Crieftan wrote:I love Jumpingbank - especially the 10yo
There's more chance of FeisIslay selling Nick a bottle of HP QOS than this being true.................I hope
Nick Brown wrote:Basically: Springbank's got too much stock in the warehouse and will close for a while until there's more room (next year they won't produce anything) - the workers have already been notified. It's called streamlining or mothballing. One can hardly believe in the present boom in which new distilleries are being opened. And with the building of Glengyle, tragic. I hope they get back up and running in a year's time..
Nick Brown wrote:I've no idea whether or not it's true. I speak German but, alas, missed out on the predicting the future classes. It's plausible because lots of distilleries operate on this kind of basis and Springbank may not want to tie up lots of money in more stock in the lead up to a recession. Springbank has had financial problems in the past, I think, and traded through it by offloading all their old stock at very low prices. That probably leaves them in quite a precarious position now.
jazz lover wrote::evil:
time to stock up!!!
Willie JJ wrote: Why the hell don't they build a new shed? Unbelievable!
corbuso wrote:...I don't believe in the story of warehouses full.
MrTattieHeid wrote:corbuso wrote:...I don't believe in the story of warehouses full.
Again, no one has said this--it seems to me a misinterpretation. It's "too much stock in the warehouse", not "too much stock for the warehouse". In other words, more stock than is necessary for projected needs--warehouse space is irrelevant.
Willie JJ wrote:If you just want VFM Adrian I would go for the 100 proof 10yo.
WORKERS at Campbelt[url]own's fa[/url]mous Springbank Distillery will find out what the future holds for them today (Friday) after being told that the business is looking for voluntary redundancies in its production department.
The Courier has been told by workers at Springbank that a minimum of seven employees at the distillery are to be paid off. The option of voluntary redundancy has been made by letter to staff and those willing to accept were invited to apply by Monday of this week.
The Courier understands that Springbank is looking to stop production for two years; a situation that has happened before in the distillery's history.
sievm wrote:I hope that this doesn't lead to a longer term issue with the future of Springbank. The implications are that it might.
azazel wrote:I'd imagine that if they can calculate roughly how much it's going to cost to make whisky with some confidence, they'll be able to adjust their prices and spending accordingly.
Nick Brown wrote:sievm wrote:I hope that this doesn't lead to a longer term issue with the future of Springbank. The implications are that it might.
Indeed. Shutting down all production for at least two years is not a move made by a successful company. That's a move borne of desperation.
Nick Brown wrote:azazel wrote:I'd imagine that if they can calculate roughly how much it's going to cost to make whisky with some confidence, they'll be able to adjust their prices and spending accordingly.
I doubt that it's to do with the price of oil and barley. It's most likely about cashflow. The company must be stretched by the production costs of both Springbank and Glengyle, whilst the stock they hold is relatively young and will only be able to be sold at quite modest prices. It would be different if they had a stock of 25yo to knock out at superpremium prices, but they don't. Perhaps they had budgeted on a very tight cash flow anyway and the marginal increase in production costs means that it has gone beyond the level that could be supported by sale of their 10yo. But shutting down production gives them breathing space now, but will cause a problem 10 years down the line (if they get that far) where they have no stock to sell but production costs to meet.