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Suntory
merges Bowmore and Laphroaig teams as
global whisky downturn deepens.
Suntory Global Spirits has confirmed a
major structural change on Islay,
merging the operational and production
teams at its two renowned distilleries,
Bowmore Distillery and Laphroaig
Distillery.
The move comes at a time when the Scotch
sector is facing significant pressure.
Recent figures from the Scotch Whisky
Association show global exports of
Scotch falling by -0.6% in value and
-4.3% in volume for 2025, while
restructuring firm BTG reports that one
in five Scottish distilleries is now
experiencing financial distress.
As the downturn in whisky sales
continues, so does the downturn in
whisky production. Obviously the current
world economic climate plays a big part
in this downturn, including US President
Donald Trump’s tariffs, but whisky
companies have to ask themselves if they
have gone too far with their
premiumisation program over the past 10
years or so and whisky drinkers can not
afford the prices now and are just
simply not buying.
Suntory’s decision also follows the
latest tariff scare, in which President
Trump proposed a 15% global tariff
expected to hit Scotch exports. The
company said the newly combined
operating structure reflects updated
long-term production planning and a need
to "balance distillation with maturing
inventory" during a period of declining
global demand.
Head of Distilling and Environment
Alistair Longwell emphasised the
continued importance of both brands to
the business: "Bowmore and Laphroaig are
iconic Scotch whisky brands with
exceptional heritage and craft, and they
are long-term priorities for Suntory
Global Spirits.
"As part of our commitment to producing
whisky of the highest quality in a
sustainable and efficient way, we are
making operational adjustments on Islay
to align production with long-term
demand. Distillation continues at both
distilleries, and we remain fully
committed to Islay, our people, and the
communities that have supported these
whiskies for generations."
Suntory stressed that there will be no
compulsory redundancies, though a
voluntary redundancy programme has been
opened for employees who feel the new
single-team structure is not suitable
for them. Management teams will remain
separate to preserve each distillery’s
identity, and both visitor centres will
stay open.
Despite the restructuring, Suntory has
signalled confidence in its Scotch
portfolio, confirming a strong capital
investment programme for both
distilleries over the next three years.
Industry-wide pressures
Suntory’s announcement comes amid weaker
financial performance across the whisky
industry. The company noted that its own
2025 earnings fell due to "slowdowns" in
many markets, with economic uncertainty
in the US and Europe dragging down
consumption.
Other major whisky producers are making
similar adjustments. Diageo recently
announced plans to close the visitor
centre at Clynelish Distillery, though
production will continue.
Last year, Brown‑Forman cut jobs at
Glenglassaugh Distillery as it shifted
to a shared production model with
BenRiach Distillery.
Several other producers — including
InchDairnie Distillery, Ian Macleod
Distillers-owned Rosebank Distillery,
and distillers on the Isle of Harris —
have also explored restructuring options
in response to falling demand.
Suntory says its Islay adjustments
follow traditional seasonal operating
models used across Scotch production and
are designed to ensure long-term
sustainability for both Bowmore and
Laphroaig. While production volumes are
being reduced to meet long-term
inventory and demand trends, the company
reiterated its commitment to maintaining
both distilleries as "strategic priority
brands".
You will find the current
Bowmore and Laphroaig whisky ranges available from specialist online whisky
shops such as
The Whisky Exchange
and
Master of Malt
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