Pernod Ricard unveils £10m Glenlivet expansion

Published: 15 June, 2010

Pernod Ricard-owned Scotch whisky distillery The Glenlivet has unveiled an extension to its production facilities - aimed at helping it become the best-selling single malt in the world.

The £10 million investment includes three new sets of stills, eight new washbacks and a new, more efficient mash tun, expanding production capacity by 75%.

Prince Charles opened the extension open after a guided tour of the facilities by Chivas Brothers chief executive Christian Porta, and Pernod Ricard chairman Patrick Ricard.

Porta said the investment was needed to help The Glenlivet to realise its long-term goals.
"In the long term we have the ambition to become the world's best-selling single malt whisky," he said.

Since acquiring the brand in 2002, Chivas (the whisky and gin arm of Pernod) has nearly doubled global sales to more than 600,000 cases a year, taking it to number two in the rankings, but still well short of market leader Glenfiddich.

Whisky from the new facilities is not due to come on stream until 2022 (Glenlivet's youngest expression is a 12-year-old), but Porta said current stock levels should be enough to meet demand until then.

"I think we are well covered," he said. "If we are up by over 50% in a year, then we would have a problem, but I don't think that will happen. If our current growth continues for the next six to seven years, we have the stock to get us to when the new whisky will start to kick in."

And he said the investment would still have been made, even if the company had known about the looming economic crisis (work began on the extension in summer 2008).

"It's £10 million for the distillery, it's more investment for the casks and the maturation. Yes, we would have gone ahead - the return on investment would be very good."

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