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Whiskiesl I WHISKY N L V L E Y R G a R R AY a REVIEW H FY C N SCOTCH O E whiskiesL I WHISKY N L V L E Y R G A R R AY A REVIEW EDITION 3 SPRING 1995 BRITISH WHISKY REVIEW? Being based in Inveraray, a sizeable proportion of the visitors to our shop in the Summer come from overseas and one of our lots is to try and explain why Scotch is dearer in Scotland than it is in the vast majority of countries. Explain- ing that it is the duty (and the tax on the duty) does not ease their bewilder- ment; why is such a tax levied on a Brit- ish product by the British Government? Answers on a postcard please. In November a confident Chancellor boasted that he understood the injustice of the tax regime on drink, particularly Scotch. However, hopes for a reduction in the rate of duty were little compen- sated by a third successive freeze. The following week a spiteful Mr Clarke Photo courtesy Customer Conniff lashed out a 4% increase in alcohol duty ‘INTRODUCTION TO MALT WHISKY’ WEEKENDS to plug a hole in his assumptions. Hosted by The Great Inn, Inveraray, the two night events include a guest tasting Last time the duty on spirits was raised, in the Magnificent Court Room of Inveraray Jail which should be a unique and Exchequer revenue reduced by £80m. truly memorable occasion. 19/20 May, 16/17 June and 14/15 July, price £125 all in. Spirits carry two times the duty of wine. Further details from The Great Inn, (not us!) telephone 01499 302466. Scotch, the indigenous British product, has been penalised at twice the rate BRUICHLADDICH of the imported product. While the H FY MOTHBALLED C N Chancellor argues in the European O E Union that discrimination in duty is In recognition of excess stocks within the L unlawful, he applies discriminatory industry and due to over-capacity of whiskies taxes at home. While the government production facilities, the Whyte & I N L argues around the world that British Mackay Group, following its acquisition V L £2.00E OFF!Y R G spirits (principally Scotch) should not be of Invergordon Distillers in 1993, has A R RAY A hampered by high taxes it applies some mothballed production at three of your next purchase of of the highest taxes by way of example. the newly acquired distilleries— cask strength whisky More perplexing is the degree of tax Tullibardine and Tamnavulin in the breaks handed out to “the City”— Highlands and Bruichladdich on Islay. certainly an important revenue earner The other four malt distilleries within LONG-TERM OFFER but now less than twice the size of the the group—Dalmore, Jura, Fettercairn Remember, all our independent cask Scotch Whisky Industry. and Tomintoul—remain operational. strength bottlings include a voucher Perhaps it would be better calling it The three mothballed distilleries remain worth £2.00 off a future purchase of a ‘British Whisky’. in trading and continue to provide ware- similar bottling. Very many thanks to all our custom- housing facilities for customers. The Offer applies to Cask, C, JM or S labels ers for a great Christmas spending spree single malts from these distilleries will of over 46%Alc. Does not apply to MH with Loch Fyne Whiskies and for your still be available for sale, as there are bottlings or those 46% and under. nice comments about the SWR; we hope sufficient stocks laid down for a number you appreciated the free delivery bonus. of years requirement. Once again, this edition is an exercise The four distilleries remaining opera- INSIDE THIS ISSUE... in distilling and condensing and we must tional within the group continue to Another great interview from an indus- think hard about the addition of more provide single malt whisky stocks, both try leader, our most common questions pages to accommodate the enthusiasm for bottling as brands and for inter- and some tremendous offers in conjunc- of contribution from the industry. industry trading purposes. tion with United Distillers. Read on. SCOTCH WHISKY REVIEW — LOCH FYNE WHISKIES, INVERARAY, ARGYLL, PA32 8UD PAGE 1 can actively market in any one place. In sales that we could expect? THE SALES MAN the UK we lead with the premium Are we creating an elitism about single Teacher’s and then the value for money malts that is putting potential entrants Stewart’s Cream of the Barley. Black off? Or have we got the prices so high Bottle which is linked to Laphroaig, is that so few people are prepared to take our super premium blend and a big the step of paying £25-30 for a bottle? player in Scotland but has yet to be That’s a of a lot of money to ask a new promoted in the English market. These consumer to pay to experiment, and it’s three satisfy the home trade. unfortunate that the tax element in Ballantine’s developed outside the UK, that price accounts for some 67% of the Teacher’s inside the UK and in the old total cost. Empire, Long John developed in West- LFW: Could it be that people think ern Europe and it is from those roots they don’t like whisky? that their strengths are today. It is our Well, quite often they don’t the first time great fortune that there is very little they drink it! But malts do come into conflict in how the histories of our core their own and there is a malt to suit brands have brought our portfolio to- every taste. Someone who is new to gether. Other brands such as Islay Mist whisky when faced with a Laphroaig have been sold off because we felt that may say “But this isn’t whisky! This is we could not devote sufficient funds, something else. Where have you been time or effort to the brand. Rather than all my life?” Or equally they may say let the brand and its history fade away, “Wow! Are you truthfully trying to sell we sold it to allow another company to this stuff?!” Andrew Dewar-Durie is Managing develop and expand. Director of Allied Distillers Ltd. If we tried to handle them all in which, after United Distillers, is one market it would inevitably lead to Scotland’s leading Whisky producer muddling the distribution chain and to “Creating an and exporter. us losing focus. Our brands are compli- Mr. Dewar-Durie found time in a very mentary to each other, not conflicting. busy diary to talk to Loch Fyne Whis- LFW: Brand price is sensitive. elitism?” kies for a wide ranging discussion on I believe that’s what gives our portfolio some of the complexities of Whisky mar- a large degree of strength. keting. Teacher’s is the number three in the UK LFW: Apart from Laphroaig, why with its price between Grouse and Bell’s. don’t you market many other malts? LFW: Please tell us something of The UK is a very tough market, and you Four years ago we marketed Laphroaig yourself and your company. see a number of instances where brand with Glendronach, Miltonduff and Allied Distillers is the flagship company market share rules. This has forced Tormore. Since then we’ve had a change of Allied Domeq which is a new producers to make decisions that they in policy. In order to maintain that all- company formed following the purchase probably would not like to make. They important focus we now have one last summer of the spirit company may talk up their market shares, but strategic brand and that is Laphroaig. Pedro Domeq by Allied Lyons. are they really getting the profit that I can’t resist telling you of our absolute Allied Domeq is concentrating on they want? Things are further confused delight with the brand; last year we saw retailing, and wines and spirits globally. with the various offers that come 23% growth in sales (better than the Allied Distillers (ADL) is the single in throughout the year. That’s why the market 17%) and it was awarded the largest component accounting for the current success of Teacher's, the fastest Prince of Wales’s Royal Warrant. That, majority of profit and turnover. growing premium brand, is very and a royal visit to the distillery last My background is as a salesman, an pleasing to see. June, was a big boost for all at ADL. export salesman in particular, and I LFW: Some may claim that all Our number one priority is to get that came latterly to ‘marketing’ when the brands are the same but with a strategic brand exactly where we want word came in to the language in the different label. it in terms of volume objectives and 1980’s! I have been MD for three years Absolutely not! Anyone can clearly focus through our distribution system. and my job is now more production differentiate and discriminate between Other malt brands will be worked on a oriented than it has ever been before. different brands. Each of ADL’s brands tactical basis where the opportunity I joined the whisky industry in 1968, is individually crafted in order to be exists. In the UK the others are used as an export trainee at White Horse unique. But it is more than taste. Each tactically rather than strategically. At Distillers and spent the first part of brand carries the promise of satisfaction present Glendronach is widely available, my career in all parts of the world in- for its target drinker’s needs but also Scapa and Miltonduff is in duty-free cluding six years in Latin America and offers its consumers added value shops and Tormore in Victoria Wine, an six in the Far East.
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