A SMALL Skye-based whisky company is taking on the might of the Scotch Whisky Association by accusing its “self-appointed” arbiters of putting together whisky category definitions which constrain industry growth.
In an echo of the Cardhu debacle of November 2003, Praban Na Linne — Hebridean distillers, based at Isle Ornsay on the Isle of Skye — is publicly challenging the SWA’s proposals. It is unhappy about the new proposed category description “blended malt”.
Such products, a blend of malts from different distilleries, differ from blends which contain both malt and grain whiskies. A blend of malts can currently be described on their labels as “vatted” or “pure” malts but under the revised SWA plans, these two descriptions will be outlawed from 2007.
But Pràban Na Linne, established by serial entrepreneur Sir Iain Noble in 1977, intends to enlist the support of MSPs, including the member for Ross, Skye and Inverness West, John Farquhar Munro, to resist the move.
The SWA embarked on the process of hammering out new category definitions after a bruising dispute in November 2003 over whether Diageo should be allowed to reinvent its Cardhu single malt as a “pure malt”. Rival distillers feared the move could tarnish single malts’ reputation or authenticity and for being made in a single location.
The SWA’s final proposals emerged in March after 12 months of consideration by a working group, which included representatives of major distillers such as Pernod Ricard, Diageo, Glenmorangie, Edrington, William Grant & Sons and Whyte & Mackay.
Their definitions secured unanimous support from the SWA’s council. But to take effect, the new category names must be ratified by an act of parliament, and are unlikely to become mandatory before 2007.
SWA’s Cardhu debacle solution a boorach, says Sir Iain Noble
But Iain Noble, founder and chairman of Pràban Na Linne, has slammed the SWA’s preferred description — “blended malt” — as “a wholly confusing compromise”.
Instead, he would prefer to see a simpler approach for the single malts segment, favouring the descriptions: malt Scotch whisky, single malt Scotch whisky and single cask malt Scotch whisky, but wants the term for blended malt Scotch whisky to remain as it is (vatted).
Douglas Smith, commercial director at Pràban Na Linne said: “We agree the word ‘pure’ is potentially misleading and should be dropped. We have no issues with the word ‘vatted’ but the industry seems set on avoiding this as too industrial. But to take the word ‘blended’ and stick it on a malt is confusing and will cause consumers to switch off. It seems the SWA is throwing the baby out with the bathwater.”
Smith, 33, who joined Iain Noble’s Pràban Na Linne in March 2004, having previously worked as UK marketing manager at VW subsidiary Bentley Motors, added: “This could damage the whole sector and mean we will lose ground to tequila and rum.”
Following heavy investment, Praban Na Linne is this week relaunching its Poit Dhubh unchilfiltered malt range as PD and is using the simple description malt Scotch whisky. New labelling has been designed by Glasgow-based design agency Good Creative.
But Smith believes the brand’s prospects could be seriously harmed if the SWA proposals were to take effect.
“We’re currently selling PD at the same price point as some single malts. If we start sticking ‘blended malt’ on the labels, the danger is that customers who are unfamiliar with the brand and the definitions might assume it’s an inferior product and opt for the ‘safer bet’ of a single malt.
“To use the term ‘blended malt’ is not only confusing but also damaging to category growth. Did we forget that 70 per cent of all production is exported to non-native English speaking markets? If Scots don’t understand it what hope do we have in China or Russia?”
Campbell Evans, spokesman for the SWA, said there is still time for non-members of the SWA such as Pràban Na Linne to get their points across. “A consultation is underway and companies and others have until the end of August to respond, ” he said. “But we didn’t spend the best part of a year to reach this decision because it was an easy solution.
John Glaser, a former marketing director of Diageo’s Johnnie Walker brand, who set up boutique blending business Compass Box in 2000, agrees with Iain Noble, saying the proposed category definition is “flawed”.
“Blends are perceived by many consumers to be inferior products, ” he said. “The potential damage of using the word blend is far greater than sticking with vatted malt or simply using malt Scotch whisky.”
Smith added: “As a relative newcomer to the industry, I cannot understand the wish to hold back the malt category with a confusing name description as it’s the only way the industry can increase volumes significantly without waiting 10, 12 or 15 years.”
This interview with Sir Iain Noble, which took place in Isle Ornsay, Sleat on the Isle of Skye, was published in the Sunday Herald on 7 August 2005