Long-term outlook for Scotch is ‘positive’
While in New York launching Tamdhu 43 Year Old, Ian Macleod Distillers’ Gordon Dundas shares his optimism about the future of Scotch.
Times are tough for Scotch whisky. Exports are down by value, distilleries are scaling back production, and a 10% tariff on goods to the US looms.
However, Gordon Dundas, advocacy director and head of brand development for Ian Macleod Distillers, is optimistic for the category. He calls production pauses natural if broader demand is softening, saying that at Ian Macleod, which produces Scotch brands Tamdhu and Glengoyne, the vision remains long term.
“What we’re seeing is that people are making more of a considered choice,” Dundas said, noting the importance of allowing consumers to taste the whisky in order to help tell the either brand’s story. “We have whisky sitting in warehouses in Scotland. We know we have drinkers over here in America who really want to drink it.”
Dundas uses a metaphor to describe this moment in Scotch, tariffs included, saying that it is what it is and they will deal with it in the best way possible to not pass on costs.
“It’s just life. You can be sailing along and a gust of wind hits you that you’re not expecting,” he said. “As a business, you have to be adaptable and flexible. And so with tariffs, it’s just something we have to deal with. America is still an important market. We’re not not supplying America because of tariffs.”
Dundas says that Ian Macleod will continue to release new products. Earlier this year, Glengoyne released a 24-year-old White Oak expression, and Dundas is in New York now for the release of Tamdhu 43 Year Old, an ultra-rare single malt priced at US$16,000 with just 100 bottles available worldwide. Ian Macleod has more in store as well, with a new distillery on Islay, Lagan Bay, under way, while they also bring iconic Lowlands distillery Rosebank back online as well.
“Whisky is a long-term product,” Dundas noted. “There’s no doubt the Scottish whisky market in the long term is positive.”
In the short term though, the Scotch industry is staring at a baseline 10% tariff after a deal was struck between the US and UK last week. While details remain scarce, the deal provides some clarity as to what producers can expect moving forward.
“You have to continue to monitor and decide how to react to the next thing that happens. We know we have 10% tariffs. We’re working with our partners over here to work out how that then affects our retail prices,” Dundas said, adding that “20% would be very different”.
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