A Scotsman's Return?

Is prominent Indian brewer-politician Vijay Mallya in the run to purchase Scotland-based Invergordon Distillery - Europe's largest grain distillery?

The distillery, on the Cromarty Firth in Ross-shire, was put up for sale by owner Whyte and Mackay for a price tag of nearly 200 million pounds.

Industry sources told IANS that Mallya's United Breweries, the world's second biggest distiller, was on the shortlist to purchase the distillery. Whyte and Mackay announced the sale in December 2005. However, a company spokesman refused to comment on negotiations with potential buyers.

The brewer, United Breweries, was founded by a Scotsman who amalgamated 4 breweries in India around 1915. Meglomania has been well recorded within the growth of many Scottish whisky companies. So collecting drinks companies will have gone full circle if the deal completes.

This means the end of any significant Scotch whisky group, other than Edrington (Famous Grouse, Macallan and Highland Park) being controlled from a Scottish headquarters. The destiny of 75 Single malt distilleries is now outwith the country. Luckily 17 other distilleries are now in smaller family controlled companies, most of whom have only one distillery.

Whyte & MacKay owns the famous Single malt distilleries of Isle of Jura and Dalmore. India has a significant whisky industry of its own, greater in volume than that of Scotland, so this is an interesting takeover. For example their Indian whisky called Bagpiper sells over 10 million cases. United Breweries own a significant number of brands, some French vineyards and a craft-brewery in California called Mendochino (formed from the first Brewpub in California).

Furthermore, United Breweries already has a strategic alliance with Scottish and Newcastle, one of the top 10 brewers in the world. The alliance allows Scottish and Newcastle to market its international brands in India and United Breweries to utilise the former's global network to distribute its Kingfisher brand. Scottish and Newcastle own a range of international beer brands, including Kronenbourg, Newcastle and Brown ale and have exclusive rights to the Fosters brand in Europe.

So overall the deal must make complete sense!