What sustainability means for Scotch whisky and its supply chain
As a long-standing supplier to the Scottish whisky industry, McLaren Packaging wants to help its customers make well-informed choices when it comes to sustainability. That is one of the objectives of Donald McLaren, managing director of the family business.
And it’s a company that knows about moving with the times, having travelled a long way since being established in 1979 by Donald’s father, Jim, to supply corrugated cases to whisky producers. McLaren Packaging is now a thriving manufacturer of paper-based packaging for the drinks sector and has more than 300 employees.
Over the decades, the firm, which has seven sites across central Scotland, has grown both organically and through acquisitions, while remaining independent. Donald has a background in engineering and previously worked for technology company Hewlett-Packard and consultancy Deloitte before joining the family firm.
On the evolution of McLaren Packaging, Donald says: “We’ve diversified and innovated over the years, but it’s always been in paper-based packaging. With the rise of technology and Silicon Glen in Scotland in the 1980s and 1990s, we pivoted from whisky to supply the electronics industry, including the likes of IBM, JVC and Mitsubishi.
“About 20 years ago we refocused again on Scotch whisky as it was coming into a good place. In the period since, Scotch has enjoyed a lot of growth, especially in premium, malt whisky which is where we target our packaging.
“When I joined the family business, 16 years ago, we had one site and 40 employees. Our turnover has gone from £8 million to £42m over that period. So, it’s quite a transformation. We’re a Scottish success story.”
And Donald was recently rewarded for these achievements, being named EY Entrepreneur of the Year in September. This unique global programme recognises entrepreneurial achievement among individuals and companies that demonstrate vision, leadership and success – and work to improve the quality of life in their communities, countries and around the world.
Judges named Donald as a winner on account of his achievements in developing and transforming the fortunes of the business over a number of years. Today about two thirds of McLaren Packaging’s business comes from the whisky sector and the rest from the wider drinks industry, where it holds its own in a market which includes large multinational packaging suppliers, such as Smurfit Westrock.
Donald explains how – in common with the whisky industry as a whole – his firm places great emphasis on sustainability. But, as he points out, the concept can mean different things to different people. “Sustainability is a hot topic and an interesting word, because it’s very broad and not very well defined,” he explains.
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“For some companies, it could mean a low carbon footprint, and for others it could be providing benefits to society. “Our business approaches sustainability in all its different forms. For example, we support our community. Some 3 per cent of our operating profits – nearly £200,000 a year – goes to a local charity in Inverclyde, The Newark Trust, which my brother Michael and I founded. It’s run at arms length from our business, and we commit funds to tackle hardship and disadvantage.”
The charity’s current focus is on fighting child poverty, assisting children and young people with disabilities, and supporting local communities across Inverclyde, where one in four children live in poverty.
Turning to customers and sustainability, Donald says there are also different meanings – it can be about low carbon, removing plastic, or being easily recyclable. “Sometimes these needs can be competing. It often takes more carbon to produce recycled material than make virgin-kraft material. We offer a range of solutions to our customers to allow us to align with their sustainability priorities,” he says.
“Our whisky customers have quite a difficult job on their hands because 90 per cent of Scotch is exported. Countries around the world where whisky is shipped to, for example North America, South America, Asia and Africa, all have different priorities and are at varying stages in their sustainability journeys.”
There is significant effort going into ensuring the end consumer can easily recycle their packaging – unless they want to keep it because it has the beautiful look people expect from a prestigious product. “
A lot of high-end, premium Scotch whisky is purchased as a gift, so the packaging has to fit with that experience, as well as protect the contents,” says Donald.
A trend at the moment, according to Donald, is a complete move away from plastic. This comes with its own problems as plastic and foam have technical properties that protect glass bottles. He explains that McLaren Packaging has the environmental advantage of being located in Scotland, where all single malt whisky must be produced and bottled.
“Transportation is quite a high contributor to carbon footprints, so it’s key that we are local to whisky bottling halls. “Being a Scottish supplier, our approach to sustainability is to be very open and clear and we share knowledge with others. We want to help our customers make well-informed choices about their packaging,” says Donald.
The company works in collaboration with its customers to ensure they have the knowledge to do the right things. “There’s a risk that companies make mistakes and get accused of greenwashing by making the wrong decisions and investments, so we take a very open approach,” he adds.
And McLaren Packaging’s direction is paying dividends, with the company scooping the Innovation in Packaging accolade at the Spirit Business Awards 2024 just last month. The awards celebrate and reward excellence across the industry, from retailers and distributors to marketers, brands, distillers and blenders. The Spirits Business judges stated:
“What stood out most about McLaren was its potential to seriously disrupt the spirits packaging industry with its sustainable, paper-based presentation tubes. The vertical perforation on the packaging tubes allows the paper body and metal base to be easily separated and recycled, while retaining a premium look and feel. McLaren Packaging’s design could be a game-changer for the spirits industry.”
Donald says: “We were really pleased to win the award for our innovation that makes it much easier for a consumer to recycle the packaging when it gets to their home. In another initiative, we now produce rigid boxes that are 100 per cent paper based, rather than including foam and magnets which aren’t good in terms of sustainability. These developments have been well received by our customers.”
The business clearly sets out its sustainability strategy, including a wealth of information on its company website where it explains its commitment to net-zero and its ethos of “Sustainable For Life”.
The firm places great emphasis on doing all its carbon removal in Scotland. “You can do everything possible in your business, such as installing solar, reducing your consumption of power, electricity and gas, and reducing waste. But, right now, with the technology available, you can’t remove all the carbon from your operations, for example, employee commuting and transport, “ says Donald.
“Our carbon removal is nature-based and done locally. While there might be other, often cheaper ways of removing emissions in other countries, we’re a principled company and do things properly.”
So far, McLaren Packaging has invested in woodland creation at two sites in Argyll and Bute, less than 35 miles from its production sites, to reduce its own carbon footprint over the long term, and help its customers achieve the same outcome. And, as part of its commitment to ethically source paper-based materials for its products, the company is Forest Stewardship Council accredited and has ISO14001 for its operational practices.
Donald also takes part in quarterly Confederation of Paper Industries committee meetings to input on sustainability to the wider UK packaging industry. And he welcomes moves by big whisky distillers to drive forward the sustainability journey, such as Diageo launching the first 70cl paper-based bottle as part of an on-trade trial for Johnnie Walker.
The biggest producer of Scotch has also recently produced the world’s most lightweight whisky bottle for its Johnnie Walker Blue Label Ultra – weighing 180 grams without the stopper – and has released the patent on how this was achieved. Summing-up McLaren Packaging’s philosophy,
Donald concludes: “Sustainability is something we’re genuinely passionate about, and we take it very seriously.”