azazel wrote: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.
Where does it say that they're "shutting down all production for at least two years"?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.
Without knowing the details of the company's finances it's nothing more than wild speculation to suggest it's a cashflow problem. I'd suggest that the guy who owns Springbank has been around long enough to know how best to run his business, which, don't forget, is run unlike any other whisky company in the world. When I was at the distillery earlier this year they said that production costs had almost DOUBLED in the space of a year. That a bit more than a marginal increase in anyone's book.
Spirit of Islay wrote:
Don't Panic !
Sorry couldn't resist.....
Crieftan wrote:Two weeks - not a planned 6 months or 2 years. The Islay boys stopped producing because they had no choice - and I bet they weren't happy about it.
The Springbank situation seems to be an entirely different matter.
weetoon1 wrote:Remind me what distillery do you Guys run?
They never said they were closing down for 2 years or more!
The only mention of 2 years was in the Courier... Who have no quotes
as Springbank did not talk to them. In fact they were asked not to print anything until the staff were informed.
As far as I know the duty thing was never mentioned apart from in the Courier. The courier also recently printed a doctored picture of a cat...claiming there was a puma loose in Argyll... So much for facts.
I read in the Kintyre forum they expect to distill January 2009
thats 6 months not 2 years.
I for the sake of my hometown that they manage as they have in the past to ride this storm (in a teacup ) and remain open as Scotlands oldest privately owned Distillery.
Newbie wrote:More info regarding the 'rumour'!
weetoon1 wrote:I do not work at Springbank!
I am friendly with a manager
The courier asked for a quote, and the co sec asked them not to print until staff informed. So they printed anyway,even if they had to make it fit roumors they heard round town!