Diageo defends 'foolish' decision to change whisky
Diageo has hit back at claims that it has undermined the whisky industry by changing its Cardhu single malt brand.
The drinks giant's decision to stop producing the single malt brand and instead release a pure malt product especially for the European market has been heavily criticised in the industry.
A single malt is widely considered to be a finer product than a pure malt because it is produced in one distillery whereas the latter is a mix of several malt whiskies.
Paul Flanagan, communications director for Diageo said: "We are working hard to ensure our fellow industry players fully understand our intent, as well as the business and commercial rationale.
"As a leader in scotch whisky, we fully recognise that where we lead, others may chose to follow. Whatever our position, what we all share is the governing desire to protect and grow the scotch whisky industry."
Rivals including Glenfiddich, Glenfarclas and distillers William Grant & Sons have fiercely protested as have a growing number of politicians. Alex Salmond, former leader of the Scottish National Party (SNP) said this week: "It is probably the most foolish thing I have seen in the whisky industry for 30 years. It seems to be sacrificing long-term consumer confidence for short-term profit."
Sikhender Singh, from whisky distributor Whisky Exchange, said: "What Diageo has done is not correct. Cardhu is a big name and people drink it because they know it as a single malt. Consumers don't read the trade press and won't know the product has changed to blended whisky.
"It has undermined the single malt sector and will take a couple of years to blow over. You just can't change a brand overnight."
However, Mr Flanagan rejected this assessment. "It is clearly important that we communicate the fact that there is a distinction between Cardhu Pure Malt and Cardhu single malt and much of our marketing is aimed solely at achieving this objective," he said.
"We recognise that innovating in an industry renowned for tradition over modernity is likely to provoke debate and discussion. Accordingly, in March 2003 Diageo entered into a period of consultation with the Scotch Whisky Association."
Following discussions with SNP MP Angus Robertson, Diageo had agreed to discuss the issue at the House of Commons earlier this week.
The single malt share of the global scotch market is around five per cent and growing.
Related articles:
Diageo at centre of malt whisky storm (10 November 2003)
