Whyte & Mackay lowers job loss estimate on Scottish Bill

Scotch whisky maker Whyte & Mackay (W&M) has revised its estimate of job loss from 300 to 80 on account of introduction of the minimum alcoholic drink price.

The world’s fourth-largest distiller, which was acquired by billionaire Vijay Mallya in 2007 for around £600 million, currently employs 480 people at its Grangemounth and other facilities in Scotland.

The whisky company’s business is under threat from the Alcohol Bill that is currently being debated by the Scottish government. If the bill is passed it will severely impact W&M’s sale to private label whisky players that constitute over 50% of its total revenue.

Rob Bruce, head of global PR of W&M, told DNA from London the earlier figure of job cuts was based on the assumption that the new pricing policy for alcoholic drinks would apply to entire UK instead of just Scotland.

The company had also taken into consideration a higher minimum price of 50 pence to study the fallout of the Alcohol Bill, which proposes to set a floor price for alcoholic drinks to discourage liquor consumption. The Scotland’s government has indicated it was looking at fixing the minimum price at around 40 pence.

“We have sent across our message to government that the minimum price would be detrimental to the industry. It would lead to significant job loss. We could lose around 80 people and the (Scotch whisky) industry could lose 400,” he said.

W&M chief John Beard in his presentation to Holyrood’s committee set up by Scottish parliament to decide on the minimum pricing issue had said he feared the new alcohol pricing policy would force his company to shut down its Grangemouth distillery and bottling plant, which  employs 300 people.

Bruce also feels it would be difficult for the Scottish government to pass the bill as it was illegal and against the European Union (EU) competition law.

“I am fairly confident that the bill will not become law,” he said.
Bruce said the Alcohol Bill may meet the same fate as the EU’s attempt to set a minimum price for tobacco, which was viewed by the court as a trade barrier and struck down.