Uisge beatha – or the water of life – is the age-old Scots Gaelic term for whisky.
And as recent activity in this key sector of the Scottish economy shows, a blend of innovation, investment, and sustainability in 2022 is breathing new life into our historic drink.
Chivas Brothers, the Scotch whisky business owned by French bevvy merchants, Pernod Ricard, is set to make an £88 million investment into two strategic Speyside single malt distilleries, The Aberlour and Miltonduff.
This is to develop their production capacity to meet the global growing demand for Scotch, with a focus on upgrading sustainable technologies.
Environmental sustainability is a significant factor now in future-proofing these old businesses which can have a big carbon footprint.
Elsewhere Scottish whisky distillers have raised a green glass to decarbonisation.
Scottish Power has announced a new partnership with carbon capture business, Storegga, to build a hydrogen plant in the Scottish Highlands to replace existing fossil fuel sources for the heating processes of distilleries.
Located north of Inverness, the project is designed to deliver up to 20 tonnes of green hydrogen every day with potential to supply to other local manufacturers, food producers and industrial operators.
The ‘Cromarty Hydrogen Project’ will go some way to meeting the target set by the Scotch Whisky Association, which committed to reaching net zero emissions in its operations by 2040.
There are two main leftovers from the process of making whisky; solids known as draff and liquids called pot ale.
Distilleries in Scotland produce 684,000 tons of draff and 2.3 billion litres of pot ale each year – but this leaves the issue of what to do with this waste material, which usually finds its way into landfill or dumped into the ocean.
Science boffins are now using new fermentation processes to turn that waste into biofuels.
Celtic Renewables is focusing on a different kind of fermentation process creating biochemicals that can be used to replace some of the fuel used by cars.
They could be added to petrol or diesel in the same way that ethanol has been for years to create the E85 fuel you may occasionally see at the petrol pump.
A processing plant is already being built in Grangemouth to enable this.
Alcohol and driving don’t mix but this innovative team seem to be on the right track.
Figures in a recent report by the Food and Drink Federation point towards booming whisky exports.
Findings show that Scotland was amongst three areas of the UK which saw the strongest recovery last year in response to the challenges of the pandemic and Brexit.
It found that Scotland’s bounce back has largely been driven by strong growth in exports of drinks and seafood products, which together accounted for £5.2 billion of total Scottish exports.
Its biggest export category was beverages, which made up almost three-quarters of the total.
Unsurprising, given the global strength of the Scotch whisky industry.
With exports to non-EU countries increasing, there are big opportunities to drive further growth through trade deals with increased market access.
One such deal made the headlines last week with Prime Minister Boris Johnson claiming he wants a new trade deal with India by November.
No other nation drinks as much whisky as India, which should have Scotland’s world-famous industry celebrating.
But each bottle of Scotch sold in India comes with a hefty price tag attached, thanks to tariffs of 150 per cent on imported liquor.
Currently, the majority of whisky consumed in India is made within its own borders, with Scotch whisky accounting for just 2 per cent of the market.
According to the Scotch Whisky Association, doing away with such tariffs could mean exports rise by £1 billion over five years.
While the particular ingredients of such a deal have still to be distilled there can be no doubt that the future potential is attractive.
By 2050, India may be the third largest global economy.
That means a booming middle class with vast disposable income to splash.
Getting a larger slice of that could be a substantial post-Brexit win, particularly since a free trade deal with the US has remained elusive.
Not quite ready to raise a toast for this one but watch this space.
With green initiatives on track, inward investment flowing and export markets booming, there is real confidence in the Scotch whisky business, and it looks set to remain a dominant force in Scotland’s economy – slàinte mhath!
Newsagents in the News
It’s not every day that newsagents themselves make the headlines but it’s been a rocky few weeks for the staff at local McColl’s stores across the UK as fears of job losses and administration were quickly turned around by a supermarket superhero coming to the rescue.
The familiar UK newsagent started in Glasgow back in 1901 after its establishment by Scottish footballer, Robert Smyth McColl. It has since grown into a local store empire of around 1,160 stores, 16,000 staff with an approximate turnover in excess of £1 billion per annum.
However, due to ongoing issues caused by a struggling product range and pandemic-related supply issues, the convenience store began to make the news rounds as threats of administration, to cover losses, began to rear its ugly head.
As of last week though, it appears that the staff and retailer have been saved after a bit of a supermarket sweep from new buyers including EG Group and Morrisons, with the latter taking the grocers and all 16,000 staff, redundancy-free, which is incredible news for workers caught in the midst of what could have been a much more catastrophic affair.
While I expect a number of these McColl’s stores may be queuing up for a rebrand, as Morrisons offer to pay the group’s £170m debts, it’s a remarkable affair to see words such as ‘stability’ and ‘continuity’ thrown into the pick n’ mix for a business story of this magnitude.
It’s always a hard challenge to face news about a long-standing Scottish business facing uncertainty but I’m glad that such a key part of everyone’s community, like McColl’s, can stay afloat and stay convenient for both consumers and the wider economy.
It Made Me Laugh
Easier Said Than ‘Doner’
It’s a tough task to stand out for the hospitality crowd, especially amid some juggernauts of industry, but a Glasgow takeaway has ‘doner’ just that with a record-breaking stunt that’s been a tasty treat for the TikTok crowd.
Yayas Glasgow, which has takeaways on Paisley Road West and Fenwick Road in the south of the city, captured the attention of social media with the announcement of a supersize version of their doner wrap dish, claiming to have made the ‘biggest doner wrap in the UK’.
The creation of the colossal cuisine has sparked over 600k views and planted the takeaway firmly on the menu of many a local food fan.
It goes to show, it’s not the size of your social following (or doner wrap) that matters, it’s how you use it to really boost your business.
It Made Me Weep
Fight or Flight
It wasn’t so long ago we saw the eco-friendly frenzy spurred by COP26 when many companies reviewed their policies and promised more sustainable ways to run their business.
However, research from the European Federation for Transport and Environment (T&E) shows some Scottish businesses could go further when it comes to reducing business travel emissions.
It puts the spotlight on some 230 European and US companies based on a variety of factors such as reduction targets, reporting and travel emissions.
T&E’s UK director Matt Finch wants to see companies “travelling smart” and considering alternatives to domestic flights where appropriate – reminding us of the productivity benefits of being able to work on the move on trains for example.
He acknowledges that business travel can’t always be avoided, but I definitely don’t think it can do any harm to remind companies to weigh up all the options available before they make those bookings.
After all, lockdown did show us that a lot of business can be carried out well, and cost-effectively, without travelling for every single meeting.
Q&A
Q1: I took early retirement from a logistics firm and want to do some consulting for lifestyle reasons, not money. Should I worry about insurance, and how much should I charge?
A: Yes, protect yourself properly. Set up a limited company, and ensure you have liability insurance. Charge commercial rates even if it’s a lifestyle business—don’t undervalue your expertise. You can always adjust your rate for specific projects you find interesting.
Q2: My landlord went bankrupt and a liquidator sent me a rent invoice. I run a profitable salon. Should I worry about my lease?
A: No need to panic. The lease terms remain in force. The liquidator acts as your landlord for now. You may wish to contact them—there could be an opportunity to buy the property yourself.
