Stories - BourbonSphere

Laphroaig’s Barry McAffer to Leave Islay

Native Ileach Barry McAffer has announced his plans to leave Laphroaig Distillery, where he has been the distillery manager since 2022. McAffer departs after 13… Read More

Native Ileach Barry McAffer has announced his plans to leave Laphroaig Distillery, where he has been the distillery manager since 2022. McAffer departs after 13 years at Laphroaig, where he rose through the ranks from the malting floor to assistant manager, and was promoted to distillery manager upon John Campbell’s departure at the end of 2021.

“It’s been an incredible journey, but now I feel the time has come for me to explore new opportunities beyond my native Islay,” McAffer said in a letter to members of the Friends of Laphroaig affinity group.

McAffer will remain at Laphroaig through next month’s Feis Ile open day. His successor has not been announced.

Edrington To Sell Noble Oak Bourbon

Six years after launching the Noble Oak Bourbon brand, Edrington has agreed to sell the brand to A21 Wine & Spirits for an undisclosed amount.… Read More

Six years after launching the Noble Oak Bourbon brand, Edrington has agreed to sell the brand to A21 Wine & Spirits for an undisclosed amount. Edrington launched the brand in 2018 for the U.S. market as a way to enter the premium Bourbon category.

Noble Oak started with a “double oaked” Bourbon finished in Sherry casks, and later added a Rye Whiskey to the portfolio, using whiskey sourced from MGP for both expressions. The move is expected to cement Wyoming Whiskey as Edrington’s flagship U.S. whiskey brand.

The brand made its reputation by pledging to plant a tree for every bottle sold, and has accounted for more than 1.2 million plantings in reforestation projects nationwide.

Nyetimber to Buy The Lakes Distillery

English wine producer Nyetimber plans to enter the whisky business with its acquisition of The Lakes Distillery in Cumbria. The deal, which values the distillery… Read More

English wine producer Nyetimber plans to enter the whisky business with its acquisition of The Lakes Distillery in Cumbria. The deal, which values the distillery at £71 million, is expected to close later this year after Lakes shareholders vote to approve the offer.

The all-cash offer comes at a time when the distillery is losing money, having reported a loss of £1.3 million in its last fiscal year. However, The Spirits Business reports the distillery has shown a gain of 35% in sales during the first seven months of the current fiscal year.

The distillery needed to raise additional capital over the next three years to fund increased production and expand distribution internationally. In what board members described as a “tough market for raising capital,” they concluded that the Nyetimber offer made the most sense.

Nyetimber CEO Eric Heerema said in a statement “We believe that this potential acquisition represents an opportunity for us to expand our capabilities, drive exciting new growth and support The Lakes in delivering on its ambition to be a globally recognised spirits brand.”

WhiskyCast has requested interviews with the principals in the sale, and this story will be updated as necessary.

Ian Urquhart: 1948-2024

Ian Urquhart, a member of the third generation of Urquharts to lead Gordon & MacPhail, has died at the age of 76. Urquhart passed away… Read More

Ian Urquhart, a member of the third generation of Urquharts to lead Gordon & MacPhail, has died at the age of 76. Urquhart passed away March 15 in Elgin, Scotland. He was the eldest son of “Mr. George” Urquhart, and led the company as managing director from 1990 until 2007, when he retired to become non-executive chairman of the family-owned firm.

Ian Urquhart was responsible for Gordon & MacPhail’s acquisition of the mothballed Benromach Distillery in 1993 and its subsequent refurbishment. He presided over the distillery’s reopening in 1998 during a ceremony attended by then-Prince Charles, and was on hand when the first spirit flowed from the stills at the family’s new Cairn Distillery in 2022.

Urquhart also served as chairman for many years of the family’s other enterprise, the cashmere producer Johnstons of Elgin. He and his brother Michael were honored with the Commander of the Order of the British Empire in Queen Elizabeth’s 2022 Platinum Jubilee honors for their services to the Scotch Whisky industry. Urquhart also received a lifetime achievement award from the Spirit of Speyside Festival, which he helped create 25 years ago.

Ian Urquhart is survived by his wife Nichola, his son Neil, who currently serves as non-executive chairman of Gordon & MacPhail, his daughter Jenny, his brother Michael and sister Rosemary Rankin, and five grandchildren.

Port Ellen Distillery Reopens After 41 Years

41 years after the venerable Port Ellen Distillery closed in 1983, an all-new Port Ellen distillery has opened on Islay. The project, seven years in… Read More

41 years after the venerable Port Ellen Distillery closed in 1983, an all-new Port Ellen distillery has opened on Islay. The project, seven years in the making, completes Diageo’s £185 million investment in upgrading its Scotch Whisky distilleries and visitors centers.

The centerpiece of the project is an all-new carbon-neutral still house with two sets of stills. One set replicates the original Port Ellen stills, while the second set will be for experimental projects.

In a statement, Port Ellen Master Distiller Alistair McDonald said “It is an honour to take up this
new position at the helm of an iconic distillery and build on Port Ellen’s pioneering past. Port Ellen
holds a very special place in the hearts of passionate whisky aficionados, and to see spirit flow off
these stills once again is an incredible moment for the Islay community and wider whisky world. We
are deeply committed to pushing the boundaries of Scotch through experimentation – I’m excited to
see what we can now create.”

Diageo announced plans to revive Port Ellen in 2017, along with the Brora distillery in the Highlands. Construction issues on Islay caused by the COVID-19 pandemic delayed the Port Ellen project by nearly two years. Port Ellen is the first new distillery to open on Islay since Ardnahoe in 2018, and is the island’s tenth working distillery.

Image courtesy Diageo.

Compass Box Founder John Glaser Steps Down

After 23 years, Compass Box founder and chief whisky maker John Glaser is leaving the London-based company. His resignation comes two years after Caelum Capital… Read More

After 23 years, Compass Box founder and chief whisky maker John Glaser is leaving the London-based company. His resignation comes two years after Caelum Capital took majority ownership of Compass Box, which has become known for its eclectic collection of blended Scotch whiskies.

“What I can say now is that is has been an incredible 23-year journey. And now it’s time to step away,” Glaser said in an email. “It’s not been an easy decision, but it’s the right time. It’s time to pass on the reins to the new management and explore other opportunities.” Glaser will continue to own a minority stake in the company, and deferred an interview request for the time being.

Glaser launched Compass Box in 2000 after leaving Diageo, and the company quickly became known for its quirky, yet excellent whiskies led by the original Compass Box release, the Hedonism blended grain whisky. Glaser will be succeeded as chief whisky maker by his apprentice, James Saxon.

“I have a great deal of confidence in James Saxon and I know he will continue to impress the world with the whiskies Compass Box releases,” Glaser said in his email.

For more on John Glaser’s history, watch our two-part WhiskyCast interview from 2018.

Links: Compass Box

U.S. Whiskey Exports Set Record in 2023

While most drinks industry reports have been full of bad news in recent weeks, a new report released by the Distilled Spirits Council of the… Read More

While most drinks industry reports have been full of bad news in recent weeks, a new report released by the Distilled Spirits Council of the United States shows U.S. spirits exports have recovered from three years of European Union tariffs. Exports totaled $2.2 billion in 2023, up 8% over 2022, while American whiskey exports increased by 9% to a record $1.4 billion. Whiskies account for 63% of all U.S. spirits exports by value and 34% by volume.

In a news release, DISCUS Vice President of International Trade Rob Maron said “The tariffs imposed from 2018-2021 as part of two separate disputes between the U.S., EU and UK have since been suspended or removed, presenting U.S. spirits producers with an opportunity to recapture lost market share in some of the U.S.’s largest export markets. Over the span of two years, American Whiskey exports to the EU surged by more than 60%, climbing from $439 million in 2021 to $705 million in 2023.”

The 27-member bloc represents the largest export market for American whiskey, followed by Australia ($121 million), Japan ($106 million), the United Kingdom ($86 million), and Canada ($76 million). Tariffs remain suspended until March 31, 2025 while Washington and Brussels negotiate a trade deal on steel and aluminum exports, along with a separate dispute over aircraft subsidies.

The emphasis on whiskey exports can also be found on a state-by-state basis. Tennessee was the number one state for spirits exports ($983 million), largely on the basis of global demand for Jack Daniel’s Tennessee Whiskey. Bourbon exports pushed Kentucky to the number two position at $505 million, while exports of rum and other spirits put Florida in third place at $338 million.

The full report is available here.

Scotch Whisky Exports Decline in 2023

In what industry executives describe as a “challenging year” for the spirits industry, 2023 proved to be a down year for Scotch Whisky exports. New… Read More

In what industry executives describe as a “challenging year” for the spirits industry, 2023 proved to be a down year for Scotch Whisky exports. New data released by the Scotch Whisky Association show a 9.5% decline in the value of exports during 2023 compared to 2022, which has been called an outlier year because of the boom in exports and spirits sales globally following the end of the pandemic. Volume declined by 19% year over year as consumer demand for spirits slipped given current economic headwinds.

Exports to the U.S., traditionally Scotch Whisky’s largest export market by value, were down by 7%, mirroring a report last week from the Distilled Spirits Council showing a similar decline in Scotch sales. The numbers are even worse when compared to 2019, which the SWA has used to compare pre and post-pandemic data, showing an 8.5% drop in value compared to that year. The U.S. was the only one of the top 10 export markets to show a decline in value year over year, which SWA leaders blame on global economic conditions and rising living costs for consumers.

Globally, Scotch Whisky exports were valued at £5.6 billion GBP in 2023, up 14% in value when compared to 2019. The volume of exports was down 19% from 2022, but showed a 3% gain over the 2019 numbers. The Asia-Pacific region was Scotch Whisky’s largest regional market by value, largely based on increased exports to China, Singapore, and Taiwan.

India, which the SWA and whisky makers have long targeted as a market ripe for expansion, showed significant declines in both value (down 22%) and volume (down 24%) from 2022 results. However, India showed strong increases in both volume and value from 2019, with a 31% gain in value and a 27% gain in volume.

More details on the report are available here.

U.S. Spirits Sales Flat in 2023

U.S. spirits producers turned in a flat performance in 2023, according to new economic data released today by the Distilled Spirits Council of the United… Read More

U.S. spirits producers turned in a flat performance in 2023, according to new economic data released today by the Distilled Spirits Council of the United States. While distilled spirits maintained their market share accounting for 42% of all beverage alcohol sales, sales only showed a 0.2% gain with a 1.2% gain in volume.

Irish, Single Malt Scotch whiskies, and Canadian whiskies took the largest hits, dropping year-over-year in revenue growth by 19.4%, 8.4%, and 5.9% respectively. This is significant, since the U.S. represents the largest market for Irish and Canadian whiskey sales and one of the largest markets for Single Malt Scotch sales.

“There is a disconnect this year for many categories between shipments and retail sales. If you look at some other Irish whiskey data from NABCA, which shows data for 17 control states, Irish whiskey retail sales are down by only 2.2%, said DISCUS chief economist Hasan Bakir, noting that the year was also a major one for depletions, or sales of existing inventory built up during the pandemic-fueled boom years of 2021 and 2022.

Bourbons and other American whiskies continued their strong performance, turning in a 3.8% increase in revenue to an annual total of $5.3 billion. The sector remains one of the fastest-growing segments of the beverage alcohol market, trailing pre-mixed cocktails and spirits-based ready-to-drink products, tequila, and blended American whiskey. However, overall whisky sales across all categories were down by 2.2% as consumers traded down following several years of gains for higher-priced whiskies.

“What we saw in 2023 with financial and economic factors was a different sort of slowing down as consumers took stock of where they were,” said Marten Lodewijks of IWSR Drinks Analysis. “They were dealing with record credit card debt, they were dealing with high interest rates, inflation, prices being pushed through the system, global uncertainty in terms of wars popping up…so there was just a general negative sentiment in 2023 as consumers were quite clearly both saying and acting to be a little more conscious of where they were. I think now as some of the macro-economic fundamentals are starting to improve, inflation coming down, I would expect a return to the norm with continued strong growth in premiumzation,” he said on a DISCUS conference call with reporters.

One bright note from the presentation: American whiskey exports are up 64% year-over-year for the period from January to October of 2023, the most recent period for which data are available. This follows a 15-month extension of the European Union’s suspension of tariffs on American whiskey exports negotiated in December. The EU member nations account for 44% of all American whiskey exports, and grew by 29% in 2022 to $566 million, surpassing the pre-tariff record of $518 million set in 2017.

Bourbon Has $9 Billion Impact on Kentucky Economy

A new report estimates that the Bourbon industry has a $9 billion economic impact on Kentucky’s economy each year. According to the biennial report commissioned… Read More

A new report estimates that the Bourbon industry has a $9 billion economic impact on Kentucky’s economy each year. According to the biennial report commissioned by the Kentucky Distillers Association, that impact includes more than 23,000 jobs with annual salaries and benefits totaling $2.2 billion.

“Kentucky Bourbon is a $9 billion economic and tourism powerhouse for our Commonwealth, now generating more jobs, more payroll, more tax revenue, more tourists and more distilleries in more Kentucky counties than ever before, KDA President Eric Gregory said at a briefing at the state Capitol in Frankfort.

The state’s 100 licensed distilleries purchased 21 million bushels of grain from Kentucky farmers during 2023, accounting for 70 percent of their grain needs and providing what Agriculture Commissioner Jonathan Shell called a boon for farm families across the Commonwealth. “It’s areas of this state that have a hard time with economic development, but this is an area in which they’re able to help them with their local economies. With the distillers, the farmers, the people who work these fields and the people who distill these spirits, this is something that helps grow Kentucky a tremendous amount,” he said.

The industry accounted for $358 million in state and local taxes during 2023, up 180% from when the KDA’s first economic impact study was conducted in 2009. The industry also accounted for $1.9 billion in federal excise taxes – nearly 25 percent of the federal government’s entire revenue from alcohol excise taxes. In addition, Bourbon distilleries generated 2.5 million visitor experiences during 2023, leading to further economic growth in the hospitality sector.

The study was conducted again this year by University of Louisville professor emeritus of economics Paul Coomes and economic consultant Barry Kornstein. With Coomes retiring, the biennial studies will now be conducted by the University of Kentucky’s James B. Beam Institute.

The report is available to download here.