Isle of Arran Distillers celebrates anniversary with record results Teenage distiller is maturing nicely

ISLE of Arran Distillers, one of Scotland's youngest whisky companies, yesterday posted record results and unveiled plans to expand production by 40%.

The company, which this year celebrates its 16th anniversary, said it planned to invest £350,000 to expand production by 100,000 litres of alcohol at the distillery.

It said the investment would include the purchase of oak barrels for the whisky-maturation process.

The move comes on the back of 42% year-on-year growth in brand sales for Isle of Arran.

At the same time, exports were up 45%, compared to the export growth of 10% for the total Scotch whisky market.

Meanwhile, sales of The Arran Malt in France were a notable success, growing 86%. Other marked gains were made in Canada and Taiwan, and the company said the brand continued to outperform more established rivals in Norway.

Operating profits surged by more than 450% to £173,028 on turnover up 27% on the previous financial year to £2.7 million.

The drinks industry minnow, which has its headquarters in Stirling but produces whisky from a distillery nestled in a verdant glen at the north of the Arran overlooking the village of Lochranza, also reported a "bottom-line improvement" of £133,670 over 2009.

Managing director Euan Mitchell said: "We are delighted to report record results that are a testament to the strength of the business created and the commitment to a long-term sustainable operation.

"What is most exciting about the progress we have made is that we now have the platform to create a whisky brand that enjoys outstanding consumer appeal and commercial success.

The visitor centre at the distillery at Lochranza also posted record numbers, with more than 68,000 people coming through the doors last year.

Established in late 1995, the distillery was the brainchild of Harold Currie - the former Chivas chief who raised £1.2m to establish the Arran distillery through a founder's reserve bond - and his son, Andrew.

However, in 2001, the majority stake in the company was acquired by Lafor Management, although the company now has a number of shareholders.

Mr Mitchell said: "We know where we want to be in terms of creating a reputation for exceptional single malts, especially at 10, 14 and 18 years old.

"In the past year, we have launched the 14-year-old malt with great success and our first peated malt - Machrie Moor - was sold out on advance orders alone in December 2010.

"A clear focus on product quality, supported by brand investment, means we know consumers in all major markets are interested in our products and understand the Arran style of malt."

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