The Business of Whisky


Pleasure is Business

For most single malt enthusiasts, whisky is pleasure - pure pleasure. But for many Scots, whisky is business. In fact it's one of the biggest businesses in Scotland. Uisge beatha ranks fifth in export sales of manufactured goods after cars, aircraft, North Sea oil and derivatives, and high technology products. Exports are 90% of all sales and account of over £2 billion. The whisky industry employs about 12,000 people and procures over £2 billion in good and services in Scotland.

Not surprisingly, the country with the largest export in sales is the United States at £269.6 million in 1998. However, France imports the most quantities: 35.5 million liters. Apparently, the French prefer cheaper brands than Americans.

Graph of Whisky Exports As with any industry dependent upon exports, the whisky business is greatly concerned with excise duties and open international markets.

Based on alcohol content, whisky is taxed at a far higher rate than either beer or wine: 27.38p per 35ml as compared to 16.10p for beer (half pint) and 18.66p for wine (125ml.)

Whiskies are known by their frequently historic distilleries and their time-honored methods of production. Yet even the single malt whisky industry has seen mergers and buy-outs. In fact, one of the largest whisky corporations, United Distillers & Vintners (ER) Ltd., of Edinburgh owns over twenty-seven distilleries such as Cardhu, Cragganmore, Dalwhinnie, Lagavulin, Oban, Royal Lochnagar, and Talisker.

UK Duty on Alcohol Content Sixty-nine of the companies that produce and distribute whisky are members of the Scotch Whisky Association (SWA). This trade association has long lobbied the United Kingdom Parliament on issues including excise duties, international trade, intellectual property rights and trademark law, competition law, and workplace health and safety. With the new Scottish Parliament opening in April 1999, the SWA is focusing on those matters that have been "devolved" including business rates and fiscal issues, product labeling and standards, environmental impacts, health and social aspects of alcohol, and the Scotch Whisky Act which defines the types of whiskies.


Corporate Ownership of Distilleries

Who owns the distillery of your favorite dram...? Here's the list, based on the membership of the trade association, Scotch Whisky Association.

Allied Distillers Ltd., Dumbarton
Laphroaig, Miltonduff-Glenlivet, The glendronach, Tormore

Isle of Arran Distillers Ltd., Mauchline
Glen Eason

Macdonald & Muir Ltd.
Ardbeg, Glenmorangie, Glen Moray

Ben Nevis Distillery Ltd., Fort William
Ben Nevis

Berry Bros & Rudd Ltd., London
The Glenrothes

Burn Stewart Distillers PLC., E.Kilbride
Deanston, Ledaig, Tobermory

Campbell Distillers Ltd., Ayrshire
Aberlour, Edradour, The Glenallachie

Dewar, John & Sons Ltd., Glasgow
Aberfeldy, Aultmore, Craigellachie, glen Deveron, Royal Brackla

The Edrington Group, Glasgow
Glengoyne

The Highland Distilleries plc, Perth
Bunnahabhain, Glenrothes, The Glenturret, Highland Park, Isle of Orkney, Tamdhu

Grant, J & G, Banffshire
Glenfarclas

Grant, Wm & Sons Ltd., Motherwell
Balvenie, Glenfiddich

Inver House Distillers Ltd., Lanarkshire
An Cnoc, Old Pulteney, Speyburn

JBB (Greater Europe) plc., Glasgow
Bruichladdich, The Dalmore, Isle of jura, Tamnavulin, Tomintoul Speyside, Tullibardine

London & Scottish Spirits Ltd., Surrey
Glen Torran

Morrison Bowmore Distillers Ltd., Glasgow
Auchentoshan, Bowmore, Glen Garioch, McClellands

Seagram Distillers plc., Paisley
The Glenlivet, Longmorn, Strathisla

Tomatin Distillery Co, Inverness-shire
Tomatin

United Distillers & Vintners Ltd., Edinburgh
Balmenach, Benrinnes, Bladnoch, Blair Athol, Brora, Caol Ila, Cardhu, Clynelish, Cragganmore, Dailuaine, Dalwhinnie, Dufftown, Glen Elgin, Glen Ord, Glendullan, Glenkinchie, Glenlossie, Inchgower, Lagavulin, Linkwood, Loch Dhu, Mortlach, Oban, Pittyvaich, Rosebank, Talisker, Royal Lochnagar


Whisky Business: News Notes

France is Number One Whisky Importer: The increasing consumption of Scotch in France over the past 10 years has turned France in to the number one importing country of Scotch in the world with 9.9 million liters of pure alcohol imported last yea thus overtaking the U.S. In value however, the U.S. is still leading. The French seem to prefer quantity over quality -- and buy far more mid-value blends than Americans who prefer higher quality malts. Perhaps there is some accounting for taste after all...

Glenlivet in French Oak: A new Genlivet is being introduced to the U.S. market: The Glenlivet French Oak Finish. The new bottling is finished in French Limousin casks which are air-dried and toasted before filling. The company describes the effect of the wood on the whisky as imparting a "dry oakiness" and "delicate scented floral fragrance".

Laphroaig goes Green: Laphroaig Distillery has been presented with the first environmental award among malt whisky producers. Keith Tozzi, chief executive of the British Standards Institution said: "Laphroaig has distinguished itself through continually improving its environmental performance."

Glen Moray: Forget Madeira, Go for Chardonnay: A new class of whisky finishing is set to tickle the whisky connoisseurs palate. Forget Pedro Ximenez and Co. - Chardonnay has joined the game. Glen Moray has recently released a 6-10 year old bourbon-matured single malt which had been finished in Chardonnay casks for 6 months. Asked if Glen Moray was trying to target women with the new bottling, Glen Moray spokeswoman Cathy Law stated "We would not set out to target women, but the Chardonnay-mellowed whisky has proven popular with female drinkers at introductory tastings." To complement the Chardonnay-finish, a 12 year-old Glen Moray mellowed in Chenin Blanc casks is also in the works.

24 year-old Millennium Malt from Glenmorangie: Glenmorangie recently unveiled their malt for the millennium. It is a limited edition 24-year-old going at £175 a bottle. The "Glenmorangie Original" is limited to 2,000 bottles and comes with a hand-made label made to look like labels used in the 1920s. One such bottle was recently found near the distillery.

Glen Scotia Working Again: Good news for all connoisseurs of Campbelltown whiskies. The crew of Springbank, under the experienced eye of Frank Hardy (Springbank General Manager), began distilling operations at Glen Scotia in early May. Glen Scotia, owned by Loch Lomond Distilleries, had been silent since 1994. Springbank and Loch Lomond had reached an agreement by which the Springbank staff will carry on distilling at least until the end of July. The deal will then be reviewed by Loch Lomond. Mitchel Sorbie of the Loch Lomond Distillery Company has stated that he is "very pleased" with the agreement - a good sign for continuing operations. Plans are to warehouse all casks directly at Glen Scotia

Queens Award goes to Glenmorangie: Five of eight Queens Awards for export achievements in the food and drinks sector go to Scottish companies dealing in traditional Scottish products. Among the winners is the single malt distiller Glenmorangie which received it's first such award. Although Glenmorangie has been involved in large scale exports for only 4 years, it has moved up the ladder to number 3 in the malt whisky business and now does 40% of its business outside the UK. Another winner was Macallan, no newcomer to this award - it is their fourth to date and second in a row! Macallan does 60% of its business outside the UK in more than 50 countries. Other winners were shortbread baker Walkers's and MacDuff (fish) as well as McCormick Europe's Condiment Division, an American company which supplies McDonalds, among others.

William Grant set to release rare Casks of Ladyburn: A number of casksof the highly sought after Ladyburn are apparently still in vaults of William Grant. The rare casks, between 20 and 30 years old, come from the Ladyburn Distillery which was part of Grants' Girvan grain distillery. Malt distilling there stopped in 1974. Grants are now considering the best way to market the rare scotch.

New Releases in the U.S.:

  • The Glenlivet Archive 21 Year Old selected from 21 - 40 year old casks

  • Highland Park Bicentennial bottlings will be out soon

  • New Macallans: 15 & 30 year-olds at about $50 and $350 respectively

  • "Scottish Classic" 40-year-old by Glenfarclas realeased as millenium whisky with specially-commissioned labels representing the works of Robert Louis Stevenson, Robert Burns, and Sir Walter Scott

News edited from the from the Whisky World Newsletter, located on the web at http://www.whisky.de/e_whiskylibrary/newsletters/default.htm.


Gaelic Whiskies

Praban na Linne Limited was founded in Skye in 1977 by Sir Iain Noble of Eilean Iarmain. The whisky company has its headquarters and principal staff in Skye - making it the only whisky company with a head office in Skye or the Hebrides.

Té Bheag

In 1977, Praban's first blended whisky "Té Bheag" was introduced with a wholly Gaelic label. For the rest of the world, information was provided in English on the back of the label, said to be "easiest read the morning after finishing the bottle." Designed specifically for the Gaelic-speaking Hebridean Islands, "Té Bheag" is married in sherry casks for three to six months after blending.

News of "Té Bheag" reached Nova Scotia, especially the island of Cape Breton where there is still a community of fifth-generation Gaelic speakers. Regulations in Canada require that all products be labeled bilingually, meaning English and French. "We have our own bilingualism in Nova Scotia" stated a senior executive of the Nova Scotia Liquor Commission, and authorized the importation of "Té Bheag" with labels in Gaelic and French

Poit Dhubh

"Poit Dhubh" went on sale to the public in 1982 as a 12 year old very fine malt whisky. The name means "black pot" and is the term used in Gaelic for an illicit still. In the nineteenth century, some smugglers had a reputation for making the very best of whiskies. In 1991 a 21 year old "Poit Dhubh" was introduced.

For 20 or 30 years it has been the practice to chill and filter whiskies in order to remove the natural proteins. This prevented it from clouding when cold or when water was added. The Praban team decided to revert to the pre-war ways by offering an unchilled unfiltered whisky, as the proteins are the heart of the dram, keeping it soft and smooth. The new "Green Label" Poit Dhubh was supplied in traditional dark green bottles at 46% strength.

Brief Gaelic Lesson

Té Bheag (chay-VECK) means "little feminine one", but is also an affectionate term in Gaelic circles for a dram or a "wee half". Poit Dhubh (potch-GOO) is "black pot" but is also the expression used for an illicit still. Praban na Linne, the name of the company, means "the little whisky center by the Sound of Sleat."

This article was edited from information at the Praban na Linne website located at http://www.smo.uhi.ac.uk/Eilean_Sgitheanach/Praban_na_Linne/gaelic_whiskies.htm


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