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28 May 08

JAPAN: Asahi Breweries to consolidation production

28 May 2008 | Source: just-drinks.com editorial team

Asahi Breweries will combine its production systems with those of subsidiary Nikka Whisky Distilling Co to centrally manage ingredient inventories at their 16 breweries and distilling facilities, according to local reports.

The unification is expected to help reduce disposals of unused ingredients, cutting annual costs by about YEN500m (US$4.7m).

The new YEN2.5bn system will be made by Fujitsu and will eventually include all its domestic liquor operations in the system.

Earlier this month the Japanese beer maker announced it is to issue JPY70bn (US$675m) of convertible bonds, with some of the funds raised to be used to buy back shares.

The company said it would issue JPY35bn worth of bonds due in 2023, and a further JPY35bn worth due in 2028.

28 May 08

Highland Park has released a new bottling:

THE AMBASSADOR CASK 4

Our Brand Ambassador Cask 3 proved to be another success so we at Highland Park are delighted to release Brand Ambassador Cask 4. This cask was distilled in 1979 and bottled in 2008, this is Cask No 413, a 29yo whisky with a high cask strength of 56.1% ABV. Only 160 70cl bottles have been produced.
(Size: 70cl 56.1% ABV) £225.00

27 May 08

Fresh news from Islay and Feis Isle 2008
I just arrived back from Islay and more news about the Feis Ile 2008 will be posted tomorrow in the report section.
To give you a wee taste of Islay:
- Tasting notes of e.g., Laphroaig Cairdeas, Lagavulin 1993 Single Cask Feis Ile 2008, Ardbeg Renaissance, Ardbeg Corryvreckan, and Bruichladdich X4+1 Valinch
- Report from the Ardbeg Manager's tour, Lagavulin Master Class, Lagavulin Warehouse tour, Bruichladdich Open Day, First Murray McDavid Master Class, and the crazy release of the first official bottling of the Port Ellen Single Cask.
- Photo Gallery

NOTICE: For your information, from all flights from UK, the volume of liquid contained in 1 bag should not exceed 5 L or 7 bottles and they are very strict on Islay to respect this restriction!

Aerial view of Islay on May 2008

 

20 May 08

Firm to create Russian whisky

A RUSSIAN drinks firm inspired by a visit to the Capital is set to start producing whisky in the Caucasus region of Dagestan.
Drinks manufacturer the Russian Whisky Company claims Dagestan's spring water and barley from the mountains are perfect for making single malts.

The distilling techniques were learned during a fact-finding mission to Edinburgh. http://news.scotsman.com

18 May 08

Shetland's first whisky on the rocks hit by credit crunch and divorce court

By William Lyons
BLACKWOOD Distillers, the spirits group aiming to build Shetland's first whisky distillery, has suspended the project amid difficulties with financing.
Caroline Whitfield, the chief executive of the Lerwick-based firm, first unveiled plans in the autumn of 2002 and initially aimed to open the distillery by the end of 2004, but planning and other delays meant the target was put back to late 2007.

To fund Blackwood's £5m distillery, the firm produces and sells high-end, specialised spirits. These include a vodka, gin and vodka cream. It recently launched Diva vodka, which uses a diamond filtering-system and comes with Swarovski crystal gems suspended in the middle of the bottle.

But the distillery project has now been further delayed as the funding package Whitfield put in place has been held up by her divorce, while the company that produces its gin and vodka brands has fallen into administration.

Whitfield admitted that the project has been hit very hard by the credit crunch, but insisted that it was now on a firmer financial footing and that an announcement on construction of the distillery at Catfirth, Nesting, was due soon.

She said: "The reality is the credit crunch has really affected us. It is virtually impossible to get growth finance at the moment, which means that creditors are jumpy. The funding package we have is subject to me finalising my personal circumstances, in particular a financial court decree post my divorce. As I am a significant shareholder, the investors want to ensure that their investment is not subject to any wrangling in a divorce settlement."

Whitfield insisted that Blackwood's gin and vodka brands were still trading, but following strong pressure from creditors, Shetland Spirit Company, a subsidiary of Blackwood Distillers Holdings, was put into administration. The spirits will now be distributed under licence by the Aim-listed Blavod spirits firm.

Whitfield added: "It is not liquidation, it is not the horrible end of things, we just had to put the spirits company into administration to protect all the creditors. But the brands are likely to grow and flourish under a larger partner than ourselves.

"We couldn't start work on the distillery until I got the white spirit business sorted; that is now done. I needed to get my divorce terms sorted and that will be coming through, then further investment will be coming through from there."

In 2006, Blackwood teamed up with the Scottish entrepreneur Frank Strang to announce they would spend £5m converting part of the Saxa Vord base on the island of Unst into a whisky distillery. A year later it was forced to abandon plans to redevelop the RAF site after agreement could not be reached with Military Asset Management, the owner of the camp. http://business.scotsman.com

13 May 08

Whisky festival doubles in size

THE Spirit of Speyside Whisky Festival is to double in size next year – from five days to 10.

The major move was announced as last weekend's 2008 event was hailed as an outstanding success.

Chairman of the board of directors, Dick Ruane, said the expansion would coincide with the Scottish Government's Homecoming campaign in 2009, which was designed to encourage people with links to this country to come on holiday and explore their family connections.

"The industry is delighted that whisky is to be a pillar strand of the Government's Homecoming Scotland 2009 initiative and we are ready and enthusiastic to play a part in this celebration," he added.

Spirit of Speyside is among many organisations nationwide who have applied for financial assistance towards staging events in Homecoming year and an announcement on money being made available is due later this month.

Moray Council has also applied for a grant towards marking the arrival of a party of up to 250 from the Canadian Pacific Railway Company to the area where two of its founding members, George Stephen of Dufftown and Donald Alexander Smith of Forres, were born.

Mr Ruane said the move to 10 days was a natural progression for the festival, which year after year was drawing more tourists and generating more interest among local people, as well as boosting the local economy.

Last year's brought 16,000 people into Speyside and contributed almost £600,000 for the local economy. Visitor numbers last weekend were expected to top 20,000.

"The growing support we receive from the whisky industry, local business and commerce and the public sector is justified by the ever increasing number of visitors who come from all over the world to experience the produce of this wonderful part of Scotland," said Mr Ruane.

Planning is about to get underway for 2009 and he hoped communities would be prepared to become involved in a much bigger programme of events.

"The challenge is there for people to be involved and to promote their own areas and businesses, not just in Speyside but over the whole of Moray, and we would welcome widespread participation," he added.

"We have become much more professional as the years have gone on and that has helped make the festival the great success that it is," he added.

Moray MSP and Cabinet Secretary Richard Lochhead stepped in at the last minute to officially launch the festival, after First Minister Alex Salmond took sick.

"Next year is the 2009 Homecoming and the Scottish Government and the whisky industry will work closely together to promote whisky and remind Scots abroad about the magic of our national drink," Mr Lochhead said. http://www.northern-scot.co.uk

11 May 08

A new whisky community website is now in place
We’ve spent the last several months concentrating on making the community the best user experience we could. You’ll find plenty of content about the distilleries of Scotland along with a quickly growing community of people passionate about learning, sharing and enjoying everything about Scotch whisky.

There's also a store stocked with one of the web’s largest selections of single malt whisky. And to celebrate the community finally going live, if you join the community, shipping within the continental USA is free for a limited time.

So please take a look (http://www.ForScotchLovers.com), join the community, and let me know what you think.

Thanks for your anticipated support, and I hope to see you online at ForScotchLovers.com

04 May 08

 

New books: Gavin D. Smith and Graeme Wallace have annouced the release of their new book: Ardbeg- A peaty Provenance. The book (£30) can be ordered via http://www.fineexpressions.co.uk/.

Seen at the last whiskyfair in Limburg was the flyer for the new book of Ulf Buxrud "Japanese Whisky: facts, figures and taste". This will be is second book after "Rare malts".

Ian Macilwain is also working a new book about whisky. Some of his work can be seen at http://www.broombank.co.uk/ and the photographs are impressive. The book will be published as an art book of high quality of limited release.

 

03 May 08

Whisky makers call for government support to maintain growth
By Neil Merrett
Scotch whisky exports reached record heights in 2007 as shipment volumes rose eight per cent to 1,135 million bottles, though government support is required to ensure further industry growth, claims a leading trade organisation.

The Scotch Whisky Association (SWA) said that tariff reforms within emerging markets like India had helped to defy the impact of wider economic concerns on demand for the product, citing figures from the UK Revenue & Customs data.
Despite obtaining new EU-wide legislation to tighten the definition on products claiming to be Scotch whisky, distillers remain concerned regarding new taxing policies within the UK, which they claim could setback the industry.

Export potential

Paul Walsh, chairman of the SWA, said that export sales of the tipple generated about £90 of income for the UK economy every second, though continued government support was required to ensure growth continued.

"Distillers continue to watch market developments carefully but the trends remain positive, with both mature and emerging markets performing well, and Scotch whisky growing on a sustainable basis," he stated.
"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."

Walsh added that plans for a £400m investment in production within the UK highlighted the strong position of whisky makers in the country, though should not be taken for granted.
"Distillers look to government north and south of the border to continue to work with them to support future international competitiveness, tackling barriers to market access overseas, whilst also recognising the importance of a fair tax and regulatory environment at home," he stated.

Tax issue

Despite general industry optimism, whisky makers, like the rest of the country's alcohol suppliers, have recently claimed that they are being hit by an unfair taxing policy, calling for cuts in the amount of charges they are facing.
However, UK chancellor Alistair Darling said back in March that the government was imposing a six per cent increase above the inflation rate on alcohol duties as part of the annual budget for the country.
Although the chancellor himself did not refer to health as a reason for the increase, the development was nonetheless a welcomed by charities and other concern groups in the fight against irresponsible drinking.
However, the SWA had condemned the policy, which they claim amounts to a nine per cent rise in duties for distillers. http://foodnavigator.com/

28 Apr 08

World Whiskies Awards 2008 (www.whiskymag.com)

WORLD’S BEST
WHISKY LIQUEUR
WILD TURKEY AMERICAN HONEY

WORLD’S BEST
GRAIN WHISKY
COMPASS BOX HEDONISM

WORLD’S BEST
NEW RELEASE
GLENROTHES 25 YEARS OLD

WORLD’S BEST
BLENDED MALT WHISKY
BLUE HANGER 30 YEARS OLD

WORLD’S BEST
BLENDED WHISKY
SUNTORY HIBIKI 30 YEARS OLD

WORLD’S BEST
AMERICAN WHISKEY
GEORGE T. STAGG

WORLD’S BEST
SINGLE MALT WHISKY
YOICHI 20 YEARS OLD

24 Apr 08

Inver House profits double on sales surge

Published Date: 24 April 2008
By Jane Bradley
SCOTCH whisky producer Inver House Distillers has reported a doubling of annual profits following a "significant" investment in its marketing activities.

The Airdrie-based producer, which operates five distilleries, said pre-tax profits for 2007 had soared to £3.8 million in 2007 – 107 per cent up on the previous year.

A booming Scotch market, combined with a growing global awareness of Inver House brands such as Old Pulteney, Balblair and Speyburn, pushed turnover to £57.8m from £38m in 2006.

Managing director Graham Stevenson said the firm had upped its marketing spend to "hundreds of thousands of pounds" over the past three years, through sponsorship deals and boosting Old Pulteney's image as a maritime blend.
Stevenson told The Scotsman: "We are delighted with 2007's results, but we have had a good, strong last couple of years. In 2005 and 2006 we increased our investment into marketing, which is bearing fruit now."

The privately-owned group said that while it was disappointed at the UK government's decision to increase tax on whisky by 59p on a bottle, it did not believe the move would have a major impact on next year's figures.

"Obviously, we are disappointed," Stevenson said. "One of the main problems is the damaging precedent that it sets for export markets. However, the effect on single malts in the premium markets, like our brands, should not be too significant."
He said he expected the current growth in demand for whisky, driven by emerging markets in China and India, to continue.

Inver House said its flagship single malt, Old Pulteney, performed particularly well, boasting a 24 per cent increase in UK sales over the past 12 months.

The brand, which was launched by Inver House in 1997, has its roots in a historic distillery in the coastal town of Wick and is on track to become one of the UK's top-selling single malt brands by 2009.

Stevenson added: "We are pushing Old Pulteney's maritime roots and have launched promotions and so on accordingly."

The company formed partnerships with five high-profile sailing events around the UK, and also sponsored round-the-world yachtsman Sir Robin Knox-Johnston, pushing volume sales "significantly" higher over the period.

The brand, which has also grown internationally to become Sweden's best-selling single malt, scooped a national distribution agreement with Tesco and has also won an account with pub chain JD Wetherspoon.

• Edrington Group, producer of Famous Grouse and The Macallan, has announced that Trina Glen will join its main board next month.

Glen, who has most recently led the commercial team's push into Asia and America, will become group strategy director. http://business.scotsman.com

20 Apr 08

The case (or 31 of them) of the missing whisky
The British Revenue & Customs people are convinced a shipment of 186 bottles of a rare cask of Highland Park Scotch whisky left Glasgow Airport as scheduled.

What they don't know is what happened to it.

The shipment, valued at $240,000US, was aboard a Delta Airlines flight bound for Los Angeles, intended to be delivered to Saybrex International, a Beverly Hills spirits company. The 32-year-old whisky is rated as one of the top single malts in the world.

“We are shocked and outraged that 31 cases of alcohol weighing some 800 pounds can just disappear while in the care of Delta and various governmental agencies,” said Ari Bussel, Saybrex International's vice president of operations.

http://spiritsnotebook.blogspot.com/
20 Apr 08

SWA must get a taste for whiskey and become global leader – Mallya

By William Lyons
VIJAY Mallya, the Indian drinks tycoon, has called for the Scotch Whisky Association (SWA) to transform itself into a global whisky association embracing Irish and American whiskies.
In his first major speech to the Scotch whisky industry since buying Whyte & Mackay, the Indian billionaire said that the industry needed to unite and embrace a raft of changes to make Scotch more attractive to a younger audience or risk losing out to other categories such as vodka.

In a speech that unsettled many purists, Mallya called for experimentation with natural additives and ingredients to create a "spectrum of flavours" to win over the growing affluent youth in India.

Speaking to the World Whiskies Conference he said: "Why not have a more global view of Scotch whisky and create a world whisky association?

"The SWA spends too much time worrying about whether whisky is spelt with an 'e' or not when it should be broadening the appeal of Scotch whisky to take on other categories head on.

"As an industry we should be looking at ways of making Scotch whisky far more appealing to a younger audience. One such route could be adding natural ingredients like gin does with juniper."

In the past year the SWA and India have come to blows on an almost monthly basis over the taxation of imported spirits into India. Despite the abolition of the additional duty levied on imported spirits by the Indian government last year, individual states have since introduced their own taxes on spirits from abroad. Although Mallya's tone was conciliatory, he repeated his desire for a process of constructive dialogue.

"We in India not only welcome the Scotch whisky industry, we acknowledge the Scotch whisky industry, and we wish to wholly co-operate with the Scotch whisky industry. If that were not the case, I would certainly not have invested £600m in acquiring Whyte & Mackay.

"(In India] it's not all one-way traffic in that we want to shut you (international spirits producers] out. Companies need to look objectively at how to deal with government. Confrontation doesn't work in India, it gets our backs up.

"I have to say in the past the SWA has been a bit heavy-handed in its relations with India. Confrontation does not work in India, it just leads to stubbornness with a situation that a no is a no for the sake of politics.

"I read Scotland on Sunday (last week] and in that article the Scotch Whisky Association was quoted as calling India tardy. That isn't the language of international relations, I have had several ca

lls from people in India taking offence to the word tardy. They say we are not tardy.

"The SWA should get into bed with the Indian spirits manufacturers."

Mallya now controls about 60% of the Indian whisky market following his £595m acquisition of Whyte & Mackay last May. Since that acquisition the price of bulk whisky has risen considerably as the widespread practice of selling whisky for cheap own label blends has stopped.

Mallya said he liked the idea of prices staying high and called on the SWA to restrict production, much like the Opec countries do with oil.

He said: "Over the last few years we have seen the price of whisky rise. Well, why don't we keep it that way? The SWA could become a value custodian.

"In the past we have seen overproduction ruin the profitability of the industry, one way we could prevent this is by restricting production. Opec does is it." http://business.scotsman.com

16 Apr 08

If you ask me CBC – malt whisky’s rocky evolution

16 April 2008 | Source: Chris Brook-Carter, http://www.just-drinks.com
The future for malt whisky is bright, but not without its challenges
view 3 related images
Malt whisky continues to outpace the growth of blended Scotch and its leading brands are putting in stellar performances. But as a new report from just-drinks explains, a closer look reveals a category still underperforming with issues of pricing, image and availability threatening its future. Chris Brook-Carter reports.

If prizes were given out for the sheer volume of column inches a spirits category commanded in the consumer press, then malt Scotch_whisky would undoubtedly be the toast of the drinks industry.

This relatively niche category continues to garner interest and enthusiasm well beyond the limits its actual size warrants. Some of this hype is justified. Some of it, however, as the latest report from just-drinks - Global Market Review of Malt Whisky - suggests, is not.

There is little doubt that the overall picture for the malt whisky industry is a positive one.

The Scotch malt whisky category continues to rise steadily. According to the report, the sector grew in volume by 5.2% in 2006 to stand at just over 6m cases, making it worth an estimated US$2.4bn. Moving forward, just-drinks and IWSR estimate that volumes for 2007 are expected to reach 6.3m cases and by 2012 they'll hit 7.5m cases. Malt's growth comfortably outpaces that of blended Scotch, which is up 2% per annum over the same period.

This rise is mirrored in the performance of most of the major malt brands. Glenfiddich remains the category leader, rising by 5.8% year-on-year selling just under 1m cases, with predictions that the 1m case mark will have been topped in year ending 2007. The_Glenlivet has grown strongly with a 13.2% rise year on year, while The_Macallan has risen by 15%.

There have also been strong performances from smaller bases by brands such as Bowmore, Highland_Park, Balvenie and niche players such as Arran, Bruichladdich, Speyburn, Old Pulteney and others. And actually, in many cases, it is this upswell of smaller brands that is giving the category its vigour, and, coupled with the strong top three this is where the momentum is coming from.

The evolution of the category is also showing a continuing shift to premium. The bottom-end blended malts are likely to come under pressure as stocks tighten, forcing the base price up. It is also noticeable that distillers whose single malts play in the mainstream market are looking to maximise the value on their brands and are starting to edge prices up.

But though the overall category looks in rude health the picture at a market-by-market level is more confusing. Whilst the BRICM markets continue to show great promise, Spain and Japan show positive signs and Taiwan is up 16%, other markets perform with less success.

The US remains something of an enigma to malt whisky with the category really not reaching full potential in the world's leading premium spirits market, whilst France and the UK remain sluggish, with success reliant on the effectiveness of discounting at key times of the year.

Within the brands too, the picture isn't quite as clear cut as first you'd think. Yes there have been many successful new entrants and the top three brands are performing well, but when the top ten is examined, it is clear that these top three brands are moving faster than the category, as such some other brands have not been so successful.

Malt whisky it should also be noted still only accounts for 7.3% of the total Scotch whisky market and these statistics give rise to the question of whether malt whisky can be even be regarded as a true spirit category.

Can malt, in volume terms, be said to be the equivalent of premium vodka for example?

If malt is to grow, it is perhaps time that it both distances itself from blended Scotch and establishes itself as a separate premium spirits category with a wider competitive set. This however, will not be easy as there are still challenging hurdles to be overcome, not least the issues of pricing, image and stocks.

Work still needs to be done to try and drive price and value up in the UK and France, while the US remains a market of untapped potential.

Malt is evolving and is in a healthier position than it was two years ago with stronger brands and a more diverse number of players. But, in many ways the battle is now just starting.

As one industry source said: "Malt has developed as a category, but has only done so mathematically". In other words it has benefited from a varied set of situations where people have either turned against blends or found a new fashionable drink. The issue is now how to build brands.

There is little to suggest that the continued fragmentation and variation of message that so dominates the industry at present will not continue for the forseeable future, with some brands choosing to market their brands as 'luxury' products, whilst others reinforce the provenance of the liquid while finding new brand-centred ways to differentiate themselves from all the others who have chosen the same route.

There are dangers in both: the over-extending of the luxury notion could bring about a subsequent loss of identity, whilst the sameness of the production-oriented strategy could lead to weak brand identities.

This fragmented look is either exciting and vibrant, or worryingly vague for those who long for an over-arching idea to bring an element of coherence to the sector.

Perhaps the big, over-arching idea is education, making an overly complex category simple and understandable.

Despite all the brand owners we talked to for this report mentioning education, they also agree that the majority of consumers do not understand what single malt is. Malt, despite being undervalued, is still at a high price point and is a risky purchase for many consumers. It might be time for the industry to accept that shifting the public consciousness is not the job of each brand, but a collective responsibility.

This is an extract taken from a speech given by just-drinks at the recent World Whiskies Conference to mark the launch of the 2008 Global Market Review of Malt Whisky . For more details of the report visit: http://www.just-drinks.com/maltwhisky/

15 Apr 08

GLASGOW, Scotland - (Business Wire) Beam Global Spirits & Wine, Inc., a global leader in premium spirits and a unit of Fortune Brands, Inc. (NYSE:FO), celebrated the recent growth and successes achieved by the employees of Ardmore® Distillery yesterday with a visit from Tom Flocco, president and CEO. Employees were bestowed with awards honoring their tenure and vision and also received recognition for recent accolades and achievements.
At the heart of the Ardmore Distillery lies the passion of dedicated employees and their commitment to upholding quality methods of traditional distilling. Flocco recognized the service of Ardmore employees by presenting awards for outstanding tenure at yesterday’s ceremony held at the Aberdeenshire facility. Douglas Lewis received a service award for his 38 years at Ardmore, the longest serving tenure in the distillery’s history. A second service award was presented to three generations of Grant men, Gordon Grant Jr., Gordon Grant Sr., and Charlie Grant, for their combined 100 years of service at the distillery.

Beam Global Spirits & Wine regularly honors employees who stand out as extraordinary examples in bringing the company’s vision, Building Brands People Want to Talk About, to fruition. At the ceremony Flocco presented a company vision award to the Ardmore Single Malt team for their work creating Ardmore® Traditional Cask, which launched in 2007.

“We commend the Ardmore Distillery for their accomplishments and each employee who has helped pour over 100 years of tradition into every bottle of Ardmore Traditional Cask,” said Flocco. “Our success could not have been achieved without their unshakable belief in tradition, quality and craftmanship.”

Flocco was also on hand at the Ardmore Distillery to celebrate the receipt of a Gold medal from the 2008 San Francisco World Spirits Competition in its inaugural year in the United States. The international competition is held annually and inspires more than 800 spirits entries from around the world. Judging occurs after blind taste tests and medals are awarded based on taste alone.

The launch of Ardmore came in direct response to consumer demand and has been well-received among influencers, consumers and distributors alike. Due to market demand for Ardmore Traditional Cask, the Ardmore Distillery is now operating at record production levels with 2007 production up 38 percent from its past record production year in 2005.

Formerly produced as a “fingerprint malt” for the internationally renown Teacher’s® Highland Cream Blended Scotch whisky, Ardmore Traditional Cask was released in the United Kingdom and Duty Free markets in the fall of 2007 and entered the U.S. in March 2008 as the first ever widely available single malt whisky from the Ardmore distillery. For more information visit the Ardmore website at www.ardmorewhisky.com.

Source: http://www.earthtimes.org/
15 Apr 08

Strong Growth

We are pleased to report continued strong growth for the year ending 31/12/2007

Results for the year to show a 58% increase in profit before tax, up to £831,000 with Single malt sales increasing by  34% (against average industry growth of 3%) helped by intriguing new bottlings  such as PC7, Redder Still, the Eighteen, Murray McDavid and the Renegade Rums.

Group turnover  grew by  28% to £6,864,000. The strong performance continues the improvement in both turnover and profitability achieved since the distillery was  resurrected in 2001.

Gross profit margins remain constant, while earnings before interest, depreciation, tax and goodwill rose 37% to £1,535,000. 

During the year, a new warehouse area - the Vatican - was built  to facilitate bottling efficiency and cask filling operations. Despite high barley and oil costs,  distillation volume increased by 10% to 700,000 litres of new spirit, from  8 different barley varieties grown on 16 farms, malted at four peating levels, and with  3 distillation techniques employed.  Together with £725,000 of bulk whisky acquired our whisky stocks rose to £13.7m. at today’s value.

MD Mark Reynier said: “We are very pleased with these results which are a credit to the whole  company - a true team performance. There’s a growing demand for quality, variety and originality which we certainly intend to be at the forefront of satisfying, as  customers will see later this year when the exciting new bottlings with stunning new packaging are released.”

“Our profits are entirely reinvested in more stocks and improving our operations. One investment currently under way is Tropos, a  fancy £250k fully integrated ‘enterprise resource planning system’, which as we continue to grow will help in the coordination of information vitally necessary when  all operations  from barley to bottle take place  here on the Isle of Islay, before exporting around the world.”

“We are progressive Hebridean distillers where quality, provenance and purity are the driving force behind these successful figures. The proof, so-to-speak, is in the pudding.”

Source: www.bruichladdich.com
15 Apr 08 First Minister is made Scotch whisky ambassador
Author: Emma Eversham
The Scotch whisky industry has made Scotland’s First Minister Alex Salmond a Keeper of the Quaich.
Salmond was inducted as a new keeper with 39 others at the industry’s annual banquet at Blair Castle in Blair Atholl last night.
The Quaich is a traditional drinking vessel of Scotland that is traditionally filled with whisky and passed around at parties and clan gatherings.
There are currently 1,800 members of the society in 82 countries who work to promote and protect the future of Scotch whisky. Members can only join if they are invited and must have a positive record of association with Scotch whisky.
“The global character of the Keepers of the Quaich is a true reflection of the international appeal of whisky. Scotland’s whisky is not only an excellent ambassador for the quality and distinction of Scotland’s produce, it plays a vital role in sustainable economic growth,” Salmond said at the ceremony last night.
Salmond said Scotch was vital to increase economic growth in Scotland. The industry employs 41,000 people and exports contributed £2.5 billion to the economy last year.
He said: "My government fully backs the Scottish Whisky Associations’ push for greater legal protection in order to protect this iconic Scottish product in the global market.”
The World Whiskies Conference kicked off in Glasgow today. The two-day summit is designed for those who work in the whisky industry and help them increase sales. http://www.wine-spirit.com
15 Apr 08

UK: Glengoyne launches Father’s Day gift pack15 April 2008 | Source: just-drinks.com editorial team

Glengoyne is launching a limited edition gift pack across the UK marketplace in time for Father's Day (15 June).
The gift includes a bottle of Glengoyne Ten Years Old and a stainless steel Glengoyne branded cigar flask and collapsible cup.
Available from May, RRP in the UK is GBP39.99 (US$79) and will be sold in most whisky retailers or online at www.glengoyne.com.

08 Apr 08

Glen, Canadian whisky don’t mix
Federal court sides with Scotland in dispute over name of C.B. distillery’s product
By BRUCE ERSKINE Business Reporter
Tue. Apr 8

IT’S ENOUGH TO drive a company to drink.

Nova Scotia-based Glenora Distillers (International) Ltd. announced Monday that the Federal Court has overturned a ruling of the Trade-marks Opposition Board that allowed the company to register Glen Breton Rare, the name of its single malt whisky, under the Trade-marks Act.

"It appears that the decision is based on a conclusion that the word glen can no longer be used in Canada as a registered trademark for whisky, unless it is a scotch whisky," said disappointed distillery president Lauchie MacLean.

"This decision could have serious economic ramifications for Glenora Distillers."

Glenora vice-president Robert Scott said the company will review the ruling for grounds to appeal. "Make no mistake, we will be appealing this decision," he said.

Glenora, which operates a distillery and inn in Glenville, Inverness County, markets Glen Breton Rare as the only single malt whisky made in Canada. The business, which employs about 30 people at peak season, was recently commended in two categories, innovator and visitor attraction, by Whisky Magazine.

The company has been embroiled in a protracted legal battle dating back to 2001 with the Scotch Whisky Association of Scotland, which opposes the use of the word glen in the whisky’s name on the grounds that it confuses consumers into thinking the whisky is from Scotland.

In January 2007, the Trade-marks Opposition Board allowed Glenora to use the Glen Breton Rare brand name after ruling that the whisky association’s evidence failed to support its claim of market confusion.

The association subsequently appealed that ruling to the Federal Court, which agreed with its assertion that the use of the word glen creates confusion in the marketplace, said Mr. Scott.

"It’s based on the word glen," he said in an interview on Monday, noting that single malt whiskies produced in Ireland, India, Wales and the United States haven’t run afoul of the whisky association because they don’t use the word glen in labelling or marketing their products.

Glenora is careful not to use the word Scotch in connection with its whisky, but Mr. Scott said the word glen is commonplace in Cape Breton and the company shouldn’t be prevented from using it.

"There are all kinds of glens," he said. The Glenville distillery is located near the communities of Glenora Falls, Glencoe and Glendyer, which were founded by early Scottish settlers.

The Scotch Whisky Association said in a release on its website Monday that it welcomed the Federal Court decision. As part of its argument to the court, the association filed evidence that included more than 30 instances of Glen Breton being described as Scotch whisky in Canadian retail outlets, newspaper articles, pricelists, menus and websites.

Mr. Scott, who wouldn’t disclose the company’s revenue or production numbers, said Glenora has little choice but to appeal the court ruling, given what the company has invested in branding, marketing and packaging its whisky.

"We’ve spent a lot of time and effort on brand recognition," he said, adding that the small company is concerned about its ability to con-tinue the fight with the whisky association, which represents many Scottish distillers.

"Lawyers are expensive," he said, suggesting that the Federal Court of Appeal is probably the firm’s last legal resort for retaining the Glen Breton name. http://www.thechronicleherald.ca

06 Apr 08

Delhi defers 30% tax rise for Scotch whisky

By RICHARD ORANGE
THE Delhi state government has pulled back from slapping a punitive new tax on imports of Scotch whisky after lobbying from the industry.
The proposal to impose an additional 30% tax on bottles of foreign imported liquor would have badly damaged Scotch whisky's ability to compete in India's largest regional whisky market.

But the Delhi state excise department had released no notification by last Tuesday, the start of the new financial year.

Sunil Mehdiratta, who led international spirits importers in urgent discussions with the Delhi authorities late last month, said: "I understand that they've not changed the taxes, so until further notification there will be no change."

David Williamson, public affairs manager at the Scotch Whisky Association, said: "The Delhi government has decided to defer any change to its tax treatment of imported spirit drinks, pending further discussions with the industry and state elections later this year."

Delhi's retreat marks the latest victory for the industry in its move to stop Indian states raising taxes at a local level to compensate for last year's slashing of national import taxes.

Last year Mumbai levied an additional 200% tax on imported spirits, but this was replaced by a tiered system after months of lobbying.

Two of India's mid-sized markets – the tourist enclave of Goa and Karnataka have hiked taxes. Goa this month doubled the import fee for imported spirits from 100 rupees (£1.26) per bulk litre to 200 for all bottles up to 1,500 rupees (£18.90). Above this price, the import fee is 300 rupees, damaging the competitiveness of many premium whiskies.

Karnataka has increased taxes on imported wine, protecting the local wine industry surrounding Bangalore.

Williamson said that while the SWA was working to ensure that India's states complied with the World Trade Organisation, its priority was on using this year's free trade talks between India and the European Union to cut import tariffs at a national level.

He said: "India continues to apply a basic customs duty of 150% on imported spirit drinks. While this is in line with India's WTO commitments, the rate is very high by international standards."

Before India cut its total tariff to comply with its commitments to the WTO, tariffs varied from 250% to 550%. In comparison, China's tariff is just 10% and Brazil's 20%.

Several rounds of talks are set to take place between Brussels and Delhi ahead of an agreement expected in 2009.

India ranks 21st in the list of the world's largest export markets for Scotch whisky, with total exports of £24.4m in 2006.

However, it is a potentially huge market, with the largest consumption of whisky in the world by volume.

The bulk of that is Indian whisky, which is made from molasses, which the SWA believes should not be classed as whisky at all. http://business.scotsman.com

04 Apr 08

French buy Speyside Cooperage

By JANE BRADLEY
A FAMILY-OWNED whisky cooperage in Banffshire has been sold to a French industry peer for about £8 million.
Speyside Cooperage, which makes oak casks for whisky at its plants in Aberlour and Broxburn, has been bought by Francois Freres Tonnellerie, after 60 years as a family-owned company.

Managing director Douglas Taylor said yesterday he and his brother William decided to sell the company because there were no family members who wanted to take on the business after their retirement.

Taylor said he would remain in his role for a "finite" period while the handover took place, while his brother was likely to stay working at the firm for the foreseeable future.

He added that there was likely to be "significant" investment in the firm by the new owners in the coming months.
All 57 staff are to retain their jobs.

Taylor added: "Francois Freres operates on an 'if it ain't broke don't fix it' policy, so they are not likely to make any major changes."
Also a family business, Francois Freres, which is based in St Romain, in the Burgundy region, was founded almost 100 years ago by the grandfather of the current owner, Jean Francois.

Francois told The Scotsman the Speyside Cooperage was the company's first major foray into Scotch whisky casks.
He said: "We hope the acquisition of Speyside will see us continue our growth and help us diversify. The acquisition is a very good fit for us – the business are very similar, being family-run." http://thescotsman.scotsman.com

29 Mar 08

WTO ‘discriminatory’ on Indian whisky
March 29, 2008
Gaurav Choudhury, Hindustan Times
New Delhi, March 29, 2008

India on Friday termed as “discriminatory” the attitude of the World Trade Organisation (WTO) towards allowing Indian whisky to be sold abroad.
“They (European nations) do not let Indian whisky be sold abroad because it is made of molasses and not malt. But the point is that it is the British who started producing whisky in India through molasses — not us,” Commerce and Industry Minister Kamal Nath said. “So, why are our products discriminated against?”

Nath said that the government is negotiating the issue with the Geneva-based world trade body and was hopeful it would be resolved soon.

That said, the government is addressing the issue of high taxes on wines and the spirits imposed by state governments. “The finance commission is addressing the issue,” he said.

The domestic industry felt that reduction in state taxes would be a step in the right direction, but the issue should not be mixed with the WTO’s definition of whisky.

“The central government should remove it from the state excise so that rationalization can be brought about,” said Sidharth Banerjee, MD, Kyndal India, distributor of wines, whisky and liquors.

In July last year, India withdrew the additional customs duty on imported wines and spirits in a bid to resolve the impasse with the EU and other leading trading partners over high duties.

A European Commission study had reported the medley of taxes and duties in some States in India was as high as 550 per cent on imported spirits and 264 per cent on wines, though basic import duties on wine and spirits were 100 per cent and 150 per cent, respectively. http://www.hindustantimes.com

24 Mar 08

Recipe for Confusion

Controversial new  laws will have profound effect  on the future of Scotch whisky.

The Department for the Environment Food and Rural Affairs (DEFRA) with the Scotch Whisky Association (SWA) are preparing far-reaching new regulations.

The stated aim is to protect Scotch and consumers. But  some feel it’s a smokescreen to further enhance the  commercial interests of a self-regulated industry.  

“New rules are to strengthen existing laws, protecting  whisky regions, targeting counterfeiters, and protecting consumers” says Bruichladdich’s MD Mark Reynier.

“Some are good rules, others more  disingenuous; consumers are to be  protected from counterfeiters only so they can be ripped off by the industry instead. 

The irreconcilable pressures of finite  whisky stocks and marketing muscle  has frustrated  large distillers’ ability to grow brands   - so they want  to fiddle the rules.

Confusing new whisky categories, mixing up well-known existing terms,  will drive a wedge between blended whisky at one end,   and exclusive single malt at the other.

By pushing single malts up on a pedestal,  a new category ‘Blended Malt Scotch Whisky’ (a bastardised term from ‘blended whisky’ and ‘single malt’) is to be made.

It’s a charter  for cheats and marketeers  to exploit gullible consumers as ‘Blended Malt’ will  be allowed to look almost identical to a Single Malt, even the same name.

Consumers misled in to thinking they are getting  a distinctive whisky from a specific, famous distillery may find it could be a total malt cocktail  from all over the place.

Clearly the new category should not in any way  be allowed to carry the name or presentation of a distillery. It also needs a clearly distinctive title that cannot confuse.” Received from www.bruichladdich.com

13 Mar 08

Darling defends whisky duty rise

Alistair Darling delivered his first Budget on Wednesday
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.


What is also important to Scotland is making sure that we get children out of poverty, that we help elderly people
Alistair Darling
Chancellor
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." http://news.bbc.co.uk

12 Mar 08

After 10 years of Gordon Brown freezing spirit duties, the scotch whisky industry said it was "dismayed" by Alastair Darling's first budget.

Darling disappointed the whisky trade with a rise in excise duty for all alcoholic drinks, including spirits, of 6% above inflation from midnight on Sunday.

It is a change in policy for the government. Gordon Brown froze spirit duties in all his 10 budgets, despite steady rises in tax levels on wine, beer and tobacco.

The move - decided upon following increasing concern at alcohol consumption in Britain, especially the scale of binge drinking - will see spirits increase in price by 55p a bottle. Duties will continue to rise by 2% above inflation for each of the next four years.

"Scottish distillers are astonished by the chancellor's announcement," the Scotch Whisky Association's chief executive, Gavin Hewitt, said.

"The government's own figures show that any duty increase on whisky is likely to reduce revenue at a time when public finances are tight.

"A tax rise is a blow to international competitiveness when the industry has been investing significantly to meet growing global demand for scotch whisky. It sets a damaging precedent that export markets may follow."

The increase was widely expected, but still comes as a blow to the whisky industry after the years of unchanged duty - the longest freeze for half a century, as Brown himself proudly pointed out in his last-but-one budget speech.

While the British Medical Association has welcomed the policy change, the Scottish National party vehemently opposes increased spirit duties.

The Liberal Democrat Treasury spokesman, Vince Cable, has also spoken out against it, saying whisky should not be considered in campaigns against binge drinking "when it is drunk in an entirely different context". http://www.guardian.co.uk

09 Mar 08

Scotch prices to soar as duty, demand and costs take their toll

By William Lyons
WHISKY prices are set to soar in the next 18 months due to a rise in duty and growing global demand from emerging markets.
Distillers warn that prices will have risen by 40% since 2005 and premium brands will command more than £30 a bottle next year as the industry grapples with an unprecedented surge in sales, rising production costs and an expected duty rise in Wednesday's Budget.

Own label prices have already halted their downward trend while mid-sector single malt brands, which were languishing around the £20 mark two years ago, are expected to exceed £25 by 2009.

Fraser Thornton, managing director of Burn Stewart Distillers, makers of Bunnahabhain and Black Bottle, says his firm is now distilling at full capacity, producing more liquid than at any other time in the company's history.

He said: "Historically we ran at 50% capacity but such is the uplift in demand that we are now flat out. But this is not unusual, this is the situation across the industry. There is now a huge upward pricing pressure facing the industry. When producers can export the volumes that we are currently seeing in bulk then they view pricing very differently.

"The days of Scotch filling the cheap brown liquid category are over. What we will see is an upturn in pricing from the own label upwards. In the UK market I can see 10% rises each year with the top end malts averaging £30 by 2009."

As revealed by Scotland on Sunday last month, the industry is bracing itself for the first increase in the excise duty on spirits since 1997. Although taxes on beer and wine have risen in line with inflation since 1997, spirits have been exempt from increases to protect the competitiveness of the Scotch whisky industry.

But sources say the Chancellor, Alistair Darling, is considering a plan to lift the freeze on spirits which has been in place since Labour came to po

wer, in a bid to tackle problem drinking. Darling has indicated that he believes price rises can play a part in a coordinated strategy to tackle alcohol abuse.

The level of duty is typically 33p on a pint of beer, £1.33 on a bottle of wine and £5.48 on a bottle of whisky. Each percentage point increase in next Wednesday's Budget would raise £40m for the Treasury from beer, £25m from wine and £5m from spirits. A rise of 1% in the duty on spirits would add 5p to the price. Analysts say a rise of 10%, which has been demanded by the Health Alcohol Alliance of doctors and charities, would add 54p to a bottle of whisky.

As well as growing demand from China, India, Russia and Brazil the industry is also facing rising energy costs, including the 50% increase in oil prices affecting transport and the cost of glass manufacture. Grain prices have also surged by as much as 130% since 2005. http://business.scotsman.com

05 Mar 08

Dram 'helps clean contamination'

A secret by-product from whisky is currently being tested
A by-product from whisky is being used by researchers in a bid to clean contaminated ground and waste water.
The team at the University of Aberdeen believe they have a new technique, potentially worth millions of pounds.

They say the Device for the Remediation and Attenuation of Multiple pollutants (Dram) has major potential in industry.

The Glenfiddich distillery in Speyside has helped researchers get to this stage by donating the by-product, the nature of which is being kept secret.

The University of Aberdeen said it was estimated that there were 330,000 contaminated sites in the UK.

These include former industrial areas, small dry cleaning firms, car servicing companies, large refineries and chemical plants.
The clean-up of contaminated groundwater is an absolutely massive global market
Dr Graeme Paton
University of Aberdeen

It is claimed early tests show Dram removes multiple pollutants simultaneously in a pioneering move that is quicker and more cost effective than current techniques.

The researchers are considering forming a spinout company to commercialise the technology, which could be licensed.

Dr Graeme Paton said: "Currently we are using the by-product of Scotland's most famous export but our technology can utilise other by-products from the food and beverage industry."The clean-up of contaminated groundwater is an absolutely massive global market."The technology that we have developed here at Aberdeen is environmentally friendly, sustainable and has the potential to put Scotland at the forefront for remediation technologies."

Scottish Enterprise has provided almost £300,000 of funding into the research via its Proof of Concept Programme.

http://news.bbc.co.uk
03 Mar 08

Highland distillery wins new lease of life after £5m deal

By Jane Bradley
PRODUCTION is to restart at a 133-year-old distillery in the Highlands after the business was bought by a Dutch investment firm.
The Scaent Group has snapped up the Glenglassaugh distillery for £5 million from owner Edrington, whose brands include The Macallan. The facility, which has been a contributor to Famous Grouse, Laing's and Cutty Sark blends throughout its long history, was mothballed in 1986.

The deal has been backed by £2m of start-up funding from Barclays Commercial's Scotland team, with the Scaent consortium contributing a further £3m. It is expected the reopening of Glenglassaugh, in the village of Portsoy on the Moray coast, will result in the creation of up to 20 jobs, with further plans to open a visitor centre there.

Scottish whisky expert Stuart Nickerson, who has been appointed managing director, said: "The start-up funding will cover running costs for the first year – we estimate it will take six or seven months to bring the distillery back to full working order. Glenglassaugh has the capacity to make one million litres of whisky a year and has high-growth potential.

"The product will appeal to malt collectors, those on high disposable incomes and target markets include eastern Europe."

Jonas Garbaravicius, Scaent group executive vice-president, added: "The whisky market is a booming sector within the Scottish economy and, after thorough due diligence, we recognised that the Glenglassaugh distillery had massive potential and was a perfect opportunity to bring a historic Scottish business back to life."

Glenglassaugh Distillery was founded in 1875 and has been closed several times – first from 1907 to 1931, then again from 1936 to 1959. Important alteration works took place before its reopening between

1959 and 1960. The production capacity was doubled during the same period. The Scaent Group, which was initially founded in Sweden, owns companies conducting business in 12 countries.

The group's core market is in the energy industry, although it has expanded in recent years to acquire companies in markets such as real estate and telecommunications.

The news comes as former distillery owner Edrington revealed it is to launch a £40m expansion of its The Macallan distillery to meet growing demand for the brand.

The deal will increase output at the facility by more than 30 per cent to more than eight million litres of alcohol a year.

Pernod Ricard is also looking to expand its Glenlivet distillery, while drinks giant Diageo has unveiled plans to invest more than £100m in the Scotch whisky sector.

Exports of the popular drink have recently hit a record £2.5 billion. http://news.scotsman.com/

02 Mar 08

Inver House is Distiller of the Year

INVER House Distillers has been declared International Distiller of the Year at the influential industry-voted 'Icons of Whisky' ceremony in London. The Airdrie-based company beat off competition from Japan, Ireland, Canada, India, Sweden and the USA.
Inver House, who last year globally re-launched Balblair Single Malt as a super-premium 'vintage', first beat off competition in Scotland from Glenmorangie, Bowmore and William Grant, before claiming whisky's highest accolade over seven other global finalists.

Hankey Bannister, one the company's bestselling blend brands, also received recognition by winning 'Best Scotch Blended Whisky'.

Announced on the eve of the Whisky Live! show, the awards were created to celebrate the greatest whiskies in the world. http://news.scotsman.com/

Having had the opportunity to visit most of the distilleries of Inver House over the last two years, I am personnaly pleased to see that Inver House got the price. This is merited and I wish to congratulate them.

02 Mar 08

Edrington unveils £40m investment to expand Macallan whisky distillery

By William Lyons
EDRINGTON, the privately owned Scotch whisky group, has unveiled a £40m expansion of its Macallan distillery to meet growing demand for the single malt.
The deal, the largest single investment by the group in its 150-year history, will increase output by upwards of 30% to more than eight million litres of alcohol per year.

The news comes days after Pernod Ricard announced a major expansion of its Glenlivet distillery and after Diageo's revelation that it is to invest more than £100m in the sector.

The Scottish whisky industry is booming, with exports hitting a record £2.5bn, while sales of The Macallan have almost doubled in the last five years.

Group operations director Graham Hutcheon said the expansion would see the opening of a mothballed stillhouse as well as the creation of six new maturation warehouses and thousands of oak casks.

He said: "This is a tangible sign of Edrington's confidence in the continued successful growth of The Macallan and represents a massive commitment to our Speyside operations. This new facility will provide yet another firm foundation for the future. We must invest in new infrastructure that will allow us to increase our production capacity and sustain the brand's growth potential, as worldwide demand for The Macallan is at an all-time high."

The Macallan is now the number-two single malt Scotch whisky in the world by value. The latest figures show it now sells more than 500,000 cases a year, while its Fine Oak range has seen sales leap by more than 14% in the last year.

The first two warehouses will be completed later this year, with construction of the other four spread over the next five to 10 years.

The announcement rounds off a busy six months for the makers of the Famous Grouse, Highland Park and Cutty Sark. In January, Scotland on Sunday revealed that it was in discussions with an Eastern European consortium to sell its Glenglassaugh distillery at Portsoy in Banffshire for up to £3m. Earlier this month it announced a £200m takeover of the Dominican Republic's leading rum brand, Brugal.

Edrington, which employs around 800 people, is one of Scotland's largest private companies. Including Cutty Sark sales, the company puts itself at number four in size terms in the global Scotch whisky market, with a 9% share – behind Diageo and Pernod Ricard.

The group was founded by the Robertson family in the 1850s. It is now wholly owned by the charitable Robertson Trust. http://business.scotsman.com

01 Mar 08

Braeval Distillery will be re-opned in July 2008, it has been mothballed since August 2002. Hoping Chivas Brothers will release single malt bottles. They are also planning to expand their Glenlivet Distillery, adding a new mash tun, six stills and eight washbacks. Source: private

28 Feb 08

Pernod Ricard first-half profit rises 18 per cent
The Associated Press
February 28, 2008 at 12:58 PM EST
PARIS — Wine and spirits company Pernod Ricard SA said Thursday that net profit in the first half rose 18 per cent due to a strong performance from its premium brands and emerging markets.

The French company, vendor of brands such as Chivas Regal whisky and Beefeater gin, revised upward its full-year operating profit guidance, but the company made no comment on its current plans to acquire a vodka label.

Pernod Ricard has entered the bidding process for Swedish state-owned Vin & Sprits, maker of Absolut vodka, which the Swedish government is looking to sell. It has also been in talks for nearly three years to acquire the Russian vodka Stolichnaya, for which Pernod already has a limited distribution deal.

In a statement, Pernod said net profit for the first half of its fiscal year ended Dec. 31 rose to €588-million ($885-million U.S.) compared with €500-million a year earlier. The figure came above forecasts for €585-million.

Earnings before interest and tax in the first half rose to €966-million, up 15 per cent from €886-million a year earlier. That also topped forecasts, as analysts expected an operating profit from ordinary activities of €958-million.

Negative currency fluctuations — primarily the dollar and currencies tied to the dollar — reduced the growth of operating profit from ordinary activities by €49-million in the first half, the company said.

All geographic regions reported double-digit organic growth in operating profit from ordinary activities, with premium brands showing “spectacular” performances in emerging markets, Pernod outlined in the statement.

Pernod last month reported that its revenue in the second quarter increased 5.2 per cent to €2.16-billion, and in the first half rose 5.9 per cent to €3.71-billion.

In the earnings statement, chairman and chief executive officer Patrick Ricard said the increase in profit led the company to accelerate spending in advertising and marketing expenditure to boost its growth prospects.

“This enables us to revise upward, once again, our 2007/2008 full-year guidance and to aim at a growth in operating profit from ordinary activities of at least 12 per cent on a like-for-like basis,” he said.

http://www.reportonbusiness.com
26 Feb 08 Beginners guide to Speyside whiskies
Author: Wine & Spirit News Desk
What is it?
Speyside is the "golden triangle " of Scotch malt whisky as it contains the largest number of distilleries. Its boundary runs along the Moray Firth from (roughly) Nairn to Buckie and reaches inland in a rough wedge along the rivers Spey, Lossie, Deveron and their tributaries.
Why did it become so important?
Speyside was one of the centres of excellence which emerged during the smuggling era of the late -18th and early -19th centur ies. The high, rough lands around the river Livet offered protection to moonshiners and gave them access to hidden hill tracks, allowing them to make their hooch and transport it to market. At one point, it is said, there were 100 illicit stills operating in Glen Livet.
When licit distilling was reintroduced post -1824, Speyside boomed as the former moonshiners went legal. Its make also found favour with blenders from the 1850s onwards and a further expansion took place. Today, most blends will have Speyside malts at their heart.
So what's the style?
It's probably best to think of Speyside as making two styles: light and rich. The former encompasses delicate malts with a range of aromas that stretch from malty (Knockando) through fragrant (Linkwood) to grassy (An Cnoc, Cardhu) to gently fruity (Glenlivet, Glenfiddich).
The richer style covers deeper-flavoured malts such as Ben Riach, Balvenie, Cragganmore and the beefy, dried fruit -accented Macallan, Glenfarclas and Mortlach. There's even some heavily peated oddities from Ben Riach - made for blending houses who didn 't have any Islay distilleries. Every home should have not just one Speyside but a range .
Can I go there?
I think you jolly well should. All of the major distilleries are open to the public, there's a working cooperage in Craigellachie, great whisky pubs (try The Highlander in the same village) and even a festival which runs from May 1-5. So what are you waiting for? http://www.wine-spirit.com
22 Feb 08

High-end beer, whisky drinkers feel the pinch
Liquor tax based on alcohol content weighs heaviest on their brews
By Tessa Wong (Singapore)
DRINKERS of premium beers and whisky are being hit hardest by the recent changes to the liquor tax.
The new tariff took effect on Jan 1 for beer and stout and on Feb 15 for other types of liquor. It taxes imported liquor based on their alcohol content instead of their volume.

This new regime is similar to those in countries such as Australia, New Zealand and France and will mean slightly lower taxes for most of the imported liquor here.

But the growing number of drinkers who enjoy a Belgian Trappist beer like Westmalle Tripel, for instance, will have to pay more.

Speciality liquors which have an alcohol content higher than the average in their class make up an estimated 10 per cent of the market here.

Their popularity is growing here, especially among the well-heeled. Three years ago, a beer connoisseur looking for a bottle of the Belgian beer Duvel had a choice of three bars. Now there are more than 10.

Whisky has also seen a spurt in interest. At least three whisky bars, which can have more than 50 different brands of the liquor, have been set up here in the last three years. More nightspots also offer the stuff now, according to importers. http://www.straitstimes.com

14 Feb 08

LONDON (Reuters) -By Dan Lalor

Diageo the world's biggest alcoholic drinks group, said it expects to hit 2008 forecasts after double-digit growth in Johnnie Walker whisky sales helped it to a 15-percent rise in first-half earnings. More on www.reuters.co.uk

12Feb 08

Pioneering spirit

Sally Gudgeon raises a glass to an exciting new industry.

AUSTRALIA has a young whisky industry but some of our drops are world class. Jim Murray is the world's leading authority on whisky. His Whisky Bible 2008 ratings for some Australian whiskies show he considers them among the best in the world. Malt whiskies from Bakery Hill, Lark Distillery and Tasmania Distillery score in the 90s (out of 100). For a modern industry that dates back only to the 1990s, they are spectacular scores, particularly when few of the spirits have reached their 10th birthday.

Whisky production is not new to Australia. Spirits arrived with the First Fleet, and Governor Bligh brought the first stills in the early 1800s. Illicit distilling is still around today.

The Corio Distillery in Geelong, established by the Distillers Company of Edinburgh, operated at a time when there was a worldwide shortage of whisky.

Norm Phillips, who worked there for more than 30 years and was general manager when the distillery closed in 1980, was told the brief from head office was to "make whisky no better than the worst in Scotland". This edict was followed religiously. In its heyday, a Corio and Coke was one of the cheapest shouts around, a rough, blended whisky not for the discerning palate.

These days the Scots are very supportive of the Australian industry and are willing to share their knowledge; Kristy Lark, of Lark Distillery, received a scholarship to Scotland to learn more about distilling. Australian whiskies haven't just made a favourable impression - Lark's method of peating malt without using sulphur has spread ripples of excitement around the Scotch Whisky Research Institute.

Lark Distillery was awarded four medals at the International Wine and Spirits Competition in London, making it the most-awarded Australian distillery at the 2007 show, with the Lark's Cask Strength Single Cask whisky achieving a best-in-class award.

And in 2007 at the World Whiskies Awards, Tasmania Distillery picked up a couple of gongs, too; Sullivans Cove bourbon maturation single-cask whisky was the Best Other single-malt whisky in the Malt Whiskies from the Rest of the World category, and Sullivans Cove Port maturation cask strength received a highly commended award in the same category.

Despite the accolates, when one considers the figures, there's no reason why the Scots should worry, as we pose little threat. The output from all the infant Australian distilleries is about 100,000 litres a year. A single Scottish distillery, Ardmore, for example, which is one of the largest, produces 4.2 million litres a year. Scottish whisky exports are worth ?2.5 billion ($A5.44 billion) a year.

With new export markets opening up in the BRIC (Brazil/Russia/India/China) nations, it seems highly unlikely the Scots will be left with warehouses full of whisky barrels they can't sell - and with luck it won't happen to the Australians, either.

The first barrels of Australian malt whisky were made in Tasmania by Bill Lark, affectionately known as the "grandfather" of the Australian whisky renaissance. A chartered surveyor by profession, he established Lark Distillery in Hobart in 1992 against the odds. Wife Lyn describes him as a "can-do" person. When he first planned to set up a micro-distillery, the Australian regulations decreed the minimum still size had to be 2700 litres, much too large for his boutique requirements. Not to be deterred, he lobbied tirelessly until the law was changed and he was able to install his first 20-litre still. He now has both a 600-litre and an 1800-litre spirit still.

Lark's success has inspired the establishment of other distilleries, in Tasmania and on the mainland. Lyn comments: "He doesn't guard his knowledge. He never runs out of patience."

Bill Lark says: "One distillery is a boutique affair. You require numbers to have an industry." And the numbers are growing. Tasmania now has five. Nant Estate and Distillery is due to open at the end of this month. And there is talk of setting up a Tasmanian whisky trail.

Around Hobart there's Tasmania Distillery, the Old Hobart Distillery and Mackeys Distillery. Hellyers Road Distillery in Burnie is by far the largest malt distillery, with a 60,000-litre wash still and a 30,000-litre spirit still.

The Nant Distillery in Bothwell in the Central Highlands will add further sheen to the Tasmanian whisky scene. The property has a magnificent homestead and a water-driven flour mill, which was built in 1823. Queensland businessman Keith Batt bought the property in 2004 and renovated it. The wheel of the mill is turning once more and will grind the barley into "grist" for whisky production. The millpond has been dredged, too, and Nant is probably the only distillery in the world with two platypuses on the payroll. Visitors will be able to view all the stages of whisky production and sample local and Scottish malts.

Encouraged by his visits to distilleries in Tasmania and burning with enthusiasm to disprove the notion that "the only place in the world that can make top-quality malt whisky is Scotland", David Baker established the Bakery Hill Distillery in the Yarra Valley. His first new-make spirit flowed in 1999. It was not an easy journey. Setting up a distillery is a costly business, yet he managed to do it on a shoestring budget.

Customs were initially tough on him. They were suspicious, not sure if he was a bootlegger or not, and were unconvinced he was capable of setting up a micro-distillery.

He released his first whisky in 2003 at the Australian Malt Whisky Convention, and it was well received. Murray is now giving him scores in the 90s for some whiskies, and rated both the Bakery Hill Classic Malt Cask Strength (barrel 2606) and Bakery Hill Peated Malt Cask Strength (barrel 14) a phenomenal 94/100.

There are some exciting malt-whisky developments in the west, too. Cameron Syme founded the Great Southern Distilling Company in Albany in 2004. Tourists can see the distillery in operation and sample the various spirits. Syme's first single-malt whisky, distilled by Tony Browne (a Scottish veteran with 14 years' experience), is due for release in February.

Syme has recently opened the Margaret River Distilling Company, which has an impressive cellar door and visitors' centre. Syme, a lawyer, is also head of the Australian Distillers Association, which was formed in 2005 to advance the industry's interests.

At the recent Australian Whisky Convention in Melbourne, he gave a highly articulate presentation on the future of the industry.

He emphasised the positive aspects but also mentioned "a few clouds on the horizon", the main one being the need for tax relief for boutique distilleries, along the lines of the concessions allowed for wineries and breweries.

Whisky is taxed at $65.56 a litre of alcohol (about $20 a bottle), which is the highest rate in the OECD. This high rate reflects the belief that high tax lowers spirit consumption, which is theoretically beneficial for public health.

However, RTDs (pre-mixed spirits and soft drink in a can) are taxed at $38.70 a litre of alcohol. Syme foresees many new distilleries opening in the next 10 years, but says a few will fall by the wayside, too.

He emphasises the importance of producing a high-quality product with its own identity, saying "we want to be appreciated in our own right as a premium whisky-producing nation". Good marketing is essential to this, he notes.

Getting the marketing right is something Patrick Maguire, director of Tasmania Distillery, understands perfectly. The new presentation of the Sullivans Cove whiskies exudes class, but what is in the bottle counts, too. Murray gave the six-year-old Sullivans Cove bourbon maturation malt the highest score for an Australian whisky, 95/100.

Maguire is focusing on export markets as well as sales in Australia. Sullivans Cove is exported to many different countries, including Britain, Holland, Denmark and Singapore.

He has found the Europeans are willing to try new whiskies and recognise quality when they taste it.

If the Europeans are the educators, the Asian markets tend to be the followers.

There's still a lot of work to be done overseas. But one thing is certain - we're producing some top whiskies that are well worth sampling. Just ask Jim Murray.

Malt Whisky - How It's Made

1 A single-malt whisky is made only from malted barley, water and yeast. Malted barley is barley steeped in water so it germinates, producing starch, which can be converted into sugar. To preserve this starch, the barley is then dried in a kiln to stop germination.

2 If a peaty note is desired in the malt, it will be infused with peat smoke during this process. The dried malt is then ground into "grist" in a mill and goes into a "mash tun", where hot water is added to create a sugar solution from the carbohydrates in the malt, a similar principle to making tea in a pot. After this, it is known as "wort".

3 The next stage is fermentation or "brewing". The wort goes into a vessel known as a "washback" (Scottish distilleries have six to eight of them) and yeast is added to start fermentation. After fermentation, the liquid is like beer without hops. It has an alcohol by volume (ABV) of 7 to 8% and is known as "wash". Some distilleries buy their wash from breweries; Cascade Brewery makes the wash for Sullivans Cove.

4 The wash is distilled in copper and the alcohol becomes concentrated to 21-28%, when it is known as low wines. The second distillation also takes place in a copper pot, when it emerges as a fiery alcohol known as new-make spirit, with an ABV of about 68%. It is then diluted with water and aged in oak for six to 10 years, often much longer in Scotland.

5 Malts made in Australia mature more rapidly because of the warm climate. The size of the barrel and its location in the bonded store also affects maturation time. Grain whisky can be made from any grain, usually in a continuous or coffey still. A blended whisky combines many malt and grain whiskies of different ages. Source: http://www.theage.com.au

05 Feb 08

New look Bowmore scoops prestigious design award

Following its recent re-design, Bowmore Islay Single Malt Whisky’s new look has scooped Gold Medal, the Trophy for Best Spirit Range and Trophy for Best Overall Spirit at the 2008 Wine & Spirit Design Awards announced in London today (1 February).

Designed by Glasgow-based Breeze Creative, the judges decided that Bowmore’s new identity underpinned the brands more premium messaging which in turn has increased awareness of the product and its range of expressions. 

The new packaging features an embellished glass bottle, taller than previously, and a balance of traditional Bowmore Distillery imagery with high-tech foil engraving on the label and outer tube. The logo style has been simplified to give enhanced presence in both the on and off trade international sectors.

Glen Moore, Bowmore brand director said:  “The interest in Single Malt whisky just keeps growing. It is important that the Bowmore packaging clearly and simply communicates the heritage, quality and positioning of a great single malt whisky. We’ve received fantastic feedback from international consumers and trade contacts and these awards add to its credibility.”

Established in 1779, the oldest distiller on Islay and one of the oldest in Scotland, Bowmore beat off stiff competition from other wine, beers and spirits to achieve the accolades.

The 2008 Wine & Spirit Design Awards judging panel comprised: Michael Rowe- Creative Director (Wren &  Rowe); Carl Gobie- Category Assistant  (Sainsbury's); Cheng Loo- Chief Executive, Wine & Spirit  trade Benevolent charity; David Williams- Head Editor of Wine &  Spirit and Jamie Stephenson- Bar buyer.

Other international awards achieved by Bowmore include the 2007 Best of Show and Double Gold Medal Winner for Bowmore 18 Years Old at the San Francisco World Spirits Awards plus Double Gold for the Darkest 15 Years Old and 25 Years Old. 

Bowmore Distillery recently launched an exclusive, limited edition bottle of the legendary Black Bowmore.   With only 827 bottles released, the extremely rare 42 years old expression is the oldest Bowmore ever released by the distillery and with a retail price of £2,000 all are expected to be snapped up by whisky collectors and connoisseurs around the world. www.bowmore.com

26 Jan 08

Inver House introduces AnCnoc vintage

Inver House has announced that its 16 Year Old AnCnoc Single Malt Scotch Whisky will launch later this month into "key international markets".

26 Jan 08

$18B TOAST RAISED TO SPIRITS OF AMERICA
By CLEMENTE LISI, Post Wire Services

January 26, 2008 -- Booze it up, America.
Liquor sales in this country climbed nearly 6 percent to $18.2 billion as more Americans bought more-expensive spirits last year like vodka and whisky, an industry sales group said yesterday.
The Distilled Spirits Council of the United States said that despite a weaker economy and higher gas prices, more Americans will continue to "trade up" to more expensive liquors over the next year.
The group said sales of the highest-priced liquors grew a whopping 12 percent in 2007.
Liquor stores in New York sell a 750-milliliter bottle of "Stoli Elit" for a whopping $75.
"When we look at where our sales were, once again, the higher-end the product, the greater the growth in our sales volume," David Ozgo, the group's chief economist, said at the Distilled Spirit Council's annual industry review in New York.
Among other patterns with American drinkers, the group also found:
* Vodka sales rose 8 percent to $4.3 billion.
* Whiskey sales climbed 3.8 percent to $5.2 billion.
* Rum sales rose 9 percent to $2.1 billion.
"Wines and spirits continue to grow well in excess of anything else in consumer packaged goods," Timothy Ramey, an analyst at Oregan-based D.A. Davidson & Co. told Bloomberg News yesterday.
Meanwhile, exports by US liquor companies increased 15 percent to $1 billion last year - driven primarily by the sale of whiskey, the group said. http://www.nypost.com

24 Jan 08 According to several sources, a new Ardbeg, Ardbeg Renaissance will be launed in June 2008.
16 Jan 08

UK: Diageo admits voting for own Scotch brands in Drammies

16 January 2008
Diageo has been forced to apologise to the organisers of a Scotch_whisky awards, for voting repeatedly for its own brands.

Kevin Erskine, the owner of thescotchblog.com, noticed earlier this week that a raft of votes for the upcoming 'Drammies' had been sent from the same URL, at Diageo. Speaking to The Guardian, Erskine said: "I noticed some of the votes were coming in with the same format, the same two addresses and the same votes. They were clever enough to use different names each time, but the URL was the same."

When contacted by just-drinks today (16 January), a spokesperson for Diageo said: "What we have here is an over-exuberant brand manager in the US who sent an ill-advised round-robin note to a number of his colleagues urging them to vote for our brands in the Drammies.

"We certainly don't condone this behaviour, and have apologised to the organisers of the Drammies."

Diageo's Johnnie_Walker Scotch brand has been nominated for a Drammie. Source:http://www.just-drinks.com/

13 Jan 2008

Whiskyfun is declaring the war on the whisky fakers!

On e-bay, an increasing number of ebayers, mainly from Italy, are saling fake whiskies and Whiskyfun.com has launched a war on whisky maker. www.whisky-news.com is fully suporting Serge's intitiative and please join us in our efforts! You can consult the excellent article of Serge on http://www.whiskyfun.com/war.html

11 Jan 2008

Black is back!
Bowmore launch limited edition Black Bowmore

An icon of the malt whisky industry is about to make an eagerly awaited return.  After much anticipation amongst whisky enthusiasts and collectors, Bowmore distillery, home to the oldest Islay single malt whisky has launched an exclusive, limited edition bottle of the legendary Black Bowmore.

With only 827 bottles released, the extremely rare 42 years old expression is the oldest Bowmore ever released by the distillery and with a retail price of £2,000 all are expected to be snapped up by whisky collectors and connoisseurs around the world.

Distilled on 5 November 1964, each bottle has been individually numbered by hand and is presented in silk screen glass and a beautiful wooden presentation case, reflecting many elements of the original Black Bowmore releases. 

Black Bowmore was originally released as a series of limited edition expressions over three years.  Two thousand bottles were released in 1993 at 29 years old, followed by a further 2000 bottles in 1994 at 30 years old and 1812 bottles in 1995 at 31 years old.  The ‘new’ Black Bowmore originates from the same 1964 distillation and is released at 42 years old. 

The original three have now reached iconic status amongst whisky collectors, with bottles selling at auction for 16 times their original retail price.  The new limited edition bottled are likely to follow suit, with a further two editions to be released over forthcoming years.

The name ‘Black Bowmore’ came from the deep dark colour of the whisky, imparted by the rich Oloroso sherry casks used in its maturation.  The precious spirit is almost ebony in colour, with incredible aromas of exotic fruits, ginger and cinnamon.  The palate is rewarded with hints of ripe mango, toffee and dark chocolate with the faintest hint of the smokey Bowmore signature. 

Glen Moore, Bowmore brand director said: “The release of the new Black Bowmore is very exciting.  We’ve been inundated with enquiries from collectors worldwide for months.

“The whisky reflects Bowmore’s ongoing commitment to traditional hand-crafted quality and rare limited edition releases.  It is quite simply an exceptional whisky that reflects the passion, skills and dedication of the craftsmen who have made it.”

To celebrate the release of 42 year old Black Bowmore, Bowmore Distillers will be offering web users the opportunity to win a bottle, absolutely free, on their newly refurbished website at www.bowmore.com.

The new edition to the Black Bowmore series is now available from the distillery, on Islay, and specialist retailers around the world.
04 Jan 08

KNIGHTHOOD FOR IAN GOOD
Ian Good, chairman of the Edrington Group, has been awarded a knighthood in the New Year's Honour's list for services to industry in Scotland.

Mr Good, 63, an accountant, joined Edrington in 1969, has served on the group's board since 1979 and been chairman since 1994.

The Glasgow-based group is best known for producing Scotland's best selling whisky, The Famous Grouse, and its drinks portfolio also includes Cutty Sark and premium single malts The Macallan and Highland Park. Edrington has 12 sites in Scotland, five of which are distilleries, and employs over 800 people. The group, founded in the 1850's, had a turnover of £278 million in the 12 months to March 31, 2007, and earned record pre-tax profits of £68.9m. It exports to over 100 countries.

Mr Good masterminded the £601m acquisition of Highland Distillers in 1999, which doubled Edrington's sales overnight. He has played a leading role in the affairs of the Scotch whisky industry, being a former chairman of the Scotch Whisky Association. He is also a former chairman of the Scottish Industrial Development Advisory Board. Source: www.edringtongroup.com

31 Dec 07

Scotch whisky to get more piracy protection
Reuters
LONDON: Scotch whisky is to be given greater protection against counterfeiting, under a consultation launched on Monday by the government.

The Department for Environment, Food and Rural Affairs launched the consultation on draft legislation that aims to strengthen the definitions of Scotch to help fight global counterfeiting.
The government aims to introduce the legislation in spring next year.

The Scotch Whisky Association (SWA) has said it can be fighting up to 70 court cases around the world at any one time against overseas manufacturers who use tartan designs or pictures of pipers on their packaging, or who give their whisky names which are supposed to sound Scottish.

The proposed regulations will strictly regulate the descriptions and geographical locations that can be used on whisky bottles.

Whisky will be strictly defined under one of five categories: single malt, single grain, blended, blended malt and blended grain.

Distillers will also be allowed to attach one of five regional names -- Highland, Lowland, Speyside, Campbeltown, Islay -- but will be barred from labelling whisky with the name of a distillery or a similar name if it is not a product of that distillery.

Des Browne, the secretary of state for Scotland, said: "Not only is Scotch whisky one of our most iconic products, it is also economically hugely significant with exports worth 2.5 billion pounds each year.

"Once the proposed legislation is enacted, Scotch whisky, and in particular, single malt Scotch whisky, will be defined by law in Scotland, the UK, the EU and nearly every export market around the globe."

Gavin Hewitt, chief executive of the SWA, which has helped produce the draft regulations, said the body's members would be "delighted" that the Scotch whisky industry's "international significance and important contribution to the economy have been recognised".

"The legislation will put in place a robust and comprehensive legal framework for Scotch whisky, improving its protection from unfair practices globally, and ensuring consumers receive clear and consistent product information," he added. Source: http://www.iht.com

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