Latest news with #IsleofHarrisDistillery
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.
The Herald Scotland
04-05-2025
- Business
- The Herald Scotland
Distillery takes 'desperately sad decision' to cut jobs
The Isle of Harris Distillery said it is "deeply regrettable". A consultation is under way. (Image: Isle of Harris Distillery) Simon Erlanger, managing director of the distillery, pointed headwinds faced by the distillery and others in the industry. The distillery, which produces The Hearach single malt Scotch whisky and Isle of Harris gin, currently employs 45 people. Mr Erlanger told The Herald: "In a move to safeguard the future of our business, today we are introducing a restructuring programme which will see reduced production and workforce at the distillery." Read Ian McConnell's exclusive story here Shopping park next to new 2,700-home development for sale The retail park is now on the market. (Image: Galbraith) A Scottish retail park has been put on the market for sale. The park is in a "highly prominent position" and next to a major redevelopment site. Galbraith said Seafield Retail Park in Edinburgh comprises a terrace of three retail warehouse units, a stand-alone retail warehouse and a stand-alone drive-thru restaurant which has been sold on a long lease to McDonald's. The agent said the stand-alone retail warehouse has recently been subdivided into two drive-to food units and 12 EV charging stations have been created in the car park. The terrace provides accommodation for Halfords, Connection Flooring and McGuirks Golf, which is currently fitting out. Read Brian Donnelly's story here Scotch whisky is a family affair for Isle of Raasay chief Whisky is a family affair for Isle of Raasay chief. (Image: Peter Sandground) Scotch whisky is very much a family affair for Alasdair Day. The former food industry chief executive is the co-founder of Isle of Raasay Distillery, which released its inaugural single malt in late 2020. But his family connections to the industry stretch back all the way to 1820, when his great grandfather, Richard Day, joined a company called J&A Davidson in Coldstream. Alasdair took his own first steps in the industry in 2009, when he recreated the recipe of one of the whiskies his great grandfather produced for J&A Davidson between 1899 and 1916. Read Scott Wright's Q&A here AROUND THE GREENS For the love of golf's hickory history The workshop is celebrating its first anniversary. (Image: Hickory Golf Workshop) This article appears as part of Kristy Dorsey's Around the Greens series Previously employed in the financial services sector, Stuart Fraser set up his artisan clubmaking business as part-time gig during the Covid lockdowns and gave up his day job in November 2023 after finding a permanent home for the operation. The Hickory Golf Workshop is now celebrating its first anniversary, having restored more than 500 clubs to their former glory. It is opening the 2025 season with a new hickory-era golf ball making experience, along with the addition of traditional plus fours and bunnets for visitors to try on. Mr Fraser describes the workshop experience as a combination of "Scottish history, traditional craftsmanship, and storytelling with the chance to handle and play with authentic hickory-shafted clubs".
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
STV News
01-05-2025
- Business
- STV News
Council to work with island distillery after 'regrettable' job cuts
A council has said it will work with a whisky distillery in the Outer Hebrides after it announced job cuts as part of a restructuring programme. The Isle of Harris Distillery announced on Tuesday that restructuring was needed to 'safeguard the future' of the business. Best known for being the maker of the Isle of Harris Gin, the distillery was established a decade ago with just ten employees. Now employing 50 people, the company will commence with a round of voluntary and potentially compulsory redundancies. Comhairle nan Eilean Siar has said it will engage with the distillery in an effort to raise any solutions to retain employees following the announcement. In a statement, the distillery's managing director Simon Erlanger said challenging headwinds in the spirits industry had led to 'incredibly difficult decisions'. He said: 'In a move to safeguard the future of our business, today 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. '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.' The news comes after The Scottish Whisky Association warned that tariffs imposed by the US – its most important overseas market – would be a 'huge blow' to the spirits industry. Comhairle nan Eilean Siar described The Isle of Harris Distillery as a 'world-renowned brand' and said they will reach out to the UK and Scottish Governments in an effort to gain an understanding into any external factors affecting the restructuring. Cllr Paul Steele, leader of Comhairle nan Eilean Siar said: 'Our primary concern following this announcement is the wellbeing of the employees impacted by this decision and their families. 'It is incredibly disappointing that one of the islands most recognisable brands has made the clearly difficult decision to make staff redundant. The Comhairle will engage with the distillery to discuss this matter and support any solutions to retain employees and strengthen the business. 'It is important that we gain an understanding of external factors that may have contributed to this situation. The Comhairle will make representation to UK and Scottish Government on these factors where appropriate.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
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.
