Springbank rumour distillery to be mothballed?

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fishboy
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Springbank rumour distillery to be mothballed?

Postby fishboy » Mon Jun 23, 2008 4:54 pm

I've just pulled the following post from the Springbank society forum, so its now third hand (it was pulled originally from a german whisky forum). Apparently Springbank is to be mothballed!!!! :shock: :shock: :shock:

"Springbank to be mothballed
Antworten Zitieren Favoriten Kontakt
Gerücht:
Springbank hat zu viel im Warehouse und wird erst mal schließen, bis wieder was geht (nächstes Jahr wird nichts produziert) - die Arbeiter sind bereits benachrichtigt worden. Es heißt "streamlining" oder kurze Schließung, was immer da nun rauskommt.
Kann man in dieser Boomzeit kaum glauben, in der neue Distillen aus dem Boden schießen.
Und das mit dem Bau von Glengyle...traurig. Ich hoffe, Sie fangen sich in einem Jahr wieder.

Schade!!!"


Can anyone provide a decent translation (M-T? Anyone?)

Something about the Warehouse being full? Surely this can't be true...must be some other explanation (maybe closing to work on Glengyle?). Should have worked harder on my German at school.

FB

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Mon Jun 23, 2008 5:00 pm

Answers quoting favorite contact Rumor: Jumping bank has too much in the Warehouse and will only times close, until again which goes (next year is not produced anything) - the workers were already informed. It is called " streamlining" or short locking, which rauskommt always there now. One can hardly believe in this boom time, in which new Distillen from the ground shoots. And with the building of Glengyle... sadly. I hope, you am caught in one year again.

Thats what babelfish gives us.
I love Jumpingbank - especially the 10yo :D

There's more chance of FeisIslay selling Nick a bottle of HP QOS than this being true.................I hope :?

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Mon Jun 23, 2008 5:04 pm

Basically: Springbank's got too much stock in the warehouse and will close for a while until there's more room (next year they won't produce anything) - the workers have already been notified. It's called streamlining or mothballing. One can hardly believe in the present boom in which new distilleries are being opened. And with the building of Glengyle, tragic. I hope they get back up and running in a year's time..

Shame.

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Re: Springbank rumour distillery to be mothballed?

Postby fishboy » Mon Jun 23, 2008 5:11 pm

Crieftan wrote:I love Jumpingbank - especially the 10yo :D

There's more chance of FeisIslay selling Nick a bottle of HP QOS than this being true.................I hope :?


I too love jumpingbank, although I favour the 15 year old.

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Re: Springbank rumour distillery to be mothballed?

Postby fishboy » Mon Jun 23, 2008 5:15 pm

Nick Brown wrote:Basically: Springbank's got too much stock in the warehouse and will close for a while until there's more room (next year they won't produce anything) - the workers have already been notified. It's called streamlining or mothballing. One can hardly believe in the present boom in which new distilleries are being opened. And with the building of Glengyle, tragic. I hope they get back up and running in a year's time..

Shame.


Thanks Nick - What do you think? Any possibility of this being true?
For myself, given the complete lack of any really old stock (the oldest cask in the warehouse is only 19 years old) and the low volume of production, I'd be surprised if they'd reached their storage capacity. But stranger things have happened.

Nothing as strange as Nick buying an HP QoS from FI though I admit....

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Mon Jun 23, 2008 5:21 pm

I've no idea whether or not it's true. I speak German but, alas, missed out on the predicting the future classes. It's plausible because lots of distilleries operate on this kind of basis and Springbank may not want to tie up lots of money in more stock in the lead up to a recession. Springbank has had financial problems in the past, I think, and traded through it by offloading all their old stock at very low prices. That probably leaves them in quite a precarious position now.

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Re: Springbank rumour distillery to be mothballed?

Postby fishboy » Mon Jun 23, 2008 5:27 pm

Nick Brown wrote:I've no idea whether or not it's true. I speak German but, alas, missed out on the predicting the future classes. It's plausible because lots of distilleries operate on this kind of basis and Springbank may not want to tie up lots of money in more stock in the lead up to a recession. Springbank has had financial problems in the past, I think, and traded through it by offloading all their old stock at very low prices. That probably leaves them in quite a precarious position now.


I wasn't expecting you to predict the future or to demonstrate inside knowledge of any mothballing. I was merely asking for an opinion (hence the "what do you think?") which you kindly provided - thanks.

FB

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Re: Springbank rumour distillery to be mothballed?

Postby Di Blasi » Mon Jun 23, 2008 5:38 pm

I wouldn't believe this, maybe it's a delayed April Fool's, or maybe April Fool's happens in Campbeltown a few months later??
Either way, if it is true, perhaps it's smarter for them to contact the marketing team at Bruichladdich for assistance!! :lol: :?

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Re: Springbank rumour distillery to be mothballed?

Postby jazz lover » Mon Jun 23, 2008 6:39 pm

:evil: :evil: :evil: :evil:
time to stock up!!!

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Re: Springbank rumour distillery to be mothballed?

Postby Newbie » Mon Jun 23, 2008 7:19 pm

Can't believe this is true, perhaps Lawerance who just visited Springbank can shed some light on this matter!

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Re: Springbank rumour distillery to be mothballed?

Postby vengey » Tue Jun 24, 2008 7:37 am

jazz lover wrote::evil: :evil: :evil: :evil:
time to stock up!!!


Or is it? ;-) Maybe it's about to get cheaper.

I would suspect any over production must of happened in the past few years, when the global economy was booming. I can't see them being full of older stuff.

Could be they are just being cautious and this is a 1 year wait and see thing.

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Re: Springbank rumour distillery to be mothballed?

Postby kallaskander » Tue Jun 24, 2008 9:10 am

Hi there,

the rumour originates from the member of a well known German whisky club. They say they have it from somebody who visited the distillery and heard it there.

There is nothing official about that story as yet from any source who has authority to make such anouncements, e.g. nothing from Springbank on the subject!

The first post in this thread was clearly marked as "rumour". There is nothing new on this subject in the German forum as yet.

http://whisky.de/Forum/forums/thread/93402.aspx

Greetings
kallaskander

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Re: Springbank rumour distillery to be mothballed?

Postby WhiskyViking » Tue Jun 24, 2008 9:16 am

Since we're posting links to other forums in this thread I might post a couple also:

I first read about this in a Norwegian Forum who also had it from the German one, but also with a note from a Swedish Forum where a gentleman also knew about it (supposedly directly from Springbank). But this gentleman rang up the Swedish importer of Springbank, who didn't know about it, who in turn rang Springbank directly. According to this gentleman the rumour was confirmed, and a press release will be issued towards the end of the week.

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Re: Springbank rumour distillery to be mothballed?

Postby Reggaeblues » Tue Jun 24, 2008 11:24 am

Jazz-Lover is right, I believe...save Jumpingbank! Buy Cambeltown!

Let's hope stocks of Longline and Hazelfire are unnaffected.

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Re: Springbank rumour distillery to be mothballed?

Postby jazz lover » Tue Jun 24, 2008 1:54 pm

Willie you are a GENIUS!!!

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Re: Springbank rumour distillery to be mothballed?

Postby fishboy » Tue Jun 24, 2008 1:59 pm

Willie JJ wrote: Why the hell don't they build a new shed? Unbelievable!


I've certainly go room in my shed for at least a couple of casks. I'll drop them a line and offer my help.

:wink:

Seriously though, there must be more to it than warehouse space? If they knew this was going to be an issue why build Glengyle which is only going to exacerbate things. :headbang:

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Tue Jun 24, 2008 3:53 pm

I don't think "too much stock in the warehouse" means insufficient storage space. More likely it's that stock is piling up faster than sales projections. In other words, there is more than enough stock available to fill projected needs. Probably not anything to worry about overmuch, unless you're a laid-off Springbank employee.

I wonder if there's more to this story--a possible refurbishment or brand makeover (to start two more unfounded rumors). Let's see what the press release says.

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Tue Jun 24, 2008 4:22 pm

It may well be a cashflow issue. I think Springbank has not had smooth finances in the past. That's when they sold off all their old stock for very low prices. If all their money is now tied up in young stock and given that they have started out on a new distillery that won't yield anything for a few years, they may well be in some difficulty. Distilling is not about selling whisky at prices it cost to produce, it's about balancing sale of stock against current production costs. If they are in trouble, they might have decided to stop paying for production and worry about the consequences later.

But perhaps they are being cautious. Whilst they can sell stock now, they may worry that holding a lot of slow-maturing stock is a risk in a recession, especially if their business model requires them to price their whisky quite highly. They may fear a wave of casualties in the next few years and want to plan for it.

Who can say - one thing's for sure, they aren't going to be totally candid about their thinking.

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Re: Springbank rumour distillery to be mothballed?

Postby corbuso » Tue Jun 24, 2008 5:13 pm

It is still a rumour and would be suprised if that they are really reducing their activities. Sales are going well with their new releases and I don't believe in the story of warehouses full.

Corbuso
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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Tue Jun 24, 2008 7:10 pm

corbuso wrote:...I don't believe in the story of warehouses full.


Again, no one has said this--it seems to me a misinterpretation. It's "too much stock in the warehouse", not "too much stock for the warehouse". In other words, more stock than is necessary for projected needs--warehouse space is irrelevant.

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Re: Springbank rumour distillery to be mothballed?

Postby I_SPEY » Tue Jun 24, 2008 7:56 pm

I've heard from a wellknown whisky-shop in Holland, that it might be a commercial trick.IMHO: the only two things we can do is: wait or buy.
The collectors have to drink their own stock and the drinkers have to run for getting more stock.

Anyway, I don't believe SP.

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Re: Springbank rumour distillery to be mothballed?

Postby irishwhiskeychaser » Tue Jun 24, 2008 8:24 pm

MrTattieHeid wrote:
corbuso wrote:...I don't believe in the story of warehouses full.


Again, no one has said this--it seems to me a misinterpretation. It's "too much stock in the warehouse", not "too much stock for the warehouse". In other words, more stock than is necessary for projected needs--warehouse space is irrelevant.



I'm with you on this one Mr T-H and with a very possible world recession looming it is not the worst think they could do in cooling down their production. Mothballing may even be too strong a word for it. Anyway how much springbank is going to disappear off the shelves between now and a press conference .....

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Re: Springbank rumour distillery to be mothballed?

Postby irishwhiskeychaser » Tue Jun 24, 2008 9:24 pm

Willie what's your top affordable Springbank?

I read in another thread that you mentioned the batch variability. It is a great malt but I do hate it when you getting something a bit less that you expected. Same sort of issue with Talisker 10yo

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Re: Springbank rumour distillery to be mothballed?

Postby les taylor » Tue Jun 24, 2008 9:38 pm

Willie JJ wrote:If you just want VFM Adrian I would go for the 100 proof 10yo.



I'm with you on this one Willie it's a staple in my collection. Being Cask strength as well t's great value for money. This is how the Great One describes it.

Springbank 100 Proof OB 10yo 57%alc. Bottling of the Year 2004

That's more like it! An Ace! Loch Fyne Whiskies Bottling of the Year 2004!

Powerfully sweet with a hint of peat, this is a good medium-weight Springbank (not like the sherried monster that was the old 100 Proof), there's a growing fruitiness, especially pears.

The swallow has smoke, and, something very unusual that I'd describe as an explosive after-finish!


He Quite likes the 15 as well. :)

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Re: Springbank rumour distillery to be mothballed?

Postby irishwhiskeychaser » Tue Jun 24, 2008 10:02 pm

Cheers to all my mentors :wink: :thumbsup:

Just decided to look up my tasting notes and I was raving about the 100 proof .......


I wonder was I just raving or did I really like it :lol:

Okay another one for the hit list :thumbsup:

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Re: Springbank rumour distillery to be mothballed?

Postby kallaskander » Tue Jun 24, 2008 10:49 pm

Hi there,

in the German whisy forum where all originated it has been confirmed that Springbank will be closed from coming Monday for two years.

The emlpoyees have been given their notices.

The participants of the Springbank whisky school currently held there were told that Springbank will close.

One member of the German forum is currently at Springbank and has confirmed that he will see the last day of production at Springbank for two years on Friday.

I give you the link to the German forum.

http://whisky.de/Forum/forums/thread/93402.aspx

The admin there has confirmed that the employees were told about the closure and that there will be a pause for two years.

It is said that there is enough whisky in stock to carry over the time.


No reasons are given.


I can think that it is high time for a refurbishment at Springbank.The old ladsy looked always a bit worn, didn`t she?

Greetings
kallaskander

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Wed Jun 25, 2008 12:08 am

My translation may have given rise to some of the ambiguities. I suggested that they would close until there's more room - that was a bit of interpretation. The actual translation is more like closed until something happens. Mothballing was also my word - the German word has no direct translation but literally means short shutting.

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Re: Springbank rumour distillery to be mothballed?

Postby sievm » Thu Jun 26, 2008 2:08 pm

I've just received a message from one of the guys involved in the Springbank Forum to say that the company will not comment on rumours until a statement is released some time tomorrow,

Cheers,

Malcolm.

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Fri Jun 27, 2008 12:23 am

So it's true, then.

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Re: Springbank rumour distillery to be mothballed?

Postby WhiskyViking » Fri Jun 27, 2008 11:04 am

Still nothing directly from Springbank - but this is from the local paper:
WORKERS at Campbelt[url]own's fa[/url]mous Springbank Distillery will find out what the future holds for them today (Friday) after being told that the business is looking for voluntary redundancies in its production department.

The Courier has been told by workers at Springbank that a minimum of seven employees at the distillery are to be paid off. The option of voluntary redundancy has been made by letter to staff and those willing to accept were invited to apply by Monday of this week.

The Courier understands that Springbank is looking to stop production for two years; a situation that has happened before in the distillery's history.


http://www.campbeltowncourier.co.uk/news/fullstory.php/aid/4642/Distillery_jobs_in_the_balance.html

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Re: Springbank rumour distillery to be mothballed?

Postby WhiskyViking » Fri Jun 27, 2008 2:12 pm

The Swedish importer of Springbank has published Springbank's press release:

PRESSRELEASE

As a consequence of the continuing instability of basic raw material prices, which have doubled within the last year, the management of J & A Mitchell and Company Ltd. have decided to cut back the production of new spirit at their Springbank and Glengyle Distilleries until prices settle. The state of the materials market will be kept under continuous review.

The opportunity will be taken to carry out necessary maintenance work and create the increased warehousing accommodation required for future development. In the short term there will however, regrettably, be a few staff redundancies. There will be no impact on the availability of bottled Springbank whisky or the Kilkerran whisky from its Glengyle Distillery as the Company has ample stocks of young maturing whisky which will enable it to continue supplying its home and export markets as normal.

Chairman
J & A Mitchell and Company Ltd.

Found here.

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Re: Springbank rumour distillery to be mothballed?

Postby sievm » Fri Jun 27, 2008 3:04 pm

The same appears on the Springbank Forum site.

Seems a little optimistic that they think the raw material prices will stabilise at a lower level than they are today in 2-3 years.

Continuing increases in barley and energy prices are, IMO, going to be the norm rather than the exception. World food and energy demand only looks likely to continue to push them up.

It will be interesting to see what happens if they continue to stay at current levels but I hope that this doesn't lead to a longer term issue with the future of Springbank. The implications are that it might.

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Re: Springbank rumour distillery to be mothballed?

Postby azazel » Fri Jun 27, 2008 3:23 pm

It doesn't say anything about stabilising at a lower level, merely stabilising one way or another.

I'd imagine that if they can calculate roughly how much it's going to cost to make whisky with some confidence, they'll be able to adjust their prices and spending accordingly.

At the moment they don't know whether the price of oil, barley etc is going to keep going up and up or even if it might crash.

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Re: Springbank rumour distillery to be mothballed?

Postby Deactivated Member » Fri Jun 27, 2008 3:31 pm

sievm wrote:I hope that this doesn't lead to a longer term issue with the future of Springbank. The implications are that it might.

Indeed. Shutting down all production for at least two years is not a move made by a successful company. That's a move borne of desperation.

azazel wrote:I'd imagine that if they can calculate roughly how much it's going to cost to make whisky with some confidence, they'll be able to adjust their prices and spending accordingly.

I doubt that it's to do with the price of oil and barley. It's most likely about cashflow. The company must be stretched by the production costs of both Springbank and Glengyle, whilst the stock they hold is relatively young and will only be able to be sold at quite modest prices. It would be different if they had a stock of 25yo to knock out at superpremium prices, but they don't. Perhaps they had budgeted on a very tight cash flow anyway and the marginal increase in production costs means that it has gone beyond the level that could be supported by sale of their 10yo. But shutting down production gives them breathing space now, but will cause a problem 10 years down the line (if they get that far) where they have no stock to sell but production costs to meet.

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Re: Springbank rumour distillery to be mothballed?

Postby azazel » Fri Jun 27, 2008 3:52 pm

Nick Brown wrote:
sievm wrote:I hope that this doesn't lead to a longer term issue with the future of Springbank. The implications are that it might.

Indeed. Shutting down all production for at least two years is not a move made by a successful company. That's a move borne of desperation.


Where does it say that they're "shutting down all production for at least two years"?

Nick Brown wrote:
azazel wrote:I'd imagine that if they can calculate roughly how much it's going to cost to make whisky with some confidence, they'll be able to adjust their prices and spending accordingly.

I doubt that it's to do with the price of oil and barley. It's most likely about cashflow. The company must be stretched by the production costs of both Springbank and Glengyle, whilst the stock they hold is relatively young and will only be able to be sold at quite modest prices. It would be different if they had a stock of 25yo to knock out at superpremium prices, but they don't. Perhaps they had budgeted on a very tight cash flow anyway and the marginal increase in production costs means that it has gone beyond the level that could be supported by sale of their 10yo. But shutting down production gives them breathing space now, but will cause a problem 10 years down the line (if they get that far) where they have no stock to sell but production costs to meet.


Without knowing the details of the company's finances it's nothing more than wild speculation to suggest it's a cashflow problem. I'd suggest that the guy who owns Springbank has been around long enough to know how best to run his business, which, don't forget, is run unlike any other whisky company in the world. When I was at the distillery earlier this year they said that production costs had almost DOUBLED in the space of a year. That a bit more than a marginal increase in anyone's book.


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