Whyte and Mackay warn minimum pricing will "decimate" Scotch whisky industry

Published on Wednesday 10 March 2010 10:14

WHISKY giant Whyte and Mackay today warned that the Scottish Government's minimum pricing policy will lead to job losses.

The Glasgow-based company's managing director John Beard will face questions from Holyrood's Health committee today.

His submission to the panel warns that the proposal would "decimate" the Scottish whisky industry and would lead to the closure of the firm's bottling plant in Fife

The submission states: "We anticipate that our bottling plant in Grangemouth, which employs 200 people, would close.

"Our production levels would also be affected, so there would be a knock-on effect at our distilleries. Our best estimate is that another 100 jobs would be at risk.

"This will lead to significant job losses at Whyte and Mackay, across our distilleries, our bottling plant and our distribution centres.

"Whyte and Mackay, a company established in 1844, would essentially cease to exist in anything but name only."

Members of the Health Committee are considering proposals put forward by ministers to tackle Scotland's drink problem.

They will question Mr Beard on the issue this morning.

In his submission to the committee, Mr Beard said the firm was the leading supplier of own label whisky and added: "From our company perspective, we have no doubt that minimum pricing will decimate the own label market.

Mr Beard argued that a minimum price of 50p per unit could mean that own label whiskies would be in the same price range as brands such as Famous Grouse and Bell's and added: "That being the case, the role and need for own label products disappears altogether.

"As the leading supplier of own label whisky, this would be disastrous for our business."

The Scottish Government wants to introduce minimum pricing in its Alcohol Bill, currently going through Holyrood.

A figure of 40p per unit of alcohol has been used to illustrate what is possible, with a study by Sheffield University academics suggesting hundreds of lives could be saved, along with reductions in crime and alcohol-related illnesses.