Scotch whisky distilleries across Scotland have paused production to avoid adding to a glut of supply, referred to as a "whisky loch." This follows a global slump in demand for the drink, which had experienced a 15-year boom.
The downturn has led to financial pressure within the industry. Last week, GlenWyvis Distillery in the Highlands announced it would appoint administrators. Workers at Cameronbridge, Diageo’s largest distillery, began strike action on Monday in opposition to plans to cut hundreds of jobs across the company's Scottish operations. Diageo's maturation campus near Kirkcaldy is being expanded to store almost 3 million casks of Scotch.
Industry veteran Nick Morgan noted that people have stopped buying at previous high rates, attributing this to consumers having sufficient stock from pandemic purchases, increased health awareness, and higher prices. The £5.36 billion export market has been challenging to navigate, with a 15% fall in Scotch exports to the US following tariffs in April 2025, despite their later removal. Demand has also fallen in France, while the Chinese market has not met expectations. However, exports to India have surged, contributing to early signs of a tentative recovery in the first half of this year.
Holyrood Distillery in Edinburgh is among those that have paused production. Co-founder Rob Carpenter stated that the industry might be producing around a third of its normal level. He suggested that consumer nervousness and careful spending on luxury items are contributing factors.