THE chairman and chief executive of Chivas Brothers has warned that a British exit from the European Union would be challenging for the Scotch whisky industry.

Laurent Lacassagne was speaking as Chivas, the Scotch whisky and gin business of Pernod Ricard, unveiled its £25 million Dalmunach Distillery on Speyside.

The distillery, which will have the capacity to produce 10 million litres of spirit per year, will primarily produce malt for blended whiskies such as Ballantine's. But production director Gordon Buist revealed Chivas may also release a single malt from the distillery.

Asked if the company had a view on Britain's in-out referendum on EU membership, which the government has promised to hold by 2017, Mr Lacassagne said: "We had the question when the Scottish referendum was debated, and the question of EU membership for Scotland was discussed.

"I would say the same for the UK. The EU has given to our business, like many businesses, the possibility to grow in a very smooth way.

"It would be a challenge to see those things changing."

Mr Lacassagne reiterated that a so-called Brexit would bring challenges to the company when asked directly whether Chivas was opposed to Britain leaving the EU, citing risks to the stability of trading relationships across the bloc.

However he delivered an optimistic outlook for Scotch around the world, stating the Dalmunach investment was a "mark of confidence in the future of our business."

He noted the sector had seen a slowdown in China last year and the year before on the back of well-documented austerity measures. But he noted that, with more than one billion people in China and its economy continuing to grow strongly, consumers are able afford to buy its brands in increasing numbers.

Chivas Regal now holds more than 50 per cent of the premium Scotch whisky market in China, he said, and is continuing to grow that share.

Mr Lacassagne said: "I wouldn't say that China will be an easy road - it's a market where we will need to progress confidence, that's for sure. But we start from a very strong base. I'm very positive about the long-term future of the Chinese market."

Away from China, he pointed to the potential for Scotch in emerging markets in Africa such as South Africa, Angola, Nigeria and Kenya.

Mr Lacassagne added: "I'm still believing that long-term prospect, forecast and potential for the industry are very strong, just because of the potential we see in emerging markets like Africa, India, South America as well, eastern Europe."

The Dalmunach Distillery at Carron, on the banks of the River Spey in Moray, was officially opened by First Minister Nicola Sturgeon yesterday. It will initially be used for blends such as Chivas Regal, Passport and Royal Salute.

However, Mr Buist confirmed the firm would not rule out producing a single malt. He said: "It gives us capacity for the next while for our blended malts. It is a very good blending spirit. We will utilise it across many of our brands.

"If it reaches the right age then we might use it for a single malt as well."

Single malts are typically aged for 10 years or more so any new product will have some time before it reaches shop shelves. But the company is already involved in extending The Glenlivet distillery and Mr Buist said it sees long-term growth potential in both single malt and blended whiskies.