Scotch distillers could save £30m by using 5G

Whisky distilleries in Scotland could save £30 million (US$36.5m) over five years by investing in 5G technology, a new report has found.

The Scotland 5G Centre commissioned technical professional services firm Jacobs to explore the potential use of fifth-generation (5G) wireless network technology in whisky distilleries.

Backed by the Scottish government, The Scotland 5G Centre is the national centre for accelerating the deployment and adoption of 5G connectivity in the country.

A medium- to large-sized distillery could benefit from an annual saving of £376,500 (US$458,600) following the implementation of 5G, the report noted.

The findings were based on research from an unnamed distillery in Central Scotland, which produces approximately 250,000 litres of whisky per year.

The centre noted that there are 146 malt and grain distilleries in Scotland producing around 401 million litres on a yearly basis.

The report said the installation of 5G technology could be ‘significant in both modernising and future-proofing’ the sector – particularly whisky producers located in more remote areas of the country.

Rick Robinson, director of smart places at Jacobs, said the technology could “revolutionise Scotland’s whisky distillery industry”.

He continued: “Advanced communications like this could significantly change the way distilleries operate and enhance the efficiency and productivity of the industry as a whole – particularly rural distilleries.”

The study looked at four areas where the technology could help the sector: health and safety, cask management, site management and maintenance and security.

The report found that 5G-enabled geofencing, used to set up virtual boundaries across the site, could cut health and safety incidents by 50% by sending real-time alerts to workers entering potentially high-risk zones.

Furthermore, it could boost cask management efficiency processes by 15% through radio-frequency identification (RFID) technology that shows the location of casks.

Distilleries could gain £125,000 (US$152,257) due to increased labour productivity in cask management process, as it would reduce manual record keeping.

The technology could also provide mapping and tracking of equipment and reduce security breaches by 50%, the study found.

Ian Sharp, head of delivery at The Scotland 5G Centre, added: “With challenges such as rising inflation and sustainability firmly on the agenda, it’s becoming increasingly important for distilleries to find new ways of remaining commercially competitive.

“This report indicates that investing in a combination of 5G-connected technologies and private 5G networks will allow distilleries to unlock new ways of working that will not only reduce costs but boost productivity and efficiency across their business.”

Chivas Brothers, the Scotch whisky arm of Pernod Ricard, made its carbon-reducing technology available to the wider industry – a move it believes could halve carbon emissions.