On the rocks? Scotch distilleries pause production as unsold ‘whisky loch’ grows
Summary
Scotch whisky producers in Scotland have paused production because demand has dropped worldwide after years of strong growth. Large companies like Diageo and smaller ones like GlenWyvis Distillery are facing financial difficulties, with some distilleries pausing or reducing output due to a large stockpile of unsold whisky, sometimes called a "whisky loch."Key Facts
- Demand for Scotch whisky has slowed globally after a 15-year boom helped by the pandemic.
- Diageo, which makes about one-third of Scotch whisky worldwide, is expanding storage but has paused some production.
- GlenWyvis Distillery in the Highlands is appointing administrators, indicating financial trouble.
- Workers at Diageo’s Cameronbridge distillery have gone on strike due to potential job cuts.
- Scotch whisky must be aged at least three years in Scotland, making production planning difficult.
- US tariffs introduced in 2025 caused a 15% drop in exports to America, one of Scotch’s biggest markets.
- Sales have also fallen in France and other countries, though exports to India have recently increased.
- Many drink companies hold large amounts of unsold aged spirits, contributing to the supply glut.
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