Harris gin distillery cuts production and staff – Daily Business

An island distillery says it will cut production and its workforce amid “challenging headwinds” in the spirits industry.

The maker of Isle of Harris Gin, and also the first single malt whiskies on Harris in almost 200 years, employs 50 people, having grown from 10 when it launched ten years ago. It has represented a £20m investment in the island economy.

Three years ago the distillery secured £10m from HSBC to pay to drive exports to about 20 markets, including the US, Canada, France and Germany.

Managing director Simon Erlanger said difficult decisions had to be made in view of rising cost and market pressures. This would mean restructuring the business.

He said: “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.

“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.”