Operations

2018 was a year of transformation for Edrington’s operations.

The new distillery and brand home for The Macallan opened in June last year. This amazing building embodies The Macallan brand, and from an early point it has been meeting our expectations in the quality, consistency and quantities of spirit it delivers.

The focus of investment now shifts to the manufacturing and customer service aspects of operations, as we strive to create a manufacturing and supply chain that delivers on the expectations of premium spirit consumers. If we want to be the best in the industry, collaboration at every level is essential.

We are in the process of a transformational examination of our entire supply chain, from the barley field and the cask suppliers in Jerez, right through to the packaging of our prestige products and increasingly, a direct relationship with the consumer.

This is one element of a suite of projects that we are using to build a robust supply chain driven by quality and service, designed to deliver the assets and flexibility required for long term growth. To do that, we will focus on our people, our investment in assets and our business capabilities, making sure that every person knows what quality and service look like in their job, and that they have everything they need to deliver it.

Operating safely and sustainably is non-negotiable in our business. In the UK, our single malt distilleries received an excellent rating from Scotland’s environment regulator, SEPA, and Edrington was honoured that The Macallan was chosen for the launch of the SEPA Scotch Whisky Sector Plan, which aims to build on the consistent high environmental performance of the industry.

Outside Scotland, our investments in the Brugal rum distillery at San Pedro de Macoris in the Dominican Republic will accelerate the business and its environmental performance. This is a brilliant way to celebrate Brugal’s 130th anniversary.

In the sustainability section of this report, we disclose further information about our contribution to the sustainability agenda and announce our comprehensive new strategy.

The detailed plan that our business had in place for Britain’s planned exit from the European Union on 29 March 2019 remains in place and we are well positioned for whatever the outcome might be. This has been a tremendous cross-functional effort, both before the March deadline and during the current extension. The team is remaining vigilant in its preparations.