FOR the whisky maker behind renowned Scotch brands such as Glengoyne and Tamdhu, a slide in pre-tax profits is no barrier to ambition as it prepares to open a new distillery visitor centre in Falkirk and forges ahead with a new distillery on Islay.

Broxburn-based Ian Macleod Distillers next month will welcome members of the whisky-loving public to the historic Rosebank Distillery, painted a positive outlook as it unveiled 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, however, was 1% up on last year, at £1.6m.

Rosebank Distillery completes first production run in 30 years

The independent, family-owned company was unapologetic for hailing 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.

Meanwhile, the owner of Edinburgh Gin pointed to Laggan Bay Distillery in Glenegedale on Islay, a partnership with the Islay Boys, under construction and due for completion in 2025. This will be the west coast island’s 12th distillery and is due to be completed in 2025. So, surely Ian Macleod Distillers’ investment is a sign of faith in the future of the industry, despite a recent slowdown in markets such as Latin America and China.

Spirits giant Diageo, which sold the mothballed Rosebank to Ian Macleod Distillers in 2017, has also reawakened its Port Ellen distillery on Islay after four decades in mothballs – much to the delight of Scotch whisky aficionados who welcomed the company’s decision to restore production at the previously mothballed Brora Distillery in Sutherland in 2021.

Rosebank in Falkirk to open doors to public for first time

Indeed, in March, Diageo revealed that more than one million people visited its distillery attractions last year with its flagship Johnnie Walker Princes Street tourist attraction in Edinburgh welcoming 359,000 people in 2023.

So, Ian Macleod Distillers’ move to capitalise on the lucrative whisky tourism aspect of its business is a shrewd one. According to figures from the Scotch Whisky Association (SWA), more than two million people visited Scotch whisky visitor experiences in 2022.

While keen to appeal to build growth in its home market, 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.”

It particularly points 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.

Scotch whisky: New Rosebank Distillery release created from rare casks

The company has also 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.

No doubt there will be headwinds for Ian Macleod Distillers – and its competitors to navigate but with the SWA’s recent announcement that global export figures show the value of Scotch exports topped £5.6 billion in 2023, the West Lothian company’s strategy looks like it’s on track.