Consortium offers £3m for mothballed distillery

In yet another indication of the growing confidence in the Scotch whisky industry, a consortium of Russian and Latvian businessmen are aiming to buy Glenglassaugh distillery for an estimated £3 million. The Speyside facility, which is owned by Edrington, has been closed since 1986.

The Scotch trade enjoyed a terrific performance in 2007. Exports are booming, especially to key emerging economic powerhouses, and several brand owners have committed significant resources to developing new production facilities. This latest development underscores the confidence in Scotland’s most famous export.
Glenglassaugh is one of Scotland’s oldest distilleries, first producing spirit in in the Portsoy area 1874. It produced a limited quantity of coastal single malt, with the vast majority of inventory being used in blends including Famous Grouse, Cutty Sark and Laings.
A spokesman for Edrington has stated: “I can confirm that Edrington has received a number of enquiries that may or may not lead to a formal offer.” Unconfirmed rumours suggest that the most fruitful discussions have been taking place since last summer with an unnamed group hailing from Russia and Latvia. The source indicates that the consortium plans to purchase the distillery for £2-£3m, then invest a further £3m in restarting production and rebuilding the brand.

Ben Grant, 09/01/08