Glanglassaugh Distillery
Despite the financial blow delivered by the Chancellor on Budget day the Whiskey industry is going through a sustained period of optimism. Export volumes are reaching record levels with the equivalent of over 1 billion bottles shipped in 2006. Exports rose by 4% in value reaching almost £2.5bn, their highest ever with particularly high growth in Central & South America (+24%).
In an environment where almost no distilleries are changing ownership, with most producers trying to operate at maximum capacity at all their production facilities, the Glenglassaugh distillery presented a unique opportunity when it was put up for sale by owners Edrington.
The Highland-based Glenglassaugh distillery was built in 1875 but ceased production in 1986 following years as a contributor to famous Grouse, Laing’s and Cutty Sark blends. Since 1986 the distillery has lain dormant following the decision by Edrington to focus their attention on their key brands.
The Dutch investment house The Scaent Group expressed interest in the distillery but unfortunately this interest coincided with the start of the global credit crunch.
Stuart Nickerson who acted as a consultant on the acquisition and has been appointed as managing director said, “"Lochroe were instrumental in helping us to achieve a competitive funding package during a period when all lenders were facing challenging times globally. Their wide network of contacts meant that we could explore several options before making our final selection."
With the help of Lochroe The Scaent Group were able to secure secure funding for £5 million. The deal has been backed by £2 million of start-up funding by Barclays Commercial’s Scotland team with the Scaent consortium contributing a further £3 million. Glenglassaugh will resume production after 22 years and re-establish a 133-year old distillery. It is expected the reopening of Glenglassaugh in the village of Portsoy on the Moray coast will result in the creation of 20 jobs. Initially the new company will be selling older, remaining stocks with a longer-term plan of exporting Glenglassaugh products to worldwide markets and opening a visitor centre.
Jonas Garbaravicius, Scaent group Executive Vice President said, “The whiskey 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 an historic Scottish business back to life for future generations to enjoy.”
Article from The Scotsman - Monday 7th April 2008
Distillery welcomes recruitment coup
The Glenglassaugh Distillery which was brought back into operation following its acquisition by Dutch company the Scaent Group has appointed a former Glenmorangie man to run its operations. The Glenglassaugh Distillery Company has announced the employment of Graham Eunson as distillery manager. Eunson commented: "During my career I have had to oversee the closures of both Scapa and Glendronach distilleries. So the opportunity to breathe life back into a mothballed distillery of such iconic status was one I couldn't resist. Until now, I feel that I have very much been the custodian of existing brands. With Glenglassaugh I have the unique opportunity to make my mark on the whisky industry with a new exciting product." Company managing director Stuart Nickerson added: "Graham's experience will prove invaluable as we refurbish the distillery and start producing in a traditional way. It's a real coup for Glenglassaugh to attract someone of Graham's stature to join our team at such an early stage and demonstrates our commitment to produce a high-quality premium product for an ever expanding market." (The Scotsman)