Suntory Merges Laphroaig and Bowmore Teams Amid Scotch Slowdown

(Photo: Laphroaig)

On Wednesday, Suntory Global Spirits announced that it will be merging the operations teams at two of its most iconic Scotch whisky distilleries, Laphroaig and Bowmore. The change is said to align with long-term demand, sustainability and traditional seasonal operating models used across the industry, per the company.

Suntory does not plan to close either facility, nor does it intend to pause distilling or barreling. Instead, employees at the two distilleries — located a dozen miles apart on the island of Islay — will be combined into one team. According to third-party estimates, between 70 and 200 employees work at the Bowmore and Laphroaig facilities combined.

“Bowmore and Laphroaig are iconic Scotch whisky brands with exceptional heritage and craft, and they are long-term priorities for Suntory Global Spirits,” Alistair Longwell, head of distilling and environment at Suntory Global, said in a public statement. “As part of our commitment to producing whisky of the highest quality in a sustainable and efficient way, we are making operational adjustments on Islay to align production with long‑term demand.”

Though Suntory says that there are no compulsory redundancies (corporate speak for layoffs), the company has opened a voluntary redundancy program for staff who wish to opt out of the restructuring.

“It is entirely voluntary, confidential, and supported by HR. It’s simply there as an option for colleagues who feel that the new single‑team structure may not suit their individual needs,” the company stated.

The announcement comes little over a week after Suntory Global Spirits reported a 1.4% drop in annual sales across its alcohol businesses.

The company noted strong growth in its Japanese whisky, gin  and ready-to-drink cocktail portfolios, adding that American whiskey brands like Jim Beam and Maker’s Mark “outperformed” their competitors. The company did not go into specifics about its Scotch portfolio, though it did mention continued investments and a new global partnership with actor Willem Dafoe.

Alcohol makers across Scotland have struggled against macroeconomic headwinds over the past few years. According to restructuring firm BTG Global Advisory, 19% of the country’s distilleries are dealing with “significant or critical” financial issues, while overall “distress” reached 40.8% in the final three months of 2025.

“Distilleries in Scotland, where the majority of the UK’s whisky production is based, are facing a perfect storm of lowering demand, rising production costs and increased tariffs in key markets, factors that have already cost numerous brands their businesses over recent months,” Thomas McKay, managing partner of BTG in Scotland, said, according to The Spirits Business.

Last January, Brown-Forman announced a shared production model for BenRiach and Glenglassaugh Scotch that will include “periods of production alongside silent seasons” for the latter brand. By September, Diageo had paused production at its Teaninich distillery in Alness, Scotland, through the end of the year.