New distillery gets go ahead
The green light has been given to a second distillery to be built at the south end of the island.
The Isle of Arran Distillers Ltd has received planning permission to build the distillery, visitor centre and six bonded warehouses at Kilmory. Work could now start on construction of the first three warehouses by October and the distillery by February next year.
The news comes just days after the company posted impressive annual results, with 2015 showing a 25 per cent growth in net profit. Driven by a 16 per cent growth in brand sales and increased visitor numbers at the exisitng Lochranza distillery, the results, which are being filed with Companies House, are the latest in a succession of healthy profits reported over the last six years with a 130 per cent increase since 2010.
A spokeswoman for the company said: ‘We officially got confirmation this week that we have received planning permission for our new distillery. We are delighted and can’t wait to get started. What a great week so far.’
Meanwhile, a consistent and considered export strategy has also led to another year of impressive growth across more than 45 markets.
Flourishing
For the industry as whole, exports are under pressure with a 2.4 per cent downturn. Arran however is flourishing, with export representing 61 per cent of total turnover in 2015.
While France remained a core market, the tough US market made up 9 per cent exports with rising star Taiwan contributing 7 per cent of total overseas sales.
Despite an apparent struggle within the Scotch whisky industry to grow sales in such an established sector, Arran believes that its results represent a shift within the category and proof of the sustainability of their business model.
Currently celebrating its 21st anniversary, the distillery continues with a programme of ongoing investment. A new VIP blending and tasting building has been built at the distillery and was officially opened last month to welcome distributors from around the world and increase the focus on export sales.
Managing director Euan Mitchell said: ‘We are delighted with the results which renew our dedication to creating quality whisky with a story to tell. There is an undeniable consumer desire for authenticity, something which we can deliver as an independently-owned Scottish business. In contrast, three quarters of Scottish distilleries are in the hands of international businesses.
‘Our success shows that it is not only possible to survive in a challenging market, but to thrive. While the larger companies might be struggling, and that prompts a negative tone, we believe that the future for whisky is very promising.’
With visitor numbers to the distillery at Lochranza up to 85,000 (from 66,000 in 2014), the new centre will accommodate this increase in whisky tourism as well as increasing capacity to meet the rising demand for the Arran Malt.
Mr Mitchell added: ‘As we toast our 21st anniversary, we remain very buoyant about future prospects and confident that our success represents a positive outlook for Scotch whisky.’