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The Herald Scotland
07-05-2025
- Business
- The Herald Scotland
Why Scotch whisky distillery job cuts so difficult for island
His tone contrasted with that of many corporate leaders I have interviewed over the years who seem to simply not think about, or worse not care about, people as they talk about things having to be done for 'the business'. Of course, many business leaders I have spoken to thankfully do grasp the fact that 'the business' would not exist as an entity without the people in it. My conversation with Mr MacEachran left me in no doubt that the Isle of Harris Distillery management team is acutely aware of the profound effects of the decision that has been made about redundancies on the workforce. This was no surprise to me, given a clear founding purpose of the distillery was to provide sustainable employment for a fragile island community and also my past conversations with management. The distillery's current workforce of 45 is significantly higher than what was envisioned would be possible over the years in which those behind it worked to turn the dream of creating it into a reality. All of this will probably not be of much comfort to those affected by the redundancy process. And there is no doubt that it is lamentable that the chill being faced by the broader Scotch whisky industry, which had for so long enjoyed such good times, has affected Isle of Harris Distillery's business in a way which has led management to see no alternative but to make job cuts. I covered the Isle of Harris Distillery story for years before the venture opened in 2015 - including the vision and fundraising - and have continued to write about it ever since. In conversations with managing director Simon Erlanger over that long period, his passion over the creation of the distillery and crucially the employment on the island it has enabled has come across strongly. A visit to the distillery in the autumn of 2017, during which I interviewed Mr Erlanger and spoke to some of the employees, reinforced in my mind just how important the jobs created by the distillery are to the island community. Read more I was, in any case, well aware of this, from covering remote and island communities a long number of years ago when working for The Oban Times, and from having in my role at The Herald written about many businesses operating in areas where labour markets are fragile. Isle of Harris Distillery has enjoyed many successes over the years. Its gin not only provided crucial cash flow while the distillery waited for its single malt Scotch whisky, The Hearach, to be ready, but also won many awards. Many people will be familiar with the distinctive Isle of Harris gin bottle. The Hearach, named after the Gaelic word for a native of Harris, was launched in autumn 2023. In summer 2023, just ahead of the launch, Mr Erlanger told me: 'We talk about this as being the end of the beginning. We now go into a different momentum, a different era. In a way, we have gone through a lot of growing pains [with] a very inexperienced team. 'We have 45 local people now, which is double what we said we would deliver.' Mr MacEachran noted then that one-third of this workforce was under 30. The distillery, which is owned by private investors, has worked hard on forming lasting bonds with its customer base. And many of its customers have been inspired to travel to Harris as a result. Mr Erlanger last week described the planned redundancies as 'deeply regrettable', characterising the decision as 'a move to safeguard the future' of the business. He said: '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 which 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. It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business.' Mr MacEachran told The Herald last week that the business was now having to move from two shifts to one shift a day in its distillation. Read more He said: 'We have taken the desperately sad decision to reduce our cost base further. It is without doubt the saddest day in the distillery's young life. It is essential to allow us to navigate through these difficult times." Mr MacEachran emphasised that every effort had been made to avoid job losses, with other expenditure such as advertising and promotion cut and capital spending deferred. He said of the job cuts: "We have where we can reduced other costs. This is the very last area. We have tried to avoid it. It is now essential." Mr MacEachran highlighted the distillery's conclusion that the challenges being faced were not viewed as 'very short term', and appeared at pains to point out that the decision to cut jobs would not have been taken if they had been seen that way, Mr Erlanger said: '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.' The distillery has declined to specify the number of redundancies being sought while discussions with staff are ongoing. Asked last week if he had any idea at this stage whether there would be enough volunteers to avoid compulsory redundancies, Mr MacEachran replied: "We have to wait and see. I have no understanding of that at this point." He emphasised not only the recent efforts to try to avoid job losses but also the broader context. Mr MacEachran said: 'What we have seen across the industry in recent months are significant reductions in A and P (advertising and promotion) expenditure, headcount reductions, some of them very significant, slowing down of distillation or mothballing of distilleries." While noting the challenges were expected to persist over the medium term, Mr MacEachran expressed hopes that, when the market conditions improved, the distillery might be able to increase the size of its workforce again. This came across as a passionately held wish. It is important to be realistic and bear in mind the emphasis from management of the enduring nature of the challenges currently being faced. And the scale of the impact of these challenges on the distillery and crucially its workforce must be recognised. However, when this difficult chapter comes to an end, we must hope there will be better times again for the distillery, its workforce and the Harris community.
Yahoo
01-05-2025
- Business
- Yahoo
Isle of Harris Distillery to cut jobs amid restructuring
Isle of Harris Distillery has initiated a restructuring programme that will include a reduction in both production levels and workforce at its distillery. In a statement, managing director of the Scottish gin and whisky maker Simon Erlanger said the decision was being made 'to safeguard the future of our business'. He added the move was "deeply regrettable". Specific details regarding the number of job losses or the departments affected were not disclosed.. Erlanger added: 'Much like our colleagues in the wider spirits industry, we are facing challenging headwinds which 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." Global exports of Scotch whisky declined in value terms but increased in volume terms in 2024, recent figures from the Scotch Whisky Association (SWA) show. Exports by value stood at £5.4bn ($6.7bn) last year, marking a 3.7% decrease from 2023. Founded in 2015 and based in Harris, part of Scotland's Outer Hebrides, Isle of Harris Distillery currently has 45 employees. It produces Isle of Harris Gin - distilled with locally harvested sugar kelp seaweed - as well as its single malt whisky, Hearach. Its products are available in 20 countries, with key markets including the US, UK, France, Germany, and the Netherlands. In December 2022, the distillery secured £10m (then $12.1m) in funding from HSBC 'to venture into new markets and expand our international footprint'. With the funding, the distillery also built two new warehouses on the island. In the statement, Erlanger added: 'To date, Isle of Harris Distillery represents a £20m+ investment in the island economy. '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.' "Isle of Harris Distillery to cut jobs amid restructuring" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Scottish Sun
29-04-2025
- Business
- Scottish Sun
World-famous Scots drink company reveals jobs at risk
The firm said it is 'the saddest day' in the distillery's life Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A WORLD-famous Scottish distillery has announced job cuts amid "challenges" for the spirit industry. Isle of Harris Distillery, which currently employs 45 people, said restructuring is needed to safeguard the future of the business. Sign up for Scottish Sun newsletter Sign up 1 Isle of Harris Distillery has announced job cuts Credit: PA The award-winning firm was established in 2015 with a workforce of just 10 people. It has scooped multiple gongs for its single malt The Hearach. Managing director Simon Erlanger announced staff are being offered voluntary redundancy "in the first instance", The Herald reports. If the cost reduction target is not met, compulsory will follow. The firm said "challenging headwinds" had led to "incredibly difficult decisions". Mr Erlanger said: "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. "It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business." 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." Ron MacEachran, executive chairman and chief financial officer of Isle of Harris Distillery, added: "We have taken the desperately sad decision to reduce our cost base further. Orr Decorators Collapse: The End of a 40-Year Legacy "It is without doubt the saddest day in the distillery's young life. It is essential to allow us to navigate through these difficult times." It comes days after hundreds of jobs were shed at a prestigious Scots university - with more cuts on the horizon – under plans to save millions. Around 350 employees of the University of Edinburgh have accepted voluntary severance as part of ongoing efforts to reduce costs.
The National
29-04-2025
- Business
- The National
Award-winning Scottish whisky distillery announces job cuts
The maker of Isle of Harris Gin, and also the first single malt whiskies in Harris in almost 200 years, employs 50 people. The distillery, which has won multiple awards for its single malt The Hearach, opened in 2015 with just 10 employees. Last year, Isle of Harris won Scottish Distillery of the Year as well as Product Launch of the Year and Newcomer of the Year at the Scottish Whisky Awards. Managing director Simon Erlanger said the spirits industry was facing "challenging headwinds" and having to make difficult decisions. He said restructuring was needed to safeguard the future of the business. READ MORE: We can still raise a glass to future of our whisky Staff are being offered voluntary redundancy but compulsory will follow if cost-cutting targets are not met. Erlanger said: "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," (Image: Isle of Harris) "It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business." The Scotch Whisky Association said earlier this month it was "disappointed" Scotch whisky could be impacted by 10% tariffs introduced by US president Donald Trump. The SNP said the White House's levies are set to 'hammer' the Scotch whisky industry, adding that it lost more than £600m the last time tariffs were applied in 2019 at 25%. READ MORE: Major update on future of Summerhall as Edinburgh Fringe venue In 2022, the Isle of Harris distillery secured £10 million in funding from HSBC to pay for a new export drive to distribute its gin to more than 20 markets around the world including the US, Canada and Germany. Erlanger said the distillery represented more than £20m investment in the island's economy. 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."
BBC News
29-04-2025
- Business
- BBC News
Makers of Isle of Harris Gin reducing production and staff
Isle of Harris Distillery says it will reduce its production and workforce as part of a restructuring maker of Isle of Harris Gin, and also the first single malt whiskies on Harris in almost 200 years, employs 50 people. The distillery opened in 2015 with just 10 director Simon Erlanger said the spirits industry was facing "challenging headwinds" and having to make difficult decisions. Scotland's whisky industry warned earlier this month tariffs imposed by the US - its most important overseas market - would be a "huge blow". 'Deeply regrettable' Mr Erlanger said restructuring was needed to safeguard the future of the said: "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. "It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business."Mr Erlanger said the distillery represented more than £20m investment in the island's economy. 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."In 2022, the distillery secured £10m in funding from HSBC to pay for a new export drive to distribute its gin to more than 20 markets around the includes the US, Canada, France and Germany.
