Isle of Arran Distillery set to double production

Published on Monday 7 June 2010 21:02

ISLE of Arran Distillery expects to post a profit in 2010 after narrowing losses last year and unveiling plans to double production to meet rising demand.

Managing director Euan Mitchell said pre-tax losses narrowed from 137,000 in 2008 to just 16,000 last year following tighter cost control and improved sales.

Turnover rose by 3.4 per cent to 2.1 million, while the distillery's visitor centre benefited from more "staycation" tourists on the island, boosting revenue by 13 per cent at the centre.

Mitchell said: "From the beginning of the year it was clear brand sales were going to be tough, with all markets affected to some degree by the global recession.

"Despite the weakness of sterling throughout 2009, our importers were reluctant to commit to stock while sales in the UK were badly hit by the collapse of our distributor, Malcolm Cowen. We are pleased to report the brand is experiencing growth with new partner Blavod Drinks."

But Mitchell said "significant gains" were now being made in the United States and in Norway, where Arran is the second-biggest selling malt by volume.

The distillery – which is marking its 15th anniversary this year – announced that Andrew Hogan has joined the company from the Bruichladdich Distillery as regional sales manager, with a focus on accelerating growth in North America.

The company also plans to release five whiskies this year, adding to its existing range which includes Arran single malt, Robert Burns single malt and Arran Gold cream liqueur.

Mitchell added: "With new appointments, new products being rolled out and a plan to enter and expand in new markets we have great scope for growth."