UK. The Glenmorangie Company yesterday unveiled proposals for a £45 million investment programme which will focus on building the company’s premium single malt Scotch whisky brands – Glenmorangie and Ardbeg.
This strategy is a response to rapidly growing demand for these brands, and will be rolled out over a two-year period.
The investment programme will include the relocation of its headquarters to Edinburgh and the construction of a bespoke, state-of-the-art bottling facility in the Lothians area.
The new bottling plant will provide the capacity for a significant increase in production of both single malts to meet the demand for premium single malt whisky in growing markets such as Asia, Continental Europe and the US.
The company’s flagship distillery is also set to benefit. The business plans include a multi-million pound investment in Glenmorangie’s Distillery in Tain, Rossshire, where Glenmorangie was first created in 1843. In addition to the increase in distilling capacity, new whisky cask warehouses will be built and the Visitor Centre will be restyled, enhancing its attraction as a tourist destination.
Further development is also planned at the Company’s Ardbeg Distillery on Islay, off the west coast of Scotland. The Distillery and Visitor Centre will be further upgraded and new cask warehousing will be built.
The Glenmorangie Company Chief Executive Paul Neep said: “Our strategy is to focus on our premium single malt whisky brands to take full advantage of the rapid growth of single malts across the world. This plan represents significant capital investment by the company in Scotland. The brands will also be supported by increased marketing investment in their key markets across the world.
“We believe that these proposals will deliver long-term additional growth for both the company and also, importantly, for the local and wider Scottish economies.”
In order to concentrate on these future activities, The Glenmorangie Company proposes to implement a phased withdrawal from the bottling and sale of blended Scotch whisky.
The focus on premium single malt production will involve the sale of the existing Broxburn facilities. The Glenmorangie Company has signed a Heads of Terms agreement with Diageo for the sale of the 33-acre site. Glenmorangie will continue to operate from the Broxburn site over the next two years until it relocates to its new bottling facility.
In addition, the Glen Moray Distillery at Elgin – whose whisky is predominantly used in the company’s blended Scotch – will be sold as a going concern.
The company intends to consult fully on the plans to effect the transition of its business and will commence a consultation with staff and Trade Union representatives. It is anticipated that a number of jobs may be affected, said the company. Details of any changes required will become clearer during this consultation process.
The Glenmorangie brand is already outpacing the overall category growth for single malt whiskies, according to the company. The new Glenmorangie range was successfully introduced in September 2007. Ardbeg has also been growing well ahead of the market rate and was recently named “˜World Whisky of the Year – 2008′ by whisky expert Jim Murray in his Whisky Bible 2008.
ABOUT THE GLENMORANGIE COMPANY
Founded as Macdonald and Muir in 1893, The Glenmorangie Company today markets and sells its brands in over 150 countries worldwide. It currently owns three malt whisky distilleries: Glenmorangie in Tain, Ardbeg on Islay and Glen Moray in Elgin. Since 2005, The Glenmorangie Company has been part of Moët Hennessy, the wine and spirits division of LVMH Moët Hennessy Louis Vuitton.
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