AN independent Islay whisky distiller is on course to increase sales by 65% to more than £10 million this year helped by booming demand for Scotch overseas.
However, Bruichladdich Distillery Company said the success was being driven by growth in established markets such as America and warned that talk of countries such as China becoming big markets for Scotch is premature.
Managing director Mark Reynier said while Bruichladdich was doing business in Asia he doubted the market for Scotch in countries such as China was anywhere near as big yet as recent reports of booming sales in Asia suggested.
"In India and China everyone gets very excited about the numbers but they have not happened yet," said Mr Reynier, a member of the team that re-started production at Bruichladdich in 2001. The distillery was mothballed by Jim Beam in 1995.
Mr Reynier's scepticism contrasts with the faith some other distillers are showing in the potential of countries such as India, where rapid economic growth is creating a new class of affluent consumers who drink whisky to show they have arrived.
Last week, drinks giant Diageo unveiled plans to invest £1 billion ramping up Scotch production, to help meet expected demand from high growth markets like China. However,
Mr Reynier said: "In Russia big firms went zooming in and got very excited about the potential and got their fingers burned.
"Trying to create a market from zero is incredibly expensive.
"We waited and two years later we went in and picked up the benefit of all their hard work."
He added: "In India we are very happy to let those guys throw their money at it. We will come along when they have done that."
Mr Reynier said Bruichladdich was enjoying strong growth in established export markets including America, France, Germany and Scandinavia. The countries at the centre of the crisis in the eurozone, Spain and Greece, are not big markets for the company.
Mr Reynier said Bruichladdich was reaping the rewards for the hard work it had done in building a market for the whisky it produces. The company launched its first 10-year-old malt in September last year.
A former wine merchant, Mr Reynier bought Bruichladdich from Jim Beam for £6.5m in 2000 with a group of private investors.
The latest accounts for the company show Bruichladdich increased turnover by 24% in 2011, to £8.7m, from £7m the preceding year.
Pre-tax profits fell to £880,000, from £905,000 in 2010.
The company paid £80,000 compensation for loss of office to a former director. It parted company with sales director Andrew Gray during the year. Douglas Taylor became commercial director in September last year.
Mr Reynier said: "We needed someone to take us on to the next phase. That's what we have got in Douglas."
The company paid £117,000 bank refinancing and arrangement fees in 2011.
It moved to HSBC during the year from one of the big two Scottish banks, which it has not named.
With around 50 employees, the company is one of the biggest employers on Islay.
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