The Hindu Business Line : Whyte & Mackay’s huge Scotch stocks help tide over shortage

Huge stockpile of bulk Scotch inventories has helped United Spirits owned Whyte & Mackay to tide over a severe shortfall of Scotch whisky globally, which has led to a steep increase in its price.

Scotch whisky prices have been rising over a period of time because of supply constraint and increase in raw material costs. But a spokesperson for United Spirits told Business Line that for Whyte & Mackay, the Scotch inventories of about 115 million litres has turned out to be valuable. Whyte & Mackay is one of the largest bulk Scotch producers in the world.

Global demand growing

A United Spirits’ spokesperson said that Whyte & Mackay is poised to take on any intermediate shortfalls with its huge inventories of bulk Scotch. “At a time when global demand for Scotch whisky is showing strong growth and prices are increasing rapidly, Whyte & Mackay’s bulk scotch inventories of 115 million litres are not only very valuable but allow United Spirits the opportunity to meet their own growing requirements for their brands in India,” the spokesperson said.

The spokesperson said that the Whyte & Mackay’s Invergordon Distillery near Inverness is one of the largest Scotch whisky distilleries with a capacity of producing 40 million litres of alcohol per annum. “This production resource will provide United Spirits with a perennial source of Scotch whisky to meet its global requirements in the future. In addition, Invergordon will remain a key strategic provider of bulk Scotch whisky to industry majors,” he said.

Scotland distilleries

Whyte & Mackay also owns four malt whisky distilleries in Scotland and a facility in Grangemouth, with a total capacity of producing 12 million litres per annum. The spokesperson said even though there has been an increase in production costs because of higher prices, it will factor out at the end of the five years when it is sold. Normally, Scotch is sold only at least five years after production.

Promising markets

The spokesperson said while the prices for Scotch are hardening, “the good news is that economies like India and China are very promising markets for Scotch manufacturers. The rising disposable incomes and exposures to global lifestyles present an interesting opportunity to introduce global labels”.

With the launch of Whyte & Mackay brands in India, United Spirits is poised to garner a significant share of the scotch market. Across the Whyte & Mackay range of blended scotches and Jura and The Dalmore single malts, United Spirits has launched 8 skus of various ages that will take on international competing brands at specific price points.

United Spirits also plans to introduce Vladimir Vodka apart from the rare and prestige range of Whyte & Mackay, Jura and The Dalmore, with ages above 40 years in India soon.

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Whyte & Mackay’s huge Scotch stocks help tide over shortage