Whisky distillery Tullibardine hopes for improved US sales

Perthshire business invested heavily in its bottling plant

A decline in sales in America hit profits at Perthshire whisky distillery Tullibardine last year.

Turnover at the Blackford single malt maker declined by 5.6% to £18.9 million for the year ending December 31 2016 while the cost of sales rose by £1m compared to 2015. Pre-tax profits fell from £4.5m to £2.5m.

In 2011 leading French wine and spirits group Picard Vins & Spiritueux bought the business from a group of private investors who brought the distillery back into production in 2003 after it had been mothballed under its previous owners for 10 years.

Director Gabriel Picard said the company had made a major investment in its bottling operation last year and expected USA sales to return to their previous volume this year.

He said: “The company continues to invest in plant and machinery. The most significant item of expenditure in 2016 being the company’s bottling plant.

“It is expected that the full benefits generated by this will be reaped in the current year.

“Tullibardine is one of only a few distilleries in Scotland to distil, mature and bottle on site, thus giving complete control over the whole process.

“The distillery again operated at close to its maximum capacity throughout 2016 and it is expected to continue to operate at this level in 2017.”

Mr Picard added that while the impact of the UK leaving the EU was unknown the directors had no intention of changing their plans for the business in the immediate future.

Tullibardine is one of the oldest breweries in Scotland, dating back to the 15th Century.

In 1488 a young King James IV of Scotland stopped before his coronation to purchase beer from the brewery.

It moved to producing whisky in 1947, using water from the Ochil Hills.

The Tullibardine distillery has a shop and offers tours.