Distiller considers trade complaint against SWA

Canadian producer Macaloney’s Caledonian Distillery is considering filing a trade complaint against the Scotch Whisky Association after it prevented the firm from distributing its products in Germany.

In March 2021, the Scotch Whisky Association (SWA) filed a civil lawsuit against Macaloney Brewers & Distillers (MBD), the owner of Macaloney’s Caledonian Distillery & Twa Dogs Brewery in British Columbia, Canada.

The SWA accused the Canadian producer of violating Scotch whisky’s geographical indication (GI) by using words that were associated with the country on its whiskies.

The trade body allegedly told MBD’s distributor in Germany that it would file a lawsuit to stop the company from importing MBD’s Canadian single malt whiskies.

MBD said this move has resulted in suspended distribution of its products in the German market.

As such, MBD is considering filing a formal complaint to German and EU trade commissioners over the trade body’s ‘punitive practices’.

The SWA has objected to the use of the words ‘Caledonian’, ‘Macaloney’, ‘Island whisky’, ‘Glenloy’ and ‘Invermallie’ on the distiller’s products.

However, MBD argued that Diageo, which occupies three SWA council seats, continues to market and sell its Indian whisky brands McDowells (a Scottish surname) and Bagpiper. The latter was quoted by the SWA as an example of an image that symbolises Scotland, MBD noted.

The whisky maker argued that the use of ‘Macaloney’ refers to its founder’s last name.

‘Glen’ is also used by other Canadian producers, including Glenora Distillery’s Glen Breton whisky, which won a lawsuit against the SWA in 2009, MBD said.

‘Punitive act’

Graeme Macaloney, who founded MBD in late 2016, said the company would do “whatever is necessary” to reverse the trade group’s action.

He said: “I have every right to celebrate my heritage. This kind of punitive act by the SWA, whose governing council is controlled by the four largest Scotch multinational corporations, cannot be allowed to stand.

“To suggest that Glen, an Irish word in common usage internationally by Scots and Irish diaspora, is inappropriate, is resulting in international consumers being denied access to our ‘Canadian best’ Glenloy and Invermallie whiskies.”

Since the lawsuit was filed against MBD, the distiller said it had received support from the public with nearly 1,000 letters of complaint regarding the SWA’s action.

The SWA said in a statement that it would “always take action to protect Scotch whisky from attempts to benefit unfairly from its reputation”.

The trade group also pointed to its recent win in a long-running lawsuit against German single malt Glen Buchenbach, following an appeal over the decision. The SWA first sued the German producer in 2013.

The SWA said in a statement: “EU law protects geographical indications (GI) such as Scotch whisky to a very high level, including preventing the use of names which evoke an association with the protected GI.

“That was recently highlighted by a decision of the German appeal court that the use of ‘Glen’ as part of the brand name ‘Glen Buchenbach’ on German whisky evoked Scotch whisky and was not permitted.”