Whisky industry fires warning shot in battle with Diageo
The scotch whisky industry has united against Diageo in an attempt to prevent it pushing ahead with its Cardhu pure malt brand.
In a crisis that has put the dram back into drama, more than a dozen whisky distillers decided to turn the heat up on the drinks giant at a meeting held at the Glasgow headquarters of Morrison Bowmore distillers this week.
It is believed the lion's share of single malt distillers were present at the meeting, including executives from Allied Domecq, Chivas Brothers, William Grant's and Morrison Bowmore.
They have made it clear in a letter to Diageo and the Scotch Whisky Association (SWA) that the industry is unwilling to compromise on the production of single malt whisky.
A statement read: "Diageo should reconsider the use of the name Cardhu - which has been the name of a single malt scotch whisky for the last 30 years - as a mixture or vatting of malt whiskies. We are confident that sense will prevail."
If Diageo refuse to co-operate, it is expected that industry chiefs will begin legal action.
In response to an "unprecedented growth in demand", Diageo has angered its rivals with the launch of a new version of its well-respected Cardhu single malt brand. The new whisky is a vatted malt brand made up of a mixture of several malt whiskies rather than just the one malt whisky sourced from the Cardhu distillery.
Although Cardhu sells fewer than 1,000 cases in the UK, opponents say it undermines the authenticity of all scotch single malt whisky and will confuse drinkers. Prior to the meeting Diageo had refused to budge from its position and claims that it is merely moving with the times.
In response to the decision by the main Scotch whisky companies, Ian Meakins, Diageo president - Europe and Supply - said: "We are pleased that the companies represented at the meeting have agreed to continue to work through the SWA to resolve the current debate.
"As previously stated, we have at all times sought to resolve the issue with the rest of the industry through the Scotch Whisky Association.
"We remain committed to the long-term future of the SWA as the best forum for continuing this debate and seeking to develop a common and coherent voice for Scotch whisky.
"Diageo's commitment to Scotch whisky is absolute. We want the Scotch whisky category to grow and expand. We recognise that innovating in an industry renowned for tradition over modernity has provoked animated discussion."
The SWA refused to comment.
Related articles:
Diageo defends 'foolish' decision to change whisky (13 November)
Diageo at centre of malt whisky storm (10 November 2003)
