File photo dated Oct. 16, 2018. Harris gin bottles from the Isle of Harris Distillery. (Photo: Press Association via AP Images)
The critically acclaimed Isle of Harris Distillery has announced plans to reduce its production capacity and workforce in the face of industry headwinds. The facility is reportedly the largest employer in its namesake region and represents a £20 million ($26.8 million) investment in the local economy.
First opened in 2015, the distillery is best known for Isle of Harris Gin, a maritime-inspired spirit infused with sugar kelp seaweed. It's also home to The Hearach, the first single malt scotch whisky produced on Harris in almost 200 years.
Managing director Simon Erlanger attributes the cutbacks to broader difficulties in the spirits business, though he didn't cite specifics.
“Much like our colleagues in the wider spirits industry, we are facing challenging headwinds which have led to some incredibly difficult decisions," Erlanger told The Herald. "Following a number of cost-cutting measures, voluntary redundancy is being offered to staff in the first instance, with compulsory to follow thereafter if we do not fulfil our cost reduction target."
The facility reportedly employs between 45 to 50 people. According to the brand's website, the population of the surrounding Isle of Harris has declined by almost 50% over the past 50 years, changes that the distillery says "threaten local traditions, culture and language." Located on the southern tip of the Lewis and Harris island in Scotland, the area is home to just under 2,000 residents, approximately 1,200 of whom speak the region's native dialect, Gaelic.
Founder Anderson "Burr" Bakewell created the Isle of Harris Distillery as a means to give back to the community and provide sustainable, long-term careers. In addition to producing spirits, the brand participates in give-back programs including beach cleans, fundraisers and donations to the local football club, Harris FC.
Local news outlet We Love Stornoway reports that the facility was unexpectedly closed to visitors as of Tuesday.
Isle of Harris isn't the only name facing a slowdown in the spirits market. In January, the nearby Glenglassaugh Distillery announced that it was temporarily pausing production amid a "change in corporate activities." A month later, the powerhouse distillery behind Jameson, Redbreast and Midleton Very Rare announced an extended production pause of its own.
Throughout 2024, the main culprit behind the downturn appeared to be a decline in spirits consumption, inflation and the aftershocks of the COVID-19 pandemic. Ongoing drama surrounding tariffs has only worsened the issue, particularly for brands that specialize in protected designation of origin products like tequila, cognac or scotch.
"It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business," Erlanger added. “We remain true to our founding purpose as a sustainable, multi-generational firm built to support the community for many years to come."
