Further shortages and delays impact whisky distilleries

Whisky distilleries are facing shortages of cardboard and glass as well as seeing the impact of a shortage of delivery drivers blamed on Brexit.

The shortages are causing delays to the time taken to get alcohol out to customers and have hampered plans to expand overseas.

Manufacturers are also facing increased costs per delivery, it was claimed.

The GlenAllachie Distillery in Speyside, which is spearheaded by Scotch whisky veteran Billy Walker, said the lead time for cardboard is now up to six months.

A spokesman said: “The growth of online shopping has resulted in cardboard being in much higher demand.

“This, coupled with the move away from plastic packaging by many firms in favour of more sustainable materials, means numerous companies are unable to access cardboard as freely and quickly as we previously could.

“The current lead time for cardboard is around six months which is double the normal rate.”

John Laurie, managing director of The Glenturret in Crieff, Perthshire, also noted that the pressure on cardboard supplies has been driven by the surge in online shopping during the pandemic.

But he also flagged issues arising from Brexit as a concern.

Mr Laurie said: “The shortage of cardboard has meant we were delayed in receiving our gift cartons, shipping cases and cardboard dividers, ultimately causing us to miss dates booked with bottlers and delay our annual launch by three months.

“Brexit has also caused complexities with receiving goods into the UK.

“Many EU-based glass and cork providers were having to adapt to exporting to the UK as a new territory, and the delays everyone saw at Dover went on a lot longer than we saw in the national press with lorry loads of goods getting turned away for even the slightest issue with paperwork.”

Mr Laurie said early indications are that The Glenturret’s input costs could have risen by as much as 10 per cent because of the supply chain disruption, with the shortage of HGV drivers playing a significant part.

He added: “We are in a very strange place just now – demand for single malt Scotch is globally high, we have the product, but the UK infrastructure has been eroded over the last few years and we are struggling to get our product to our customers.”

Meanwhile, one Scottish drinks company said supply chain pressures have undermined its plans to expand in Australia.

Liam Hughes, co-founder of the Glasgow Distillery Company, said: “Now the biggest challenge is we can’t get the glass to put it in the bottle.”

Mr Hughes said the distillery’s plans to launch its whisky in the US had been pushed back into early next year partly because of the glass shortage, though US tariffs and the pandemic were also factors in this regard.

He added: “It’s not just us. I’ve heard some horror stories where people say their cost of goods have gone up 20%. That’s a big number.”

ISSUES: Businesses are facing difficulties with expanding overseas as well as getting the product out to customers.