Scotch Whisky: Interesting Times

Another company reports lower sales, this time it is Edrington.

So, Famous Grouse now joins Johnnie Walker in reporting a downturn.

Not really surprising, as the Graph has continually risen over the last 10 or so years, and cannot go on forever like this.

Downturns in this Industry are nothing new of course, I have witness three fairly major corrections in my almost 55 years association with the business.

The reasons for them happening can range from Political ineptness, Wars, and downright poor management, and of course competition from other alcoholic products.

Whatever the reasons, it ought to be recognised that as with all things, what goes up, will inevitably come down again, at some point.

This is a highly cash hungry business, and it only takes a blip, or blips, to upset the equlibrium of the Industry, and when that happens it is not unusual for the larger companies to slash levels of production, and in some cases go “silent” at least for a period of time in order to get the stocks balanced, and of course the bank accounts!

Management at all levels, and in all companies must not procrastinate, as has often been the case, but take decisions which have to be taken, with the very best interests of the company, it’s employees, and shareholders at it’s core.


Let’s see what will happen next…..Interesting times indeed.


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John McDougall