THE managing director of Ian Macleod Distillers has said the whisky firm is exploring ways of working more closely with Edinburgh Gin owner Spencerfield Spirit Company, and did not rule out buying the business if the opportunity arose.

Leonard Russell was commenting amid mounting industry speculation that Ian Macleod has struck a deal to acquire Fife-based Spencerfield.

Ian Macleod, distiller of the Glengoyne and Tamdhu malts, has a long-standing commercial relationship with the company, which was established by former Glenmorangie and Whyte & Mackay director Alex Nicol and his wife Jane in 2005.

The distiller bottles Edinburgh Gin in Broxburn and distributes the spirit around the UK, while also supplying whisky for its Pig’s Nose and Sheep Dip blended Scotch products. Spencerfield distils its gin in Leith and operates a visitor centre in partnership with Heads & Tales, a bar in the basement of Edinburgh’s Rutland Hotel.

Speculation has been rife that Ian Macleod has acquired Spencerfield outright in a multi-million pound deal. Mr Russell said his firm’s focus was more on developing existing commercial links with Spencerfield, but said that if the current owners “wanted out we would consider it”.

“It’s wrong to say we would not acquire it under any circumstances,” he said.

Mr Russell added: “The story there is that Alex and Jane Nicol, who own the Spencerfield Spirit Company, have been friends of mine for 30 years.

“Alex used to be the marketing director at Glenmorangie so I’ve been a pal of his for a long time. We’re just doing more business with them. We’re formalising an agreement to distribute more Edinburgh Gin in the UK. We are getting closer, but we have not purchased Spencerfield Spirit Company.”

Mr Russell acknowledged there have been “quite a lot of rumours” that a deal had been done, which he suggested was down to the success the Ian Macleod team is having in selling Edinburgh Gin into Scottish outlets. “I can’t go into a bar without people saying I love your Edinburgh Gin,” he said. “We do distribute it, although Alex and Jane do put it into farm shops and things.”

Spencerfield declined to comment.