Glenglassaugh Distillery: the first drop in the loch?

Do you have any thoughts on the Glenglassaugh Distillery news? Let us know in the comments.

It began with an Instagram post. Drip. 

On Monday afternoon, Glenglassaugh Distillery production operator Tijay Salhotra announced the end of his tenure at the facility and, in doing so, sent the whisky industry into a spiral of speculation. The line “Glenglassaugh is closing for a while,” got the most attention as did the revelation that production roles had been made redundant.

Parent company Brown-Forman was quick to clarify that Glenglassaugh Distillery will not be closing permanently. Instead, it will operate under a shared production model with Benriach, involving alternating periods of whisky making. 

The sound of silence

In whisky, “silent seasons” are nothing new. Traditionally, these temporary pauses in whisky production occurred in summer when barley was still growing and water sources were scarce. 

Modern distillation largely eliminated these limitations, but some distilleries maintain the practice for operational efficiency. Glenfarclas has a silent season, and so does Glengoyne. Aberfeldy too.

Shared production is also not new. Brown-Forman already applies this approach with master blender Rachel Barrie, who oversees whisky creation across its single malt portfolio. 

But let’s not pretend everything’s fine. This is not a throwback policy done in the name of tradition or simply a move towards a broader efficiency strategy. Staff aren’t made redundant when things are peachy. 

It was only in the summer of 2023 that a shiny new Glenglassaugh single malt range was launched as part of a larger “reawakening” for the distillery. After all that shouting, any silence now seems deafening.

A sign of the times?

Worse, it isn’t a shock. Cost-cutting measures are occurring across the industry. In January 2025, Brown-Forman announced a 12% reduction in its global workforce – about 650 jobs from a total of 5,400. 

Edrington has cut jobs at Macallan. Pernod Ricard has made similar workforce reductions within its whisky portfolio. Whispers of distress at bright new hopeful distilleries continue to circulate. Irish whiskey producer Waterford Distillery entered receivership at the end of 2024. 

At the beginning of the week, we published an article on whisky exports, written before the Glenglassaugh news broke, and we reflected on the seemingly inevitable reality of distillery closures: “Unless something changes, we will lose distilleries in the next couple of years.” 

The harsh reality is that the numbers aren’t good. Sales are down. However, the industry has invested in growing the capacity to make whisky. For years, there was a steady rise in demand. Then it dipped. 

Drip. Drip. 

What we lose from a whisky loch

This isn’t the first downturn the industry has seen. The 1890s Pattison Brothers whisky crash, the post-war slump of the 1950s, and the contraction following the 2008 financial crisis all forced the sector to adapt. But what’s happening now is most reminiscent of the ‘whisky loch’ of the late ’70s and early ’80s. 

The term was coined to represent the surplus whisky that was produced as the industry failed to respond to falling demand. Partly this was due to the rise of white spirits and a cocktail culture that promoted the light, bright, and often downright silly. Whisky didn’t just stop being cool, though. A harsh economic climate took its toll.

By 1985, all of the following distilleries had closed: Banff, Coleburn, Convalmore, Dallas Dhu, Garnheath, Glen Albyn, Glen Esk, Glen Flagler, Glenlochy, Glen Mhor, Glenugie, Glenury Royal, Hillside, Linlithgow, Millburn, Moffat, North Port, and, of course, the now revived Brora and Port Ellen. 

The first drop in the loch?

In August 2022, Ian Buxton asked on this blog if we were heading to the return of the whisky loch. When listing the difficulties that spelt disaster before, he listed an eerily familiar roll call: rampant inflation, strikes, energy crises, dysfunctional governments, war, the sudden growth in nationalist politics, an associated rise in protectionism…

Whisky distilleries of today are dealing with all of that, plus other problems: a more punitive tax and legislative environment (Minimum Unit Pricing, anyone?), climate change pressures, the collapse of the Russian market for whisky, the fallout from the Covid pandemic, the rise in cannabis-based products, and increasing coverage and concern for health and wellbeing (sometimes veering into the puritanical as far as booze is concerned).

Rising prices and increased commercialisation have even caused some of the older more established whisky drinkers to engage less. Why would somebody pay nearly £200 for a single malt they remember buying just five years ago for less than £100? Then there’s a new article with data telling us that younger generations don’t even want to drink seemingly every week.

Drip. Drip. Drip. 

Preventing another whisky loch

Another whisky loch is not inevitable. But things do need to change. I can’t help but feel we’re not striking the right balance between regulation and economic sustainability for whisky. 

Scotch whisky is arguably the most important export the UK has, yet its tax laws treat it like a dirty secret it would rather hide. With so many factors we can’t control limiting whisky, we can’t afford to be holding this industry back with ones we can. The government needs to start working with the likes of the Scotch Whisky Association (SWA), not against them.

Getting that trade agreement with India in place is starting to feel less like a fat Christmas bonus and more like an industry Hail Mary right about now. “Help me Obi-Wan Kenobi, you’re my only hope”. But it does show there’s market potential. Strengthen whisky’s presence in emerging markets and you slow this decline significantly. At home, whisky tourism is proving fruitful in Scotland and Ireland. Local support there is a win for everybody. 

Long-term growth over short-term grabs

We also can’t fuel the disillusionment. Seeing redundancies while salaries are sky-high in top positions stings. It also seems the first thing that goes when things get tough is the more sustainable, ethical policies. Dropping LGBTQ+ initiatives when we need them most and not investing in a greener future reflects the kind of cynical short-term thinking that rarely leads to long-term gains. You want young people to get involved? You can’t keep telling them everything that matters to them is not worth investing in. 

Fundamentally, the consumer needs to be treated like the informed, passionate, vital element that props up the industry that they are, rather than a loud inconvenience who won’t shut up and just buy something already. Stop ripping them off. Stop putting hype over transparency. Whisky is a working-class drink. A spirit of the people. That’s how it began, that’s how it grew. Like football, it shouldn’t be pulled away from the people who made it simply to chase profit. 

Whisky needs to remain accessible to consumers, both established drinkers and potential new ones. Striking a balance that means it’s also profitable for producers and resilient to market fluctuations is not impossible. The recent price hikes are pushing people away. Is it really worth chasing “premiumisation” for this? 

Sustainable pricing, market expansion, and fairer taxation would be a good start. When the going gets tough, it’s most tempting to prioritise short-term grabs over long-term growth, but that’s exactly when faith in the latter is needed most. 

Hope and Harrison Ford

Right now it’s hard to say exactly where we are. It’s particularly confusing when you come back from holiday and hear Glenglassaugh is gone(ish) and Glenmorangie has Harrison Ford money on the same day. 

But that Han Solo dolla does reflect there is some cause for hope. The investment of some brands suggests some confidence in the market to bounce back. While some distilleries adjust their production schedules, others are investing in expansion. 

Diageo only recently completed a £185 million revamp of visitor experiences at its flagship distilleries. New distilleries continue to emerge, such as Ardgowan’s £20 million carbon-neutral project, and Portintruan, the new Islay venture by Elixir Distillers. Coleburn and Dallas Dhu are being revived. 

You’d also like to think such an unfair and punishing consumer environment, not just in whisky, but all over, can’t continue. If other pressures ease then more people will have the disposable income to spend. I don’t know if it’s blind faith to assume that brighter days are ahead but surely it can’t get any worse? 

The whisky puddle

Despite all the pressures, I’m confident the whisky industry won’t return to its 1980s dark days. But there will be some difficult periods and losses ahead. The question is how many we lose, who we lose, and what we can do to support the people involved.

The shift at Glenglassaugh is just one part of a broader balancing act between demand, production, and economic forces. It’s also a big drip we can’t ignore. 

We’ve got our warning, plain and simple. There’s a puddle forming. We can’t let it form a loch. 

I know one thing for sure. In a tight situation, I’m sure glad to see Harrison Ford is now on my team. 

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