Done and Dusted

Edrington has called in Lawrence Llewellyn-Bowen and transformed its slightly cluttered Victorian mansion into a stark, minimalist house.  But what happens when clutter is back in?

THE IDEA of spring cleaning is a pretty sound one (especially if someone else is doing it for you). It’s a once a year chance to get your house in order, to make a fresh start. Maybe the unseasonably warm weather that hit Scotland this year had a part to play, but this seasonal impulse has been taken to surprising lengths in recent weeks by Edrington (owner of Famous Grouse, Macallan, Highland Park and others) which has just sold two of its distilleries. That’s right. Two.

As floated here a few months back Bunnahabhain and Black Bottle have gone to the rapidly growing Burn Stewart, which was itself bought by Angostura.  I still reckon the firm should have been renamed Angustewart, but they’ve chosen CL Brands. Shows how good I’d be at business.

While the Bunna’ sale was the worst kept secret in the industry, few believed a secondary rumour that Edrington was also seeking a buyer for Glengoyne (along with its blend, Lang’s Supreme). Then, a week after the Bunna’ deal, Glengoyne was sold to broker/bottler Ian MacLeod.

Both moves are seen as good things for all concerned.  CL’s aim is to become a major player in rapid time and with Black Bottle it has a brand which, if handled correctly, could be a major international success, the only seriously peaty blend in a whisky world which loves smoke.

 Bunna’ itself is a cracking malt as well and the distillery is large enough to provide its new owner with good volumes of fillings.  Glengoyne is a perfect fit for a small firm; a bijou distillery 20 minutes from Glasgow – think of the tourist trade – and a lovely dram.  Its size means it will never be a major player, but should be a nice little earner.

Importantly, MacLeod has bought a working plant with no holes in its stocks, a problem which will have to be faced by Angus Dundee which, just as we were going to press, sneaked in under the radar to pick up the mothballed Glencadam from Allied.

The question remains why is Edrington casting off distilleries like a Scotsman gets rid of his clothes when the temperature hits 20°C? It can’t be City pressure as the firm went private some years back.  It appears to be trading perfectly healthily.

People have suggested it’s about amassing a war chest to go on the prowl, but for what? It’s unlikely it will buy another distillery.  Does it want more whisky brands? That makes little sense if it’s got rid of a potential moneyspinner in Black Bottle.  Buying other drinks brands? Unlikely.

Edrington is part of Maxxium and as a result has been forced to discontinue its Gloag’s gin brand.  Maxxium can only work if it has a portfolio of key global brands which won’t cannibalise each other.  One in each category is ideal.  I reckon the sale of the distilleries will be spent to start building Famous Grouse, Macallan (and conceivably Highland Park) into global brands.

Yup, it’s down to "focusing on core brands", though so ruthless has Edrington been in selling off its assets that there’s now nothing left bar the core. Grouse is safe.  The Bunna’ deal came complete with an agreement that CL Brands would continue to supply Edrington with fillings for the brand.

In classic neoliberal fashion, supply has been outsourced; a strategy which other distillers have pulled back from because, they felt, losing control of production could mean losing control of quality.

There’s a brutal commercial logic at play here.  If you want to play with the big boys, best cut away any excess fat.  Chivas might be the biggest player in malt these days but it too is focusing on just two of its brands, Glenlivet and Aberlour. CL will focus on Black Bottle and Bunna’.

The irony is that this leaves consumers in the mainstream market with less choice.  And will it stop there? Why should Edrington bother holding onto Glenturret? It could keep the Grouse centre and sell the plant and brand.  Tamdhu could be run simply as a malting plant – or closed.

Glenrothes could be sold on to Berry Bros.  If Highland Park doesn’t perform, could it go too? No. Surely not. Edrington, as far as I can see, has done more than a quick spring clean.  It has called in Lawrence Llewellyn- Bowen and transformed its slightly cluttered Victorian mansion into a stark minimalist house.   It’s fashionable, but what happens when fashions change and clutter is back in? But, hey, asI said, what the hell do I know about business?

Dave Broom is a spirits writer and the Glenfiddich Drinks Writer of the Year 2002