Brown-Forman has confirmed it is pausing production at its Glenglassaugh Distillery during a challenging time for the Scotch whisky industry.

The distillery was founded in 1875 but closed in 1986, then was revived by the Scaent Group in 2008. It was acquired by BenRiach Distillery in 2013 and became part of Brown-Forman’s portfolio in 2016.

Brown-Forman Director of External Communications Elizabeth Conway said: “Glenglassaugh Distillery is not shutting down. We are implementing a shared production model with BenRiach, which will involve periods of production alongside occasional silent seasons, as has been the case traditionally. This allows us to optimise resources and expertise across both distilleries.

“This shared production model, and our ongoing demand planning process, resulted in a small number of redundancies. We deeply value the contributions of those impacted and are committed to providing support to them throughout this process.

“Our commitment to crafting exceptional whiskies remains as strong as ever, and we are grateful for the continued support and enthusiasm of our customers and markets worldwide.”

Three new Glenglassaugh expressions became available in Australia in September 2023, introducing whisky lovers to the distillery’s new portfolio and design direction.

The portfolio includes the flagship 12 Year Old Single Malt, plus Sandend and Portsoy. The overall artistic direction for their bottle designs takes inspiration from rippling sand tide at Sandend Bay where the whiskies are produced, with touches of colour inspired by sea glass.

Sandend was named Whisky of the Year 2023 by the Whisky Advocate.

Earlier this month, Brown‑Forman announced it was restructuring its executive leadership team, cutting 12% of its global workforce and closing its cooperage. 

The news of its temporary closure broke when Distillery Production Operator Tijay Salhotra announced his job loss on Instagram.

Salhotra said: “And just like that my time at Glenglassaugh and Brown Forman has come to an end. Due to the decline in the whisky industry and a change in the corporations activities, Glenglassaugh is closing for a while and production roles made redundant.

“It’s been an amazing three years with the company, beginning from my time at Glendronach in the visitor centre and the last 2 years at the helm of Glenglassaugh. I want to say a big thank you to everyone who watched and engaged with my stuff here on IG, it means the world that I could showcase what I do and possibly put a smile on someone’s face at the same time… It really means a lot.

“I’m not sure what’s next for me personally, I’m a firm believer that everything happens for a reason so let’s see what life has in-store for me. Glenglassaugh will always be in my heart and a part of me will always be at Glenglassaugh.”

Rollercoaster year for Scotch Whisky

Glenglassaugh was the third largest contributor to organic growth for Brown-Forman in the first half of fiscal 2024 (ended 31 October 2023), with second quarter reported net sales increasing 1% to $US1.1 billion compared to the same prior-year period.

Brown-Forman’s President and Chief Executive Officer Lawson Whiting said at the time that organic net sales growth was driven by Jack Daniel’s Tennessee Apple, Mexican RTD brand New Mix and Glenglassaugh. 

Whiting told analyts Glenglassaugh was a “fabulous brand” that was part of the trio of single malt scotches the company acquired in 2016 along with Benriach and GlenDronach.

“Glenglassaugh was the smallest of the single malt scotch brands we purchased and while we’ve always believed in the strong future for the brand, there just hasn’t been enough supply to be material to our results as it takes a decade or more for these products to mature,” he said.

“Through the brand’s old and rare program, we’ve discovered that while Glenglassaugh may be smaller relative to our other single malt brands, the value of its casks are mighty.

“We recently sold a single Glenglassaugh cask from 1967 that was one of the largest cask sales in terms of rarity, volume and value in the history of the Scotch whisky industry. Cask sales from Glenglassaugh in the first half of fiscal 2024 helped place the brand as the third largest contributor to the company’s organic net sales growth.”

However, in Brown-Forman’s most recent financial results, it revealed its ‘rest of whiskey’ portfolio, which includes both Glenglassaugh and BenRiach, had dropped by 22%.

The value of Scotch whisky shipments fell by 18% to £2.1billion in the opening six months of 2024, according to figures released by the Scotch Whisky Association.

The trade association represents 95% of the Scotch whisky industry.  There are 151 operating Scotch whisky distilleries in Scotland, supporting 41,000 jobs directly and 25,000 more across the UK. 

SWA Chief Executive Mark Kent said: “It is clear that the first half of 2024 has been challenging, as for other premium global exports. This has not come as a surprise given the volatile international situation affecting global industries and inflationary pressures which have fed through to consumers across global markets.”