🥃 Weekly Whisky News May 5, 2025

🏭 Industry & Business Developments (April 28–May 5, 2025)

📉 Financial Challenges and Market Pressures

• Devils River Whiskey Files for Bankruptcy: San Antonio-based Devils River Whiskey has filed for Chapter 11 bankruptcy protection. CEO Mike Cameron cited industry-wide challenges such as inflation, tariffs, and declining spirits sales as key reasons. Despite consistent consumer interest since its 2017 debut, the company is grappling with broader issues including oversupply and export concerns. The filing allows the company to continue operations while reorganizing its debts. [1]
• Whisky Merchants Ltd Collapses: UK-based cask investment firm Whisky Merchants Ltd has gone into administration, leaving investors uncertain about the status of their casks. The company had raised approximately £80 million from clients, promising high returns on Scotch whisky cask investments. The collapse raises concerns about the regulation and transparency of whisky cask investment schemes. [2]

🏗️ Expansion and Economic Impact

• Highland Distilleries Drive Population Growth: Scotland's Highland islands are experiencing a population revival, partly due to the expansion of whisky distilleries. For instance, Skye’s Torabhaig distillery has invested over £25 million, creating nearly 25 full-time jobs. Similarly, a new £12 million distillery on the Isle of Barra promises long-term employment opportunities. This growth is helping to stabilize communities that previously suffered from economic decline. [3]
• New Distillery Approved on Loch Lomond: Plans for a new whisky distillery and visitor centre along Loch Lomond in Luss, Dumbartonshire, have been approved. The Loch Lomond Group will transform the old Luss smokehouse and surrounding land into a 5,362 sq.m site, including a distillery, tasting area, and visitor centre. The facility aims to boost tourism and create jobs, supporting the local community. [4]

🌐 Regulatory and Trade Developments

• English Whisky Seeks Geographical Indication (GI) Status: The English Whisky Guild has applied for a geographical indication (GI) to legally define "English whisky." The proposed criteria include using UK cereal grains, English water, and maturation in England for a minimum of three years. The application is currently under consultation, with a decision expected by May 20, 2025. [5]
• Tariffs Impacting Whisky Exports: The reimposition of tariffs by the U.S. on UK goods, including a 10% duty on Scotch whisky, is causing concern among producers. These tariffs, combined with existing challenges like surging input costs and cautious retail buyers, are prompting some distilleries to reconsider or delay U.S. expansion plans. [6]