Job fears: Whyte and Mackay issued warning over minimum pricing
Leading whisky maker Whyte and Mackay has said it will cut 300 jobs and be forced to close its bottling plant in Grangemouth if the Scottish Government introduces minimum pricing for alcohol.
The drinks manufacturer of brands such as Famous Grouse and Bell's Whisky warned the plans would be "disastrous" and could "decimate" the own label drinks market. The firm, which employs 480 people in Scotland, will speak out against the controversial measure at Holyrood today.
Members of the Health Committee are considering proposals put forward by ministers to tackle Scotland`s drink problem. They will question John Beard, chief executive officer of Whyte and Mackay, on the issue.
In a submission to the committee, the whisky boss said minimum pricing could lead to 300 job losses in his firm, stating: "We anticipate that our bottling plant in Grangemouth, which employs 200 people, would close.
"Our production levels would also be affected, so there would be a knock-on effect at our distilleries. Our best estimate is that another 100 jobs would be at risk."
Mr Beard said the firm was the leading supplier of own label whisky and added: "From our company perspective, we have no doubt that minimum pricing will decimate the own label market. This, in turn, will lead to significant job losses at Whyte and Mackay, across our distilleries, our bottling plant and our distribution centres."
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Mr Beard argued minimum pricing could mean that own label whiskies would be in the same price range as brands such as Famous Grouse and Bell's Whisky and added: "That being the case, the role and need for own label products disappears altogether.
"As the leading supplier of own label whisky, this would be disastrous for our business."
Mr Beard continued: "Whyte and Mackay, a company established in 1844, would essentially cease to exist in anything but name only."
The committee will also hear from drinks giant Tennent's, which has already giving its backing to minimum pricing.
In his submission to the committee, Mike Lees, managing director of Tennent Caledonian Breweries, said there was an "issue with a small group of consumers who purchase cheap alcohol in bulk, drink excessively at home and then go out into pubs and clubs and get into difficulties".
He added: "We believe that, if implemented appropriately, minimum pricing could be part of the solution by increasing the price of alcohol, particularly of high-strength products, and is one way of addressing the alcohol abuse issues that we face in Scotland.
"Consequently, Tennent's supports the proposals to introduce minimum pricing so long as the measures proposed are fair, proportionate and part of an overall programme to reduce the abuse of alcohol.
"We believe passionately that responsible adults have the right to enjoy drinking sensibly and we believe that minimum pricing, when combined with other measures, may contribute to an improvement in society."
