Agreement funds construction of six warehouses at Tamdhu distillery
IAN Macleod Distillers is set to expand its warehouse capacity after securing a funding package with Bank of Scotland.
The deal will be used to fund the construction of six new bonded warehouses at the whisky firm’s Tamdhu distillery in Speyside, which was acquired from Edrington in 2011.
The new warehouses will increase the amount of spirit stored on the West Lothian-based firm’s own premises, a strategy which is expected to reduce costs.
The warehouses are expected to be brought into use in 2015.
Mike Younger, finance director at Ian Macleod Distillers, said the additional warehouse facility will provide storage space “appropriate to our sales demand”, supporting plans for growth and further export sales.
“Alongside our export and domestic expansion, we established our first overseas subsidiary in India in 2010 [which] gave us a foothold in this exciting growth market,” said Younger.
“This is an example of our broad strategy that has enabled us to service an increasing customer demand from emerging countries, including Dubai, Bahrain, India and Malaysia, whilst also supporting our customers in the traditional Scotch markets of Western Europe and the USA.”
Laurence Jamieson, relationship director at Bank of Scotland, said Ian Macleod Distillers’ potential for increasing exports “looks strong”.
“Demand for Scotch whisky in Russia, for example, is growing to the extent that it is expected to overtake the UK for consumption by 2016,” he said.
“Brazil is predicted to consume over 60 million bottles by 2016, a rise of over 40% from current levels.
“The Scottish whisky industry, as an integral part of the Scottish food and drink industry, has led the way in terms of generating increased export revenue in recent years.”