UK: Diageo plans redevelopment of its Talisker Scotch whisky distillery

Diageo has proposed a redevelopment of its Talisker Scotch whisky distillery in the Isle of Skye, Yahoo Finance reported on October 10.

The distillery, based in Carbost on the Minginish Peninsula on the Isle of Skye in Scotland was founded in 1830 but is set to be revamped by the UK spirits giant.

In a Proposal of Application Notice (PAN) made last week, Diageo said the development would include the "demolition of existing production facilities" with the view to construct a new distillery and "expand" Talisker's "existing output".

It added that the rebuild would incorporate “sustainable technologies, with associated support facilities at the site, together with all associated infrastructure, including new access, drainage, outfall, road improvement and landscaping works”.

A Diageo spokesperson said: “As a business we continually review our production footprint in support of our long-term growth ambitions for Scotch and the Proposal of Application Notice (PAN) for Talisker Distillery allows us to explore and evaluate potential options.

“A public consultation will form part of the PAN however at this point in time we have no firm plans for investment. Details of the public consultation arrangements will be shared in due course where the community will be able to view these proposals and provide feedback.”

According to Diageo's annual report, Scotch accounts for 24% of its reported net sales.

In its fiscal 2024, the Singleton whisky maker saw reported net sales for Scotch drop 6% in the 12 month period, while organically they declined 10%, driven by inventory reductions in its Latin America and Caribbean market. Organic volumes dipped 7%.

Diageo owns 31 Scotch whisky distilleries in Scotland, including Port Ellen which reopened in March. The revamp was part of the Lagavulin producer's wider £185m ($241m) investment into Scotch whisky and tourism in Scotland.

The group is also working to expand warehousing facilities in Midtown in
Clackmannanshire, which includes investment in "state-of-the-art automation of warehousing".

"Diageo plans Talisker distillery rebuild" was originally created and published by Just Drinks, a GlobalData owned brand.

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