitive disadvantage."
The Scotch Whisky Association (SWA) has said there is "no good reason" for a rise in duty, ahead of Chancellor Alistair Darling's first budget.
The industry is bracing itself for what could be the first rise on duty on spirits in 10 years, with reports it could increase by 30p a bottle.
The SWA said it should remain frozen to help towards a fairer alcohol system.
It is argued whisky continues to face a disadvantage in the UK, with a higher tax than wine and beer.
SWA spokesman David Williamson said: "Duty stability is supporting whisky industry competitiveness."
Mr Williamson said distillers were looking to invest to meet growing international demand, so would be keeping a keen eye on Wednesday's announcement.
He said: "The government has recognised the benefits of a fairer alcohol duty system in recent years and we see no good reason for that policy to change in 2008.
"The international evidence is clear that calls for higher duties to tackle alcohol misuse are simplistic and misplaced.
"We agree with the Treasury's long-held view that duty rises are not the way to tackle complex social issues around irresponsible drinking."
Whisky brand Cutty Sark is rolling out a global digital marketing strategy that includes the launch of a branded web portal and online ad campaigns in key international markets.
The brand, which is owned by Berry Bros & Rudd, has briefed Contented to create a global e-marketing platform to help it compete with rivals including Jameson and Johnnie Walker.
Cutty Sark wants to give the web a central role in its drive to establish a fresh brand identity. It is trying to move from being viewed as a traditional Scotch whisky brand to a 'nightclub' drink.
The global website, which will launch in May, will act as the hub of an integrated campaign intended to drive consumers online to interact with the brand via a range of lifestyle content that can be shared and personalised. The site will also feature product information and a detailed history of Cutty Sark.
Initially, Berry Brothers & Rudd plans to support the launch with a heavyweight online ad campaign and search-engine marketing activity aimed at affluent men aged between 25 and 55.
Contented is part of Eden State, the group created by the merger of Contented and planning agency Rise Communications. Cutty Sark appointed Rise to work on its communications strategy across international markets in August 2006.
Irish whiskey brand Jameson sponsors the recently revamped community website World's Best Bars. The site was reworked by Beechwood to include more user reviews, a cocktail mixer menu and a mapping facility to help travellers find good bars when abroad.
Spirits company First Drinks Brands has set is itself the ambitious target of making Grant's Family Reserve the number-three blended whisky in the UK by 2012, behind Bell's and The Famous Grouse but ahead of Teacher's Highland Cream.
Around £3.8m is being invested behind the family-owned Grant's Family Reserve in the UK in 2008, including new-look packaging that still retains the brand's familiar triangular-shaped bottle and press and poster advertising using the theme of “Try a different angle”.
Total UK sales of the brand are around 500,000 cases a year.
According to First Drinks Brands, its blended whisky brand enjoyed a bumper Christmas with sales up 20%, while nearest rival Teacher's declined by 8%.
The Checkout Nielsen survey into the biggest alcoholic drinks brands, published last summer, put the take-home value of Teachers at £60m and Grant's Family Reserve, which has been the number-four blend for many years, at £44m.
Chris Mason, managing director at First Drinks Brands, said Grant's was enjoying a “tremendous first quarter” in 2008.
But, he said, the brand would not be on UK TV screens this year.
The new-look packaging is currently moving through the supply chain and it should be on-shelf within a couple of weeks.
Fears whisky could be hit with first duty rise in a decade
Fears were yesterday growing in the whisky-producing heartland of Scotland that the country’s national drink could be hit with its first duty increase in a decade.
Speyside businesses said they were bracing themselves for Alistair Darling’s Budget announcement on Wednesday amid speculation that he would ignore pleas not to raise the tax on the spirit.
Billy Walker, owner of the BenRiach Distillery near Elgin, said it would be a “monumental error of judgment”.
He said the industry was striving to get other markets to equalise tax and any duty rise would send out the wrong signal.
Michael Urquhart, joint managing director of Elgin-based malt whisky specialist Gordon and MacPhail, said other countries take their lead from the UK.
He said: “Foreign countries look at how we tax whisky and the problem is that then they think that they should tax it heavily in their country. That makes it expensive in comparison to other spirits.”
Soaring demand for Scotch whisky around the world has led to mothballed distilleries in the north and north-east restarting production.
Widespread expansion is under way, and drinks giant Diageo is developing Scotland’s first major distillery in more than three decades at Roseisle.
Moray SNP MSP Richard Lochhead said a duty increase could dent growth.
He said: “At a time when the whisky industry is gaining confidence to invest in new distilleries and jobs in Moray, it could potentially pull the rug from beneath the industry’s feet if the UK Government and Gordon Brown were to launch a raid to help plug their financial hole.”
But a spokesman for Scottish Labour said the SNP was in a muddle, after Justice Secretary Kenny MacAskill, said last month he would like to increase the tax on alcohol in the fight against Scotland’s binge-drinking culture.
Mark Braidwood, who owns the Mash Tun Whisky Bar at Aberlour with his wife Karen, said he feared a rise would have a detrimental effect on trade.
A spokesman for the Scottish Whisky Association said it did not want to speculate on what might be in the chancellor’s statement.
But he said: “If what we are talking about is a duty rise to raise revenue, that would be counter-productive because the duty on Scots whisky, as treasury economists have agreed in the past, is already at, or indeed maybe above, its maximisation point.
“Any increase would actually lead to lower duty revenues for the exchequer.”
Leading brand developer, Malcolm Cowen, has been appointed as UK agent for award-winning Whisky producer, The Isle of Arran Distillery. Previously distributed by Cellar Trends, The Isle of Arran Distillery has appointed Malcolm Cowen to develop sales in key retail and on-trade channels. Malcolm Cowen will be responsible for building the profile of selected lines in the range, including: The Arran Malt 10 Year Old; The Arran Malt Wood Finish Series; The Arran Malt Single Cask Series; Lochranza Blend, Robert Burns Malt and Blend and Arran Gold Malt Whisky Cream Liqueur, with RRPs ranging from £13.99 to £39.99.
The Isle of Arran Distillery is one of the last remaining independent distilleries in Scotland. Based in the village of Lochranza on the Isle of Arran, which lies off the West coast of Scotland, the Distillery was opened in 1995 and remains the only Distillery on the island. Twelve different locations on Arran were tested before it was discovered that the water source at Lochranza was amongst the purest in Scotland. The Distillery only uses traditional methods, with wooden washbacks and bespoke copper stills, and unlike most other whisky companies, neither uses peat nor relies on caramel as a colouring agent. Arran Single Malts are also non-chill filtered to ensure that the natural flavour elements remain in the spirit and the original character is retained to ensure “the true spirit of nature”.
David John, sales director, commented: “we are delighted to be representing the Isle of Arran Distillery portfolio; the individuality and breadth of the range gives us a great opportunity to develop sales within this dynamic sector. The use of traditional methods and a non interventionist approach give these whiskies a really strong selling point for enthusiasts and connoisseurs.&r
