Glenmorangie to Invest £45 million

The Glenmorangie Company Unveils Plans for the Future with Multi-Million Pound Investment

The Glenmorangie Company has today (1st July 2008) unveiled proposals for a major investment programme worth £45 million, which will see the Company focus on building its highly successful, iconic premium single malt Scotch whisky brands – Glenmorangie and Ardbeg. This strategy is in response to rapidly growing demand for these brands.

The investment programme, to be rolled out over a two-year period, will include the relocation of its headquarters to Edinburgh and the construction of a bespoke, state-of-the-art, bottling facility in the Lothians area. The new bottling plant will provide the capacity for a significant increase in production of both single malts to meet the demand for premium single malt whisky in growing markets such as Asia, Continental Europe and the USA.

The Company’s flagship distillery is also set to benefit. The business plans include a multi-million pound investment in Glenmorangie’s Distillery in Tain, Ross-shire. In addition to the increase in distilling capacity, new whisky cask warehouses will be built and the popular Visitor Centre will be restyled, enhancing its attraction as a tourist destination. It was at the Tain distillery that the world-renowned single malt Glenmorangie was first created in 1843. Continue reading.....
Further development is also planned at the Company’s Ardbeg Distillery on Islay, off the west coast of Scotland. The Distillery and Visitor Centre will be further upgraded and new cask warehousing will be built.

Chief Executive of The Glenmorangie Company, Paul Neep, said: 'Our strategy is to focus on our premium single malt whisky brands to take full advantage of the rapid growth of single malts across the world. This plan represents significant capital investment by the Company in Scotland. The brands will also be supported by increased marketing investment in their key markets across the world. 'We believe that these proposals will deliver long-term additional growth for both the Company and also, importantly, for the local and wider Scottish economies.' In order to concentrate on these future activities, The Glenmorangie Company proposes to implement a phased withdrawal from the bottling and sale of blended Scotch whisky.

The focus on premium single malt production will involve the sale of the existing Broxburn facilities. The Glenmorangie Company has signed a Heads of Terms agreement with Diageo for the sale of the 33-acre site. Glenmorangie will continue to operate from the Broxburn site over the next two years until it relocates to its new bottling facility. In addition, the Glen Moray Distillery at Elgin – whose whisky is predominantly used in the Company’s blended Scotch – will be sold as a going concern.

The Company intends to consult fully on the plans to effect the transition of its business and will commence a consultation with staff and Trade Union representatives. It is anticipated that a number of jobs may be affected. Details of any changes required will become clearer during this consultation process.

The Glenmorangie brand is already outpacing the overall category growth for single malt whiskies. The new Glenmorangie range was successfully introduced in September 2007 to great acclaim. Ardbeg has also been growing well ahead of the market rate and was recently named ‘World Whisky of the Year – 2008’.