A distillery based in the Outer Hebrides is being forced to restructure their business, with production being cut and staff facing job losses.
Isle of Harris distillery said in a statement that they are being forced to make these unwelcome changes due to the “challenging headwinds” affecting the whole industry.
Founded in 2015, the Isle of Harris grew to prominence as an award winning gin distillery. The distillery released their first single malt whisky - The Hearach - in September 2023 which was met with near universal acclaim. Subsequent releases from the distillery have been equally well received.
Isle of Harris distillery is also one of the most prominent employers on the island, currently providing jobs to 45 members of staff.
Simon Erlanger, managing director of Isle of Harris Distillery, said: “In a move to safeguard the future of our business, today we are introducing a restructuring programme, which will see reduced production and workforce at the distillery.
“Much like our colleagues in the wider spirits industry, we are facing challenging headwinds that have led to some incredibly difficult decisions. Following a number of cost-cutting measures, voluntary redundancy is being offered to staff in the first instance, with compulsory to follow thereafter if we do not fulfil our cost reduction target.”
At the time of writing, employees are still engaged in a consultation process with the company it and it has not yet been revealed how many staff will be affected by the changes. However, it has been confirmed that the distillery will reduce the number of distillation shifts from two to one per day.
Erlanger gave thanks to everyone behind the Isle of Harris’ success and for their “dedication and contribution to the business,” calling the business’ current situation “deeply regrettable.”
The news from the Isle of Harris is unfortunately the latest in a number of stories about whisky makers either reducing or pausing production, or facing the unenviable task of cutting staff.
In January this year spirits giant Brown Forman announced major changes to their global workforce and production plans. They plan on reducing their workforce by 12%, largely centred on closing their cooperage in Kentucky.
Brown Forman’s changes also affected their Scotch whisky distilleries. Earlier this year it was announced the Glenglassaugh were temporarily moving to a shared production model with Glendronach, which led to speculation regarding Glenglassaugh’s future.
Over in Ireland, two of the biggest country’s producers announced changes to their productions schedules last month. Tullamore DEW were reducing the number of stills operating at their distillery while Midleton - the home of brands such as Jameson and Redbreast - revealed they would be pausing production until later in the year.
Elsewhere, Denmark’s Stauning recently reduced their workforce by around 25% after Diageo withdrew support for the Distill Ventures accelerator programme, and American single malt producer Westward Whiskey filed for bankruptcy earlier in April.
Returning to the Isle of Harris, hopefully making these difficult decision now will ultimately benefit the distillery going forward. Erlanger remains confident that the distillery can survive these challenges and enjoy a successful future.
He added: “We remain true to our founding purpose as a sustainable, multi-generational firm built to support the community for many years to come. The regrettable measures now being taken are necessary to help fulfil that long-term vision.”
