Diageo is set to begin the commissioning process for the reopening of its Port Ellen distillery on Islay next month.
Port Ellen closed in 1983 but six years ago the drinks giant announced plan to bring it and fellow lost distillery Brora on Sutherland back as part of a £35 million investment.
Commissioning of Port Ellen will begin in September, with distillation starting in December. An official opening, which will include a visitor centre, will take place next year.
The news was revealed by Diageo’s president of global supply chain Ewan Andrew who said demand for Scotch whisky continues to increase.
He said: “Brora has reopened but Port Ellen has taken more time.
“We took longer to design the site as it’s a distillery that’s always been rich in innovation, producing different types of liquids.
“We are really excited to see it open again.”
Diageo anger at new alcohol duty
The spirits giant posted a 7% rise in pre-tax profits to £4.7 billion for the year to June 30.
Mr Andrew said even in a cost-of-living crisis demand for premium spirits remains strong.
He said: “There is a long-term trend of premiumisation. Consumers are stepping up despite difficult economic conditions. They see this as an affordable indulgence.
“Around the world there are 400 million people drinking Scotch whisky around the world every month and a quarter of them are drinking Johnnie Walker.”
He described new rates of alcohol, which will see tax rises of 10% on a bottle of whisky, as a “headwind” for the sector in the UK.
He said: “It’s a hammer blow to the industry at a time of a cost-of-living crisis. It will pass straight through and hit shoppers immediately.
“I think we are continuing to push for a fairer tax system. Spirits are taxed a lot more than cider, wine and beer.
“Diageo is big enough and broad enough to manage through, but it’s going to help smaller producers. We call for a review of the tax system.”
Diageo, which counts Smirnoff and Guinness among its brands, said it has been raising prices to counter cost pressures across its global markets.
It said it expects organic earnings growth to improve over the first half of 2023-24 and “accelerate gradually” over the remainder of the financial year.
