AS historic Rosebank Distillery in Falkirk prepares to open its doors to the whisky-loving public next month, its owner Ian Macleod Distillers hailed the “entirely justifiable fanfare” that met the warehousing of its first new casks last July and pointed to continuing investment, including a new distillery on Islay, as its future-proofs the business.

However, the independent Broxburn-based owner of Scotch whiskies Glengoyne and Tamdhu, and Edinburgh Gin, revealed a drop in pre-tax profits to £33.8 million for the year ended September 30, 2003, from £42.3 in 2022. Overall group turnover was 1% up on last year, at £160.6m.

Ian Macleod Distillers, which acquired the mothballed distillery from Diageo in 2017, has invested millions of pounds to restore production at the site since reconstruction began in 2019. The company, in its strategic review for the year, noted: “After a project lasting eight years from conception, the first distillate from Rosebank for 30 years arrived in June 2023 and the first Rosebank casks, with an entirely justifiable fanfare, were warehoused in July.”

Rosebank in Falkirk to open doors to public for first time

It added that the reborn Rosebank Distillery was “fully commissioned and able to distil continuously at its designed capacity” by the end of the year, and outlined progress of other major projects with the Laggan Bay Distillery in Glenegedale on Islay, a partnership with the Islay Boys, under construction and due for completion in 2025.

Meanwhile, group distribution costs at the business, as a proportion of turnover, “held steady” at 11% – the same as 2022 – although overheads increased to 17.7% of turnover compared to 15.6% the previous year. The whisky maker noted: “The cause is a general increase in the costs of many of the group’s expense categories, a swing in the effect of foreign exchange differences and recruiting key staff ahead of the forthcoming visitor centre openings.”

In addition, construction of the visitor centre at the Edinburgh Gin Arches site, also expected to open this summer, continued throughout the year while a new head office complex – Peter Russell House – will “signal an increase in staff engagement and collaboration while raising the social equity of the group”. Ian Macleod Distillers said “the old office is too small and frustrated good working practices”.

The company, which also supplies secondary and private label cased product to the UK and international markets, alluded to “strong worldwide demand for packaged and bulk single malt Scotch whisky and the recent strength of the UK gin market”, noting: “As well as brand investments, the group invests significantly in operational assets and stock to support current and future growth.

“The company manages its whisky stocks to achieve an optimum balance between immediate sales and retaining stocks for the future,” it added.

Rosebank Distillery completes first production run in 30 years

“Particular attention is paid to Glengoyne and Tamdhu where the single malt brands contain sherry-matured single malt. This necessitates a significant investment in, and management of, expensive sherry oak casks and the company actively seeks trades of bulk stock with other Scotch whisky producers to assist with matching demand and supply.”

Ian Macleod Distillers also pointed to the “potentially important” Indian market where its subsidiary there provides “profitable business”, focusing on bulk sales to local bottlers and bottled brand sales in airport duty free outlets. A malt distillery is under construction in Una, Himachal Pradesh with spirit, once matured, to be sold to Indian-based spirit companies for blending.

“This will displace much of the supply of blended malt from Scotland and, in turn, increase the future availability of Scottish-produced malts,” the whisky maker confirmed. “There are also plans to create an Indian single malt brand once the inventory has matured.”

Scotch whisky distillers investing for the future

In addition, it declared that its Taiwanese subsidiary had a “successful second year” of profitable trading as it manages the sales and marketing of the company’s malt brands in the region.