THE investment by The Glenmorangie Company in expanding its Ardbeg distillery is not only a vote of confidence in the prospects for Scotch, but also Islay itself.
Since it reopened in 1997, Ardbeg has become a core part of Islay’s whisky-producing charm. Known for its intense smokiness, the single malt has built an enviable reputation.
With the distillery close to capacity, the decision to build a new still house will certainly ease that, giving the brand the opportunity to take full advantage of the supply chain provided by its ultimate parent company Moet Hennessy Louis Vuitton (MHLV).
There’s a larger story here too – one of an industry increasing investment in the face of Brexit. With the fates of trade deals with both the EU and the remainder of the Scotch-drinking world unknown, it is a bullish approach.
Yes, it is a gamble, but the very nature of making a product which won’t be consumed for at least a decade makes whisky something of a futures market anyway. And numbers indicate demand is growing.
Last year Scotch whisky exports reached £4.36 billion, growing by a huge 8.9 per cent. Within this, single malt also reached new heights, contributing £1.17bn thanks to 14.2 per cent jump.
With those industry figures, and the company sitting on net assets of around £180m, it seems like a wise decision to increase capacity.
It also raises the question of whether the company will re-introduce its Baillie Nicol Jarvie blend, which was withdrawn when LVMH focussed on single malts.
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