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Loch Lomond Distillers

Whisky Concerns


LOCH  LOMOND  DISTILLERS

Capacity:
Glen Scotia: 750.000 litres
Loch Lomond: 10.000.000 litres  grain & 4.000.000 litres    malt

Hillhouse buys Loch Lomond
June, 2019

Loch Lomond Hillhouse Capital Management
Hillhouse Capital Management, a global investment firm which describes itself as focusing on “innovative businesses in growth industries”, has bought scotch whisky producer, the Loch Lomond Group, from Exponent Private Equity.

Financial terms of the deal were not disclosed.

Since the original buyout of Loch Lomond from the Bulloch family in 2014, the company says it has invested significantly in growing its portfolio of brands, distillery and bottling infrastructure, global distribution platform, and management team. The business now generates about 70% of its revenue from more than 120 international markets, versus fewer than 10% at acquisition.

The announcement states that teaming up with Hillhouse offers a strong partner for the business to further develop its international presence, particularly in Asia where whisky has become increasingly popular in recent years, and a market where Hillhouse has deep knowledge and strong business relationships.

Hillhouse says it also brings to the partnership a strong track record of building long-term relationships with innovative consumer brands, such as Peet’s Coffee and Gimborn, in helping them expand their global presence and reputation.

Loch Lomond has a history dating back to the early 19th century and is a leading international producer of malt, blended and grain whisky.

Its key premium scotch whisky brands include Loch Lomond – ‘The Spirit of the Open’, Glen Scotia, and Littlemill, which claims to be the ‘oldest licensed distillery in Scotland’. It also produces the ‘High Commissioner’ and Loch Lomond blended scotch whiskies, as well as Glen’s vodka and Ben Lomond scottish gin.

The company’s production spans sites across Scotland. It operates its Loch Lomond malt and grain distilleries at Alexandria in Dunbartonshire, Glen Scotia distillery in Campbeltown, Argyll and has its own bottling plant in Ayrshire.

Loch Lomond CEO Colin Matthews said: “Over the past five years we are proud to have transformed The Loch Lomond Group into a premium international spirits business with a strong focus on innovation and a portfolio of award-winning brands.

“We believe now is the right time to move forward into the next stage of our growth strategy as we look to innovate further, extend our portfolio of brands and continue to expand our international presence, particularly in Asia where Hillhouse has significant experience.

“The team at Hillhouse have impressed us immensely, and we look forward to partnering with them as we embark on the next exciting stage of our journey. We share both their vision and dedication to premium consumer brands."

Hillhouse Capital partner, Wei Cao, added: “Hillhouse’s experienced operational team will work closely with Loch Lomond’s management to help it offer a premium consumer experience in international markets through channels like e-commerce and new retail.

“We believe that the strongest advantages in business are innovative and differentiated products and management teams, which is why we are so excited to help Loch Lomond realise the potential of its outstanding brands in huge new consumer markets, such as Asia.

LOCH LOMOND GROUP UNDER NEW OWNERSHIP
June 2019
An Asia-based investment firm is buying out Loch Lomond Group, which owns Glen Scotia distillery in Campbeltown as well as the Littlemill single malt brand.

Loch Lomond barrel
New owner: Loch Lomond Group’s Scotch whisky operations are now owned by Hillhouse
Hillhouse Capital Management, a global investment management firm, will acquire the Scotch whisky producer from current owner Exponent for an undisclosed sum.

The deal includes the sale of the Loch Lomond malt and grain distillery at Alexandria in Dunbartonshire, Glen Scotia distillery in Campbeltown, a bottling plant in Catrine, Ayrshire plus the remaining stocks of closed distillery Littlemill.

Colin Matthews, CEO of Loch Lomond Group, said the buyout would enable to company to grow further internationally, particularly in Asia.

He said: ‘We believe now is the right time to move forward into the next stage of our growth strategy as we look to innovate further, extend our portfolio of brands and continue to expand our international presence, particularly in Asia where Hillhouse has significant experience.’

Loch Lomond has been under the ownership of UK-based private equity management firm Exponent since 2014, when it was acquired from the Bulloch family.

Diverse portfolio: Loch Lomond Group also owns Glen Scotia distillery in Campbeltown

In the last five years Loch Lomond’s business has grown internationally, with overseas markets now representing 70% of the business, as opposed to less than 10% in 2014.

Wei Cao, partner at Hillhouse Capital, said: ‘Loch Lomond’s rich heritage in Scotch whisky gives the business a distinct advantage as they look to further build on their success across the world, especially in the increasingly discerning Asian spirits market.

‘Hillhouse’s experienced operational team will work closely with Loch Lomond’s management to help it offer a premium consumer experience in international markets through channels like e-commerce and new retail.

‘We believe that the strongest advantages in business are innovative and differentiated products and management teams, which is why we are so excited to help Loch Lomond realise the potential of its outstanding brands in huge new consumer markets, such as Asia.’

As well as the Loch Lomond, Glen Scotia and Littlemill whiskies, the group also produces the High Commissioner blend, as well as Glen’s vodka and Ben Lomond gin


Scotland: New whisky regs may force distillery changes
November, 2009
Scotland; Loch Lomond Distillery could be forced to close part of its production if the new Scotch whisky rules aren’t amended before they come in to force on November 23.

The new regulations say: “Single Malt Scotch Whisky” means a Scotch Whisky that has been distilled in one or more batches—

(a) at a single distillery; (b) from water and malted barley without the addition of any other cereals; and (c) in pot stills.”

Loch Lomond Distillery Company makes more than 20 million bottles of High Commissioner, but not in pot stills.

For the last two years the company, which is based in Alexandria near Glasgow, has been using an energy efficient single still.

A statement from the distillery said that unless consumers lobby MPs to adapt the new regulations governing what kind of stills can produce whisky, they may have to shut down some of their production process.

The distillery decided to use the single still as part of its drive to be more energy efficient. It also uses lightweight glass to reduce the amount of packaging sent to landfill and has been honoured by the Carbon Trust for 'Outstanding Achievement in Manufacturing Energy Efficiency' after installing a system which recycles heat and water used in the distilling process.

John Peterson, distilling director of Loch Lomond said: "We have a method that produces a very good malt but we are being penalised.

"We want to make the process better and save considerable amounts of energy. As it is we are preventing more than 1,400 tonnes of CO2 being released every year.

"Politicians are quick to shout about climate change and how industry has to find new ways to conserve energy and reduce carbon output but when companies like us try to do something innovate we get slapped down for it.

"We need a proper discussion on this. Our customers who enjoy good quality whisky at reasonable prices, and who want to continue doing so, need to ask their MP to object to the legislation before it's too late."
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