The Northern Scot reported on Tuesday that Diageo’s Roseisle Maltings is pausing production due to the downturn in the Scotch whisky industry. Operations are to resume next summer, according to the Scottish paper.
“We continue to assess production volumes and will communicate future plans as part of the normal planning cycle,” said a spokesperson for the spirit conglomerate.
The Diageo spokesperson shared that the six staff members have been moved to other facilities within the brand’s portfolio. Diageo believes that it is committed to long-term growth within the Scotch whisky market, but it is managing “capacity requirements” with other whiskeys in its stocks.
Diageo is one of the heavy hitters within the scotch whisky world and operates 30 distilleries in the country. The brand’s portfolio consists of the legendary blended whisky brand, Johnnie Walker. Other prestigious brands associated with Diageo include Lagavulin, Port Ellen, Brora, and Mortlach.
The Drinks Business reports that more malting facilities are ceasing operations due to a softening demand. Baird’s Malt shared it would close its malting facilities indefinitely. The company has its roots dating back to 1978.
The outlet cited that the Scotch Whisky Association shared that additional pressures of duties weighed on Scotch brands, and rising costs of the tax of 14% over the last two years have put the industry at a “crossroads,” according to SWA Chief Executive Mark Kent.
About Roseisle
Roseisle Maltings opened in 1981, according to The Drinks Business. The company expanded operations into distilling two decades later. Roseisle Distillery was unveiled in 2010, and Diageo wanted a faciliity that had the ability to make many different types of whisky. The facilities feature seven pairs of stills with the versatility of switching out condensers. The aim here really is to create as many different whiskeys as possible for brands like Johnnie Walker.
According to Scotch Whisky.com, Roseisle Distillery faced plenty of controversy when it opened. Many employees at the smaller facilities worried Roseisle’s large production capacity would make it a sort of “whisky Death Star.” Yet this Speyside brand actually had smaller capacities than Glenfiddich when it opened.
Diageo appears to be optimistic about the longterm viability of scotch whisky, and maintains the move was to scale back until demand increases.
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