Niche whisky firms feel nip in air With roughly one-third of all whisky purchases falling in the final two months of the year, the Christmas holiday season is crucial to the industry.
While the sector's behemoths keep a close and concerned eye on their respective tallies, pressure is all the more intense among the growing band of niche players in Scotch whisky, where cash for marketing budgets is generally in short supply.
Douglas Davidson, managing director of the Isle of Arran distillery, has been on the road nearly non-stop since the beginning of September. His director of sales, Euan Mitchell, and sales manager Jaclyn Kelly have also spent much of their time abroad for the last three months or so.
"As a small, fast-growing company that has to be financed on very little money, we have to do a lot of tastings," Davidson said. "Without a lot of money, what we have to give is a lot of our time, and we do that in markets all over the world."
Arran's only distillery began production at Lochranza in 1995, four years after its founders raised £1.2m from some 2500 individuals who paid £450 each for 10 cases of the distillery's eventual output. Separately, the operation's 90-odd shareholders – including a number of well-heeled individuals – have provided substantial additional capital.
Even so, it remains a tightly-run ship, and Davidson says Isle of Arran will be looking to raise up to £2m of funding in the coming year to support further growth and boost marketing efforts abroad. While the company made a loss of some £114,000 in 2005, Davidson says it is now running at a profit, although whether that will be the case for the whole of 2006 depends on seasonal sales.
"You tell me how the end of the year is going to go," he quipped.
In this sense, Isle of Arran is by no means unique. The cost of kitting out a new distillery, getting it into operation and then letting the stock mature for years before it can be sold puts whisky ventures at the bottom of any short-term investor's hit list.
Smaller and newer ventures than Isle of Arran have come up with a variety of creative ways to address this problem. Blackwood Distillers in Shetland has pre-sold some of its single malt, the first of which will not be available until 2010, but augments its coffers with some £3m in annual sales of vodka, gin and similar spirits that do not require maturation.
In Perthshire, the consortium that bought Tullibardine out of mothballs in 2003 has built a retail and tourism complex around its distillery along the busy A9. Meanwhile, the Ladybank Company in Fife, which only began construction of its distillery earlier this year, continues its application drive for what has been labelled as the first ever members-only distillery club.
Apart from Ladybank, these and scores of other niche players in Scotch whisky face the daunting prospect of getting name recognition in a market where some 2500 malts and blended brands are sold around the world. A quick check of one popular internet site throws up more than 100 malts for sale, most of which come in several "expressions" – different ages and finishes.
The challenge for the tadpoles is to find a foothold in a market where global distribution is dominated by the likes of Diageo and Pernod Ricard.
Whisky advocates say that as ownership has consolidated, opportunities have been thrown up for those who can provide a more personal touch.
"The important thing is that this is an industry selling into 200 markets, so you can find a niche out there," said David Williamson, public affairs manager of the Scotch Whisky Association.
John Glaser left his job as a marketing manager for Diageo to set up specialist independent whisky bottling company Compass Box in 2000. He believes the industry has turned a corner, with a new wave of entrepreneurialism washing through the tradition-drenched sector.
"I think the trend will continue," said Glaser, whose business will sell a mere 100,000 bottles of its hand-crafted malts and blends this year. "You will see more distilleries opening, and more niche players entering.
"It's a risky business, but it's also a viable business," he adds, noting that rising global wealth and increasing awareness of unique and one-off bottlings will continue to drive the sector.
Although still dwarfed by sales of bottled blends, single malt exports notched up double-digit percentage rises in both 2003 and 2004. This eased off to a rise of 8% last year, with values reaching £381m, but the upward trend looks set to continue in 2006.
As a result, many niche distillers are reserving most or all of their production for sale as single malts, rather than for use in blended brands.
At Benromach in Speyside, all but a small single-digit percentage of the distillery's 150,000 litres of annual production is bottled as single malt.
Purchased in 1993 by independent whisky bottling specialist Gordon & MacPhail, the distillery, which had been closed for 10 years, underwent a further five years of refurbishment before it resumed production in 1998.
Ian Chapman, marketing controller at Gordon & MacPhail, said the company spent a "very significant" sum returning Benromach to production. After nearly 100 years as successful independent bottlers, the purchase fulfilled an ambition of the late George Urquhart and his successors to control a source of single malt whisky.
"We were very keen to produce the amount of spirit that we could sell as a single malt," Chapman said. "All the statistics have demonstrated over the last few years that the single malt category is growing."
Alan Gray, whisky analyst at Sutherlands in Edinburgh, says the emergence of smaller operators has rejuvenated interest in the sector as a whole.
Although the quoted Scotch sector has dwindled from a dozen pure whisky concerns some 30 years ago to just a couple of mega-drinks companies today, Gray says there are opportunities for newcomers.
"The niche players fill a very valuable role," he said. "They are adding significantly to the enjoyment, the knowledge and the excitement around single malts.
"It is a very healthy situation because this sector is growing. There is enormous potential – single malts have a long way to go." Article Courtesy of The Herald
New interest stirred in whisky museum plans A Compulsive collector of all things associated with whisky is making a renewed attempt to generate interest in setting up a museum dedicated to Scotland's national drink.
Former distillery worker John Mackintosh believes the absence of a whisky museum is a glaring omission in Moray, the heartland of the industry.
He first mooted the idea a year ago but his appeal for like-minded people to get in touch received little response.
Now retired, he hopes to devote more time to realising his dream of helping to establish a museum to the water of life.
Virtually every square inch of space in Mr Mackintosh's home in Elgin is taken up with bottles of whisky, whisky flagons, water jugs, whisky glasses, miniatures, whisky barrels and other whisky memorabilia.
Mr Mackintosh, 60, who retired in April after 28 years as a distillery worker, would like to see his collection - or at least part of it - form the basis for a whisky museum.
He bemoans the fact that, although many of Moray's distilleries have their own visitor and exhibition centres, there is no whisky museum as such as in the area.
"We are at the heart of the whisky industry and thousands of visitors come here from all over the world every year because of their interest in whisky," said Mr Mackintosh, whose collection contains about 500 bottles of whisky, some of them extremely rare and valuable.
Despite his enthusiasm, he recognises that setting up a museum would prove too onerous an undertaking for just one person.
He would like other whisky disciples - of which there are many - to join him in lobbying influential individuals and organisations to progress the idea.
Mr Mackintosh is convinced that a whisky museum would provide the area with a huge tourist attraction.
"It would be a great thing for the tourist industry," he said.
"I would love people to see my collection and I know there are other collectors who would like to be able to show off the items they have collected.
"As things stand we have no way of letting the public see these collections, which a lot of people would find fascinating." Article Courtesy of Press & Journal
Dram fine record for employee A Worker who has never had a day off sick in his 46 year career has retired.
Murdo Reed, 62, worked in the scotch whisky industry and puts his impressive work record down to an active teenage life, a wee dram most nights, and sheer good luck.
Aged 16 he took a job as a clerk with Teachers' Ardmore Distillery at Kennethmont in Aberdeenshire, and gradually worked his way up to assistant manager.
After working in Islay, Tormore and Tain, his final move was to Invergordon Distillery, in 1996, where he became spirit-handling manager.
Mr Reed, of Stagcroft Park, Tain, said: "I've been extremely lucky with my health. My wife keeps telling me it must be a record. Article Courtesy of Press & Journal
Whisky firm toasts profit jump Malt whisky specialist Gordon and MacPhail has seen its annual profits more than double.
The Elgin-based firm, whose operations include Benromach Distillery at Forres, had pre-tax profits of £1.48million in the year to the end of February compared with £655,000 for the previous 12 months.
Accounts released by Companies House yesterday also showed turnover rose by more than £1.3million to £16.6million. Gordon and MacPhail said the figures reflected a satisfactory increase in sales, especially in export markets where there was a 20% rise during the year.
The company said the results had been flattered by profits from bulk whisky stock disposals following a review of its inventories. It also said trading in the current financial year had been buoyant, despite a static UK market, problems in Russia with the introduction of new tax marks and the weakness of the US dollar.
Earlier this year, the company launched Benromach Organic, the first organic single malt whisky accredited by the Soil Association.
Michael Urquhart, a director at the family-owned business, said yesterday that sales of this product had gone incredibly well and the first year's limited release had virtually sold out.
Gordon and MacPhail has a shop in Elgin's South Street, while its other interests include a wine merchant.
The latest accounts show that it employed an average of 119 people during the financial year. The highest-paid director received emoluments and pension contributions of £185,000 - up nearly £22,000 on the previous 12 months.
Gordon and MacPhail said its management structure had been strengthened with the appointment of four associate directors - two of them from the Urquhart family. Article Courtesy of Press & Journal
Whisky is the toast of Scottish exports The importance of Scotland's whisky industry to the nation's economy was writ large in export figures released yesterday.
Food and drink remains Scotland's most successful export sector, accounting for £3.6bn of the £18.6bn of total exports during 2005, excluding oil and gas. Spirits alone accounted for £3bn.
Total exports rose by £900m on the previous year, driven by increases in both manufacturing and service sectors. The US remains the most lucrative single country destination for Scottish products, accounting for £2.1bn of the market.
This compares with £9.1bn for European Union countries.
The figures emerged in the Global Connections Survey 2006, conducted for the Scottish Executive. Manufacturing remains dominant, accounting for £13bn of exports last year.
Scottish Enterprise Minister Nicol Stephen described the figures as encouraging, adding: "In a fast-changing world nothing can be taken for granted – and the strong showing by, for example, our food and drink industries proves that quality should always find an international market."
China makes the top 20 destinations for the first time, at number 13. Other major export sectors were chemicals (£1.8bn), office machinery (£1.7bn), business services (£1.6bn), and radio, television and communication equipment (£1.3bn).
A separate study, Measuring Progress Towards a Smart, Successful Scotland, published by the executive, reported that Scotland is making progress in raising economic output per head and the proportion of working-age people in employment. It finds that Scotland performs well against international and UK benchmarks across most of 40 economic criteria.
However, Stephen highlighted the need for an improved business start-up rate. Article Courtesy of The Herald
Attractions to relish at whisky event Mouth-watering new food and drink events are lined up for the 2007 Spirit of Speyside Whisky Festival.
Scheduled for May 3 to 7, one of the highlights will be the new competition Chef of the Year.
And for the first time visitors can help pick the winners of the third Spirit of Speyside Whisky Awards at judging sessions throughout the North-east.
The festival ends with a special awards lunch where guests can toast the competition winners. Article Courtesy of Press & Journal
Blend beats malt in whisky test In what may come as a shock to whisky connoisseurs, experts have declared a blend to be superior to single malts in a taste test.
Old Parr Superior 18 Years is the first blend to have been voted top whisky by Jim Murray's Whisky Bible, widely regarded as the pre-eminent guide to whisky.
Indeed, the author said that this was not the only decent blend available, but bemoaned the fact that many of these fine blends were made for export and hard to get hold of in Britain.
"To be honest, British drinkers just don't have a good enough choice when it comes to blended Scotch," said Mr Murray according to the Scotsman.
"We are going through a golden age for blends right now but, for the majority of drinkers here, you'd never know it.
"The truly classic blends…are export brands and you have to travel a long way to savour them."
He called for retailers and marketers to be "bit braver" and push blended malts as rivals to single malts, which are generally regarded as superior in flavour and texture.
With Old Parr Superior available for less than £20 a bottle, Mr Murray praised the nose, taste and balance of the tipple, particularly on such a low-cost brand. Article Courtesy of Brands for Pubs and Bars
Ramsey Whisky Company heads to the US Lombard Scotch Whisky is headquartered in Ramsey, but does all of its bottling and distilling of single malt whisky in Scotland.
The firm secured the worldwide wine and spirit patent rights to Pebble Beach and have now linked up with the famous US golf course to promote a new branded 12 year old Speyside single malt whisky.
Richard Lombard-Chibnall, managing director of Lombard Scotch Whisky, travelled to Pebble Beach recently to launch the product, he says a link with such a famous name will help them penetrate the US market.
He said: 'We wanted to come up with some names that were associated with Scotland and pebble beaches are. We had patent attorneys check the name out and we took a worldwide patent on the name. This initiated contact with the Pebble Beach Company. The two greatest things to come out of Scotland are golf and single malts, so we thought it was a huge opportunity to put together a premium package.
He added: 'It has brought us recognition in the American market, which we didn't have previously. it is the biggest single malt market in the world.'
Pebble Beach is due to host the U.S Open Championship in 2010, which should boost the whisky's profile further.
Not surprisingly, the business has expansion plans.
Mr Lombard-Chibnall currently employs five people in his Ramsey office, but this could increase, if his whisky takes off in the USA.
Pebble Beach, on the Monterey Peninsular, California, gained notoriety during the Roaring Twenties, when it was frequented by film stars and US Presidents. The picturesque par 3 7th hole is the signature hole and is featured on the whisky bottle.
Lombard is a family owned company that has been based in Ramsey for the past 36 years. The Lombard family, has a history in the drinks business stretching back almost 300 years. Aside from Scotch Whisky, the family have had ownership of vineyards in France, cork factories in Portugal and breweries in England.
The brewery business initiated the family involvement with whisky, when brewers bottled Whisky in addition to producing Beer. Article Courtesy of Isle of Man Today
'Water of life' auction attracts nationwide bids More than 300 lots of whisky and related collectibles went under the hammer at Inverurie's annual pre-Christmas "water of life" auction.
The Thainstone Specialist Auctions sale saw more than 200 bidders take part in the annual event, with online bidders from throughout the country joining in through the auction centre's eBid@liveauction system.
Top price on the day was £300, realised by three separate lots of a boxed Laphraoig vintage 1976 single Islay malt, a Bowmore Islay malt in original box with certificate, and a Bowmore 200th anniversary 1779-1979 bottle.
Also selling well were a set of five Chivas Regal Salute ceramic decanters that fetched £260, and a bottle of Macallan Special Private Eye 1961 that went for £250. A large selection of bottles realised between £100 and £200 while a collection of 50 miniatures sold for £75. Article Courtesy of Press & Journal
Diageo adds Chinese liquor to drinks stable Diageo, the world's top alcoholic drinks group, is to buy 43 percent of a Chinese liquor maker to tap a growing market and offer China's tipple to the world.
Through the acquisition, the maker of Smirnoff vodka, Johnnie Walker whisky and Guinness stout enters the market for baijiu -- a grain and sorghum-based alcohol whose name means "white liquor" -- putting the firm's international marketing muscle behind China's popular Swellfun brand.
Diageo has signed an agreement with Chengdu Yingsheng Investment Holding to buy 43 percent of Sichuan Quanxing Group, the company's Shanghai-listed affiliate, Sichuan Quanxing Co. Ltd., said in a statement.
Diageo will indirectly own 16.9 percent of listed Quanxing Co. after buying into Quanxing Group, which owns 39.23 percent of the listed firm. Quanxing Co. has a market value of $816.12 million (416 million pounds), according to Reuters Estimates.
Financial details of the transaction were not provided.
Diageo and French rival Pernod have long sought to expand in China, where 35 billion litres of beer, wine and spirits were consumed last year, according to Euromonitor data.
Sales of alcoholic drinks reached $416 billion in China in 2005, 8 percent more than in the previous year, the data showed.
Under the deal, which needs Chinese regulatory approval, the firms will set up a joint venture to co-operate in Chinese and international markets, Diageo said in a separate statement.
The firm plans to use the joint venture as a base for developing cheaper sourcing of packaging and other materials in China, it said.
The firms plan to develop sales overseas of the Swellfun brand -- known as Shui Jing Fang in Mandarin Chinese and a rival of Kweichou Moutai, Diageo added.
Shanghai-listed shares in the Chinese distillery closed down 4 percent at 12.55 yuan on Tuesday. News of the deal had already leaked, and investors locked in profits as the acquisition was made public, an analyst said."Quanxin shares dropped today right after the firm released the foreign investment news. It's a market reaction on the intransparency of information," said Zhou Fengwu at Oriental Securities.
Shares in the firm had jumped 48 percent by Monday's close since a two-day trading suspension from October 13 after reports in domestic media that the firm may be an acquisition target.
Sichuan Quanxing said on October 18 that it was in talks with several international makers of alcoholic drinks to discuss matters such as overseas sales.
The listed company, based in Chengdu, capital of southwestern Sichuan province, in April posted 77.8 million yuan (5.1 million pounds) in 2005 profits on 604 million yuan in revenues. Article Courtesy of Reuters
Pioneering dram plan for Borders Talks have been held about creating a £1m whisky distillery and visitor centre in the Borders.
A business consortium has held discussions with Scottish Borders Council over the plans for the first ever distillery in the region.
One of the potential sites has emerged as the Mellerstain Estate near Kelso.
If the bid is successful, it is hoped to incorporate a shop and visitor centre with a lowland whisky being produced by as early as 2008.
Adviser to the consortium, Dr Alan Rutherford, said a number of locations along the A68 through the Borders had been considered.
He added that Mellerstain - although off that main route - had also been earmarked as a potential site.
He said the development could be modelled on other successful schemes in the north of Scotland.
"The idea was very much to boost tourism and to capture the tourists as they came up into the Borders," he said.
"It is probably best to combine it with some sort of retail offering.
"I had in mind a retail centre rather like the House of Bruar something that would offer the best of Borders produce and manufacturing."
Dr Rutherford said a feasibility study had now been commissioned by Scottish Enterprise Borders.
Historic reasons
A former head of the Scotch Whisky Association, he said there were a number of reasons why there had been no such development in the region before.
"I think the history of distilling is tied up with the history of smuggling and illicit stills," he said.
"It was probably more difficult to hide in the Borders than it was in Speyside or the islands."
He added that the proximity of distilleries in Glasgow and Edinburgh and agricultural issues may also have played a part. Article Courtesy of BBC News
International boost for Speyside malts trail Distillery bosses will come together in Moray today to give the world's only malt whisky trail a global boost.
More than 250,000 brochures dedicated to the Speyside attraction will now be distributed throughout the UK and abroad.
Winding its way through the district, the signposted trail takes in eight distilleries and a cooperage.
The attraction, along with events such as the Spirit of Speyside Whisky Festival, have helped cement Moray's reputation as Scotland's Whisky Country.
It is hoped the new guide launched at Strathisla Distillery today will attract even more visitors to sample the Water of Life, in an area which is home to more than half of Scotland's distilleries. The brochure has been put together by VisitScotland, Aberdeen and Grampian, the Moray Whisky Trail partners and Moray Council.
Speaking ahead of the launch of the 2007 season, VisitScotland area director Ian Dunlop said: "The Malt Whisky Trail has been a real draw for visitors ever since it was first introduced, and continues to be one of the area's great success stories. "As well as providing Moray with an unique cultural icon, with no less than three four-star and six five-star visitor attractions, the trail showcases the superb quality our visitors can expect when they come to the area."
Strathisla Distillery, which is hosting the launch, knows well the importance of the attraction, having played a role in the trail for more than 20 years.
Chivas Brothers visitor centre manager Caroline Mitchell said: "Speyside's Scotch whiskies are famous the world over, and our consumers like nothing better than to complete a pilgrimage to the homes of the Malt Whisky Trail's household names."
The whisky trail's new guide can be ordered online at www.maltwhiskytrail.com or by contacting 01224 288828. Article Courtesy of Press & Journal
Whisky Embassies dram up economic benefits for Scottish tourism Scotland's network of Whisky Embassies is reaping dividends for Scottish tourism according to figures revealed by Scottish Enterprise today, 11 December 2006.
The tourism industry has received an economic boost since the launch of the ScotlandWhisky Embassy Network in 2003 which now boasts 66 flagship Scotch Whisky Embassy hotels reporting growth in Scotch Whisky sales of up to 10%.
The network of Embassies, which is worth an estimated £46million* to the Scottish economy, was established to promote and develop whisky tourism in Scotland. The select group mainly comprises hotels which pride themselves on employing staff who are educated and knowledgeable in the sales and service of Scotch Whisky and who can offer an environment which is favourable to whisky appreciation.
An integral part of the initiative is the Scotch Whisky school which tutors people working in the tourism and hospitality industry to understand and appreciate the production, selection and serving of Scotch Whisky. The training programme ends with an exam which must be passed to allow a hotel to become an Embassy.
The school has now seen more than 112 people working in the tourism and hospitality industry graduate with a qualification in the sales and service of Scotch Whisky.
Other criteria required to become an Embassy include a minimum accommodation rating of three stars, an extensive range of Scotch Whisky and a conducive ambience to whisky appreciation. Embassies are encouraged to offer additional experiences for whisky appreciation such as whisky evenings, nosings and tastings.
Katrina Morrison, tourism project manager at Scottish Enterprise, commented: "Scotch Whisky is an iconic product which offers the potential to grow tourism revenues by raising awareness of Scotland as a tourism destination and also through the development of a positive and exciting experience of whisky for existing visitors.
"These early results are already demonstrating the value of building on Scotland's strengths to enhance visitor experience and I hope they encourage more businesses to consider the benefits of joining the ScotlandWhisky Embassy Network."
Chris Conway from Scotlandwhisky, said: "The Embassy network is central to our plans for encouraging Whisky tourism to Scotland. Those businesses involved have already begun to see the benefits in increased Scotch Whisky sales. As recognition of the Embassy accreditation increases so will those benefits."
The Scotlandwhisky initiative is a partnership between the public and private sectors with the aim of exploring where the tourism and Scotch Whisky industries can work together to realist mutual commercial benefits. The project is financed by the Scotch Whisky Association, The Scotch Whisky Experience, Scottish Enterprise, Highlands and Islands Enterprise and VisitScotland.
Each of the Whisky Embassies, as well as whisky tour packages, can be booked on-line at www.scotlandwhisky.com Article Courtesy of Scottish Enterprise
Crop in melting pot - distillers get malting barley warning Nfu Scotland has reminded Scotland's distillers of the need to pay viable prices for malting barley if farmers are to keep growing it.
The union made its point at a meeting with the Scotch Whisky Association in Edinburgh.
It comes in the wake of maltsters promising to pay better prices for the product after a dramatic fall-off in malting barley production that has left them short of supplies to meet the needs of brewers and distillers.
Britain's farming unions have for years been questioning the poor prices paid for malting barley and repeatedly warned that farmers would stop growing it because the costs of producing it were not reflected in the market price.
Farmers have in recent years switched to growing barley and oilseed rape, both of which offer better returns and higher prices, partly because of increased buying by the biofuel industry.
Union vice-president Bob Howat said: "The reform of farm support has sent a clear message to cereal growers; the market must pay a price which creates the incentive to produce. Years of unsustainable prices have had an impact and subsidy reform has brought it to a head this year with a major drop in malting barley plantings. The reduced barley production of around 140,000 tonnes, an 8% drop, has implications for the whole whisky supply chain.
"Subsidy reform not only places a responsibility on the market to deliver a sustainable price, it requires farmers to work more closely with each other and with their customers. We had a very helpful meeting with SWA, which followed similar discussions with the maltsters' association. It is now important to ensure the good communication and encouraging noises translate in sustainable prices and practices for the whole supply chain."
Malting barley prices in recent years have been as low as £60 a tonne, almost £100 lower than the £150-a-tonne peak reached in the 1990s.
Farmers at harvest were paid £84 a tonne, but in recent weeks maltsters have been paying up to £110 to secure supplies. Anecdotal reports also suggest that barley which failed to meet malting specifications at harvest and feed crops are now being bought to resolve shortfalls.
Contracts for malting barley next year are already being offered at £115. Article Courtesy of Press & Journal
Distilleries run dry as gales hit oil delivery Whisky production in Islay is in danger of grinding to a halt after horrendous weather prevented industrial fuel deliveries to the island.
Gale-force winds and heavy rain meant a tanker could not unload its cargo at the island's new harbour last month.
And it was reported yesterday that at least two Islay distilleries had run out of fuel after three weeks of terrible weather.
A notice on the website for Bruichladdich confirms its oil ran out on Thursday.
The distillery blamed the new Argyll and Bute Council-built Bruichladdich pier for the problems, but oil supplier Shell blamed delivery problems on the weather.
The oil shipment was due at the island more than two weeks ago. The tanker waited four days, but weather conditions meant it was unsafe to unload.
It is understood that emergency supplies of fuel are being transported to the island by CalMac ferry but that is an expensive stop-gap.
A strongly worded statement on the Bruichladdich website said: "Although Argyll and Bute claim the pier is indeed suitable, this situation never occurred before the pier was renovated - even though the same tanker was in use.
"It would appear that to avoid the risk of pulling the new pier apart, the tankers are only able to unload in totally calm weather conditions - which of course are rare in winter."
Argyll and Bute Council could not be contacted yesterday.
It was reported yesterday that Bowmore distillery had also run out of fuel but no one at the firm was available to comment yesterday. Article Courtesy of Press & Journal
Scotch whisky suits prospering Chinese to a tea Already possessed of all the tea in China, the Chinese are making a serious run at all the whisky in Scotland, and they do not seem averse to mixing the two.
Chinese imports of Scotch whisky have zoomed from $2.9 million in 2001 to more than $90 million in 2005.
Last year the value of whisky imports grew 84 percent. This year China is expected to crack the top 10 of whisky-guzzling nations, according to David Williamson, public-affairs manager for the Scotch Whisky Association in Edinburgh.
While all of this is good news for Scottish distillers, it is making some Scottish tipplers a wee bit anxious. According to a recent editorial in The Scotsman newspaper, skyrocketing Chinese demand has created relative shortages of whisky and pushed up the global price.
Increasing output is one solution, but as the newspaper noted, Scotch whisky takes time, a minimum of eight years for a good-quality blended whisky and 12 to 18 years for some of the more expensive single-malt brands.
Not to panic, says Williamson: "About 18.5 million casks are currently maturing. Supply is not an immediate concern."
In China, Scotch whisky and French cognac have long been the preferred beverages of ascendant businessmen and senior government officials who subsist on a constant rotation of banquets and ribbon-cuttings.
"Western brands were offered to demonstrate that the person who was the host had money and prestige," said Martin Reimann, Asia Pacific managing director for The Edrington Group, whose brands include The Famous Grouse and The Macallan.
But a more recent phenomenon is the emergence of Scotch whisky as a status symbol among the country's growing middle class, a group equivalent to the population of the entire United States.
Yan Xi, 31, a public-relations worker in Beijing, said he first tried whisky with friends a few years ago and now considers it a regular habit. "I think whisky will get more popular in China. It's a new choice. It also represents Western culture. ... It's a way to show your status."
Distilled spirits are not new to China. The traditional favorite is baijiu. A grain alcohol starting at 112 proof and going up from there, it is available at most roadside stands to help wash down noodles or salted peanuts. Small bottles, fit for a lunch hour, sell for about 40 cents.
Scotch whisky began making inroads after China embarked on reforms in 1979. These days, Chivas Regal, the top-selling imported spirit in China, is available even in the countryside.
Martin Riley, international marketing director for London-based Chivas Brothers, points out that there are historical precedents to the Chinese experience.
He noted that Chivas Regal became an iconic brand in the U.S. in the 1950s during the postwar economic boom that greatly expanded the American middle class.
One difference that strikes some Western connoisseurs as peculiar, even slightly sacrilegious, is the Chinese habit of mixing their whisky with sweet green tea.
"Everybody drinks it this way. It tastes good, and you can drink a lot," said Li Gang, 30, a Beijing businessman who says he drinks whisky once or twice a month with friends. "If you drink pure whisky, it is too strong." Article Courtesy of Seattle Times
Inver House Announces Appointment of New Distillery Management Team
Inver House Distillers is delighted to announce the appointment of four new distillery managers as part of a distillery operations reorganisation.
Airdrie-based Inver House, one of the fastest growing groups in the industry, owns five distilleries - Pulteney, Balblair, Speyburn, Knockdhu and Balmenach. Each produces its own distinctive, individual single malt whisky and the role of Distillery Manager (DM) is integral to its success with responsibilities covering all aspects of whisky production from malted barley intake through distilling to the filling of casks and warehousing of maturing whisky. The moves include:
• Pulteney Distillery Manager, Malcolm Waring
• Balblair Distillery Manager, John MacDonald
• Pulteney & Balblair Management Trainee, Graeme Bowie
• Knockdhu Distillery Manager, Gordon Bruce
• Speyburn Distillery Manager, Bobby Anderson (unchanged)
• Balmenach Distillery Manager, Fred Sinclair
• Group Distilleries Manager, Derek Sinclair
The news heralds a new era for the brands as all distilleries with the exception of Speyburn will welcome a new DM this month. Overseeing the changes will be Derek Sinclair who is thrilled to be starting his ‘umbrella’ role as Group Distilleries Manager – a promotion from his previous position as DM at Balblair Distillery.
Inver House is also welcoming an external recruit; John MacDonald who has become the new Distillery Manager of Balblair. John previously worked as the Assistant Distillery Manager of Glenmorangie and brings 17 years of malt whisky distilling experience with him to the role.
Inver House’s focus brand Old Pulteney has enjoyed phenomenal success over the past few years including the recent win of the Gold: Best in Class award for its 12 Year Old at the 2006 International Wine & Spirit Competition. Malcolm Waring, who previously worked at Pulteney before his recent position at Knockdhu distillery, is looking forward to embracing his new role;
“I am delighted to be returning to Pulteney as Distillery Manager. All the DMs at Inver House are close and we regularly speak to each other - sharing our ideas and experiences. It is an incredibly proud moment for me and a great opportunity for us all.”
Martin Leonard, Operations Director of Inver House Distillers said:
“It is an exciting time for Inver House. We are growing as a group and are delighted that we have been able to promote a number of our experienced and loyal members of staff in these changes. We have a great mix of talent, experience and enthusiasm within the team and I wish them success in their new roles.”
Scotch Whisky, 150 Years Old, Fetches 14,750 Pounds A half-sized bottle of Scotch whisky that's about 150 years old sold for 14,750 pounds ($28,820) at auction in London, beating the top presale estimate by almost 50 percent.
The Glenavon Special Liqueur Whisky, bottled on Speyside, in northeast Scotland, some time between 1851 and 1858, was bought by an unidentified buyer at the auction yesterday. The bottle contains 14 fluid ounces and the whisky may be the world's oldest, according to Bonhams, the auctioneers.
``There is an increasing interest in whiskies that are a bit different,'' Richard Harvey, head of European wine sales at Bonhams, said in an interview. ``I think it's a record for that size.'' Bonhams had estimated a sale price of as much as 10,000 pounds for the half-sized bottle.
The prices collectors are willing to pay for Scotch malt whisky have risen. An anonymous Asian buyer in September 2005 paid 70 million South Korean won ($75,200) for the last bottle of 1926 Macallan malt whisky, a record for a public auction. A bottle of 60-year-old Macallan fetched 20,150 pounds in 2002.
The winning bidder was represented by telephone from Scotland, said Harvey. The bidder whose offer was beaten came from the U.S., he said.
The Glenavon whisky may date back to before 1851 because there are no records of the distillery before then, Harvey said. The bottle was sold by a Northern Ireland woman whose family owned it for at least three generations, he said.
The Glenavon distillery was licensed in 1852 to John G. Smith, son of the founder of the nearby Glenlivet Distillery. In 1859, they consolidated their distilleries at Glenlivet, which is now owned by Pernod-Ricard SA's Chivas Brothers unit.
The price included a 10 percent so-called buyer's premium, which is the fee payable by the buyer to Bonhams. Article Courtesy of Bloomberg
Swa hoping for spirit of co-operation Whisky firms are hoping to see a crackdown on bootlegging in the fast-growing Chinese market following a meeting in Beijing yesterday.
Scotch Whisky Association (SWA) officials and Trade Secretary Alistair Darling met senior Chinese government and industry figures to explore better protection of Scotland's national drink in the Far East country.
They also looked at ways for whisky and Chinese spirit producers to work together.
China is an important emerging market for whisky distillers, with exports to the country last year valued at £46million.
The main aim of yesterday's gathering was to examine how drink firms and consumers can be protected from the consequences of unfair competition, such as counterfeit goods, and to cement UK-Chinese co-operation on protecting intellectual property rights.
Whisky is protected under World Trade Organisation rules as having a recognised "geographical indication of origin", meaning it can only be made in Scotland.
SWA chief executive Gavin Hewitt said: "Co-operation between the industry and both UK and Chinese governments has led to good progress being made towards ensuring there is strong protection for Scotch whisky from counterfeit and unfair competition in this important, emerging market. China is determined to implement and enforce appropriate legal protection for Scotch whisky and other spirit drinks.
"We welcome this commitment, as well as UK government support, and hope that the necessary legal protection can be implemented in the near future to the benefit of both consumers and distillers."
"Scotland and China have proud distilling traditions. Since the 1940s, the SWA has built up considerable experience of protecting Scotch whisky internationally and we hope we will be able to share our experience and work closely with Chinese spirits producers as they look to protect their products overseas."
Yesterday's meeting, organised by the British Embassy in Beijing, brought together the UK and Chinese governments, the SWA, the International Federation of Spirits Producers, the China Alcohol Industry Association and other drinks industry representatives. Article Courtesy of Press & Journal
Bartenders in high demand to quench new thirst George Zhou Chong's favourite alcohol is 15-year-old Glenmorangie single malt Scotch whisky. His speciality as a bartender, however, is martinis.
"Very strong," Zhou said as he combined Bombay Sapphire gin with a twist of lemon and olive juice. "Stirred with this," he said, holding up a long silver spoon. "The old way."
In Beijing and other metropolises around China, the number of locally born bartenders and bar owners like Zhou who foster a traditionally Western type of entertainment sipping quality drinks in a plush setting is growing.
Tom Pattinson, editor-in-chief of the entertainment guide Time Out Beijing, says the reason the number of lounge bars in the capital, in particular, has soared in the past six years is a combination of China's rising middle class and a more professional, trendier expatriate scene.
"Over the past five years, things have changed a lot," Pattinson said. "Now you have expatriates coming here who have lived and made it in places like Paris, New York, in London and the rising number of wealthy young Chinese."
What's missing, he said, are quality cocktails to match the setting. "You still don't find a lot of great drinks."
For bartenders such as Zhou and Echo Sun Yuan, who thrive on mixing their own concoctions, the opportunity to stand out certainly exists.
Zhou, 24, a native of Anhui Province in Central China, is the co-owner of a bar in the Sanlitun area called Q Bar. He started the venture in June with Sun, a Hunan native, and a German expatriate friend, Ralph Ziegenhorn. But Zhou's first love is not management.
"People ask me why, if I'm an owner, I'm out here mixing cocktails," he said. "It's because that's what I enjoy."
The menu at Q Bar lists a wide range of drinks, including bar specialities and seasonal offerings.
Bars such as the well-established Centro, with renowned bartender Bruce Li, and newcomers such as Face also offer high quality drinks at high prices. Mostly, however, the flood of bars that have come to Sanlitun and Houhai don't offer much beyond a place to sit with a beer, a plate of boiled peanuts, and Cantonese pop music.
Against that background, Zhou and Sun are getting attention for their skills. Q Bar has been written up in a few of the city's entertainment magazines, and Zhou's frozen martini graces the cover of a guide to Sanlitun's bar scene.
Their success, however, has also meant a lifestyle that few of their older family members, or even their peers, understand.
"In Hunan, they don't have so many bars," said Sun, 21. "Bars sell only beer or Scotch, things like that. Nobody knows about Western bars, about their history or what they offer."
When Zhou's mother visited his bar this summer, she liked the look of the place but "didn't have anything to drink," he said. "Just some soda. She doesn't like cocktails."
Q Bar's clientele are mostly expatriates or Chinese from Taiwan and Hong Kong. But as bars become more popular among Chinese locals, attitudes are slowly shifting, Sun said.
Burgeoning bar scene
Last year China sold nearly US$5.7 billion in spirits, including brandy, gin and whisky. That number is projected to hit US$6.15 billion by 2010, according to research firm Datamonitor.
The growing bar culture among Chinese will help the country realize that prediction, as will the influx of higher paid, more professional expatriates.
That's quite a change from the late 1990s, when the nightlife in Beijing was dominated by students and businesspeople who drank in hotel bars, editor Pattinson said.
The pluses at that time, he said, were plenty of live music and a "relaxed scene." The main drawback was poor service. Few places could match bars and clubs in cities such as Shanghai and New York.
A turning point occurred when entrepreneur Henry Li opened Neo Lounge in north Sanlitun in November 2001. "It was the first decent non-hotel bar in Beijing," Pattinson said. It has since closed.
Lee's offering was quickly copied, and for the first time, it became fashionable for young Chinese professionals to come to lounge bars to have expensive drinks and listen to DJs spinning the music.
Along with these bars came "super-clubs," large venues that packed in the crowds. Some of them, such as Baby Face and Cargo, still thrive, but slightly smaller, more subdued bars and clubs are now the most common.
One such bar is Face, which opened in July. After it became a success in Shanghai, Jakarta and Bangkok, the managers opened one in Beijing because they found a good location and wanted to continue to expand in China, manager Daniel Khoo said.
As with many other bars, they had a slew of local applicants looking to be bartenders or servers. At first, Khoo said, it was hard to find people who could speak English and knew how to serve properly.
"Initially, it was a challenge for me," he said. "But in general they are all decent staff and are willing to learn."
Face, known for its cushy atmosphere, brings people in from Indonesia and Singapore to train the new staff. "They teach them what kind of attitude to have and how to do service," Khoo said.
The employees also learn how to make the bar's drinks, which are a combination of Face specials and traditional cocktails.
Mixologists
The first drink Sun at Q Bar said she ever made was a gin and tonic, and "it didn't turn out so well."
So she got a bartending book and started to learn how to make drinks while working as a waitress. She improved, and eventually she was getting ideas from her clientele.
"Many of our drinks come from the customers," she said. "They tell us what they like, what might make a drink a little better or different."
Unlike in the West, where people often go to bartending school, many of Beijing's bartenders do as Sun did: They learn on the job.
Zhou's first exposure to bartending was the movie "Cocktail," starring Tom Cruise. "I thought it looked cool," he said. "I wanted to be like that."
While clearing tables and cleaning glasses at a hotel bar in Beijing, he met an expatriate from the United Kingdom who knew a lot about drinks and drinking.
"He taught me about alcohol, not just how to make drinks, but actually how single malt Scotch is made from its start in freshwater streams to the point where it's bottled," Zhou said.
Zhou also picked up some language skills. A native Mandarin speaker, his English is mainly reserved for the names of drinks and jazz musicians. "Miles Davis," he said when asked about his favourite musicians. Then, after a pause, "John Coltrane."
Zhou and Sun met in Beijing. After working together for about two and a half years, they started to consider opening their own place.
"After you work in a bar so many years, you realize there are so many things you want to do but can't," Sun said. "The bars all have the same cocktails, and we wanted to do something about that. We wanted to make our own special drinks."
In the six months since Q Bar opened, Sun and Zhou have developed a following. One employee said she applied to work there after reading about Zhou's drink-making skills in a magazine.
When you see the quiet weeknights at Q Bar, you might get the impression it won't last. But at the weekend, the respect among bar-goers manifests itself, keeping the pair busy enough.
On a recent weekday, Sun was checking the finances while Zhou prepared to start serving. As night came, a few regulars drifted in, and the staff dimmed the lights and turned up the music.
Zhou, with his short, spiky hair and a neatly pressed shirt, slid around the dimly lit bar, mixing drinks and fiddling with the stereo. Taking a break to chat with customers, he sipped rum cut with grapefruit juice and lychee.
When a customer offered that his favourite drink was MacAllan's 10-year with bing, Zhou nodded.
"On the rocks," he said. "Cool." Article Courtesy of People's Daily Online, China
Envoy gets a taste of Scotland Argentina's ambassador to Britain has been treated to a whistle-stop tour of Moray and its attractions following a chance meeting with an Elgin taxi driver.
Sandy Cooper, 62, of Duff Avenue, invited Federico Mirre and his wife, Cecelia, to Scotland after he got chatting to them at a function in London.
Both Mr Cooper and Mr Mirre now hope the visit will pave the way for businesses in Moray and their Argentinean counterparts to forge stronger links.
During the two-day visit to Moray, Mr Mirre and his wife enjoyed a tour of Johnstons of Elgin, Gordonstoun School, Ballindalloch Castle, Benromach Distillery and Moray College, where they had lunch cooked by students.
Mr Cooper said he had been at a Royal Geographical Society award ceremony when he was first introduced to Mr Mirre. The retired businessman said he was charmed by the diplomat's friendliness and through their conversation discovered his wish to visit Scotland.
On his return to Elgin Mr Cooper set about collecting a range of samples of local produce from the Moray region and sent them to the embassy along with an invitation.
Mr Cooper, a former tourist officer, acted as an official guide to Mr Mirre during his visit.
He said yesterday during a tour of the whisky distillery that it had been a hectic time but it was important to extend friendship to other countries.
He said: "We must extend to everyone a hand of friendship and conciliation. We only have to look to the Middle East today to see the situation. But, through cultural, educational, commercial and tourism links the bond can only get stronger and I know from speaking with the ambassador he is going to actively pursue these avenues.
"It is most important for tourism in Scotland generally but for Moray in particular that we take the opportunity to be ambassadors for our county."
Mr Mirre said his visit to Moray had exceeded his expectations of Scotland.
He said: "I have seen all the different personalities and ways of life from the area."
He said he hoped he would be able to return to Scotland.
"Meanwhile we will try and establish a connection between the Scots and Argentines so that we can continue these links through our corporation projects," said Mr Mirre.
"This visit went way beyond my expectations. The strength of the individual communities and Scotland as a whole is something not found in many parts of the world." Article Courtesy of Press & Journal
'Oldest' bottle of whisky for sale A bottle of scotch whisky believed to be the oldest in existence is to be auctioned later this month.
The Glenavon Special Liqueur Whisky, believed to be almost 150 years old, is expected to fetch between £5,000 and £10,000 when it goes under the hammer at Bonhams on November 29.
The two-part moulded olive-green glass bottle, which is unusually small in size, contains about 14 fluid ounces of pale gold liquid and is believed to have been bottled by the Glenavon Distillery between 1851 and 1858.. Article Courtesy of IC Scotland
Talisker wins world's top whisky prize One of the most remote distilleries, Talisker on Skye, has won what is widely regarded as the world's premier prize for malt whisky.
A Talisker 18-year-old has scored top honours at this year's International Wine and Spirit Competition, receiving a trophy for single malt over 15 years old. IWSC trophies indicate supreme achievement. Just four trophies were awarded this year for Scotch and Diageo's classic malts selection collected two of them.
Distillery manager Charlie Smith travelled to London to bring home the trophy and the distillery team has been celebrating its homecoming in the time-honoured fashion. The 18-year-old expression of Talisker was introduced in 2004, alongside the familiar 10-year-old bottling. Article Courtesy of Press & Journal
Actor raises a dram as distillery centre opens A New visitor centre opened at an Islay distillery at the weekend as part of a £20million, five-year global investment programme for the single malt whisky brand.
Scottish actor James Cosmo, who starred alongside Mel Gibson in Braveheart, declared the new centre at Bowmore Distillery open as guests enjoyed a few drams and a firework display.
Bowmore is also about to launch a new bottle and packaging for its whisky.
The new visitor centre, which now forms part of the distillery tour, features Bowmore archives which have never previously been on display to the public.
Operations manager Iseabail Mactaggart said: "It showcases the distillery's rich history so well and makes the most of our stunning setting by Loch Indaal.
"This gives us the opportunity to share with our visitors the traditions that we are all so proud of here at Bowmore."
The distillery was established in 1779 and is the oldest on Islay. It is owned by Morrison Bowmore Distillers, which is a subsidiary of Japan's Suntory.
Around 10,000 people come to visit the distillery each year. Article Courtesy of Press & Journal
Prince toasts his Scotch plan HE IS known for his love of all things Scottish — including the national drink — and now Prince Charles is to launch his own brand of Scotch whisky.
The prince has chosen one of four unmarked bottles of blended malts from the north of Scotland, which he tasted at Clarence House. After several considered samplings, one in particular tickled his palate.
The whisky, Barrogill, the former name of the Castle of Mey, the prince’s holiday retreat in Caithness, will be launched in the new year. A watercolour of the castle, painted by the prince, will appear on the label.
The secret blend is being produced by distillers Inver House in Airdrie, which makes Old Pulteney single malt, one of the prince’s favourite tipples. Barrogill will retail at just under £20 and will be sold in supermarkets and off-licences.
The whisky is being launched as part of the prince’s efforts to support remote communities in northern Scotland. Each bottle sold will raise £1 for the prince’s North Highlands Initiative (NHI), which hopes to breathe new life into the area’s economy.
The NHI was formed as a direct result of the prince’s involvement in bringing together farmers, local business people and tourism representatives to address some of the challenges facing rural communities in the far north.
The Scotch Whisky Association (SWA) is looking forward to sampling the special malt and welcomed the prince’s support to remote Highland communities.
“Scotch whisky is clearly associated with local communities in the Highlands and it’s good to see whisky being used to support this local initiative,” said David Williamson, a spokesman for the SWA.
Meanwhile, a former government scientific adviser has launched an attack on Prince Charles’s range of organic products. Professor Anthony Trewavas, of Edinburgh University, dismissed the heir to the throne’s Duchy Originals collection as an expensive “middle-class fad”. Article Courtesy of The Times
Whyte & Mackay Ltd. Continues to Evaluate Multiple Bids; Company Has No Further Comment with Regard to Proposed Sale to United Breweries Whyte & Mackay’s Vivian Imerman, Chairman and Chief Executive today made the following statement with regard to recent articles in Dow Jones and Associated Press featuring Vijay Mallya.
"Whyte & Mackay is in continued negotiations with a number of parties and we can only confirm that we are still in talks with Mr. Mallya,” said Mr. Imerman. “We have signed a confidentiality agreement which bars us from saying anything more.
“We continue to execute on our strong vision for the Company and its core brands Whyte & Mackay, Vladivar, Jura, The Dalmore and Glayva.”
About Whyte & Mackay Ltd.
Whyte & Mackay Ltd. is a producer of premium quality spirits, including Whyte & Mackay Blended Scotch, Jura Single Malt whisky, The Dalmore Highland whisky, Glayva whisky liqueur and Vladivar Vodka. Headquartered in Glasgow, Scotland, the Company employs over 600 staff on sites around Scotland and the UK. In the near future, the company will be adding its new all-purpose state-of-the-art production facility in Grangemouth, Scotland to its other Scottish distilleries, which include the Isle of Jura (situated off the west coast of Scotland) and The Dalmore (based in Ross-shire). Article Courtesy of Business Wire
