Speyside Distillery signs distribution deal to meet whisky demand

Scotland’s Speyside Distillery has signed a distribution agreement with Luzhou Laojiao International Development to meet an increasing demand for its single malt Scotch whisky in China.

The agreement will increase the production of Speyside’s single malt whisky by 66% to one million litres a year.

Luzhou Laojiao will distribute the distillery’s Spey and Beinn Dubh brands in China, where sales of Scotch whisky have been increasing.

The agreement will place the company’s spirits portfolio in duty-free outlets across China and other key markets.

Speyside Distillers CEO John McDonough said: “Although our brands have been present in China for a number of years, most of the distribution and sales activity has been within the southern provinces.

“This distribution agreement with Luzhou Laojiao will enable us to move to a completely different level and will help to meet the growing demand for single malt Scotch whisky from China’s urbanised, affluent young professionals.

The Scottish firm expects that supply-demand for global duty-free and duty paid within China will have a significant impact on production.

The international reach of Speyside Distillery is reported to have grown significantly in the last five years and the brands are currently available in 34 different countries.

Speyside Distillery managing director Patricia Dillon said: “Due to John’s existing business operations in Taiwan when he bought the distillery, we were very quickly able to cultivate a market for Spey in that territory and it has historically always been a key driver for sales.

“Around 70% of our global sales currently come from that region, but this agreement with Luzhou Laojiao for global duty-free and internally within China sets us on a path that will challenge the volume that we have in Taiwan.”