Suntory Global Spirits has announced that the operations teams at its two Islay distilleries, Bowmore and Laphroaig, will be merged into a single unit. At the same time, the company has launched a voluntary redundancy programme for operational staff who feel the new set-up does not suit their needs. Suntory also stresses that no closures are planned: distilling will continue at both sites and its commitment to Islay remains “strategic”.
It’s the kind of news that makes headlines, because it involves two peat icons. But, read in the current context of Scotch whisky, it shouldn’t come as too much of a surprise: rather than a “red alert”, it looks like an industrial adjustment at a time when several groups are trying to realign production, maturing stocks and real-world demand.
What has been announced
The key change is the move to a “single operations team” spanning Bowmore and Laphroaig. According to multiple trade outlets, the stated aim is to run production more sustainably and efficiently, in line with long-term demand, and to balance distillation with the inventory currently maturing in warehouses.
On the people side, the programme is described as voluntary rather than a compulsory redundancy process. That distinction matters, because it separates two very different outcomes: a structural reorganisation versus a forced reduction driven by an emergency.
Why it wasn’t expected, but isn’t a bolt from the blue
From the outside, the dominant Islay narrative of recent years has been: investment, new openings, rising tourism, special releases. And that’s true. But Scotch production has a long inertia: distillation today is aimed at sales years down the line, often many years. When demand slows or the mix shifts (less volume, more premium), planning decisions eventually surface.
In that sense, Suntory’s announcement reads like an attempt to “return to cruising speed”: protect brand continuity, avoid excess stock, and make operations more flexible without undermining the existence of either production site.
There’s also a broader backdrop: in February 2026 the Scotch Whisky Association published its 2025 export figures, pointing to a modest dip in value and a sharper fall in volume (with notable impacts in some key markets). It’s not “the” cause of any single corporate decision, but it is one of the signals of a less euphoric phase than the post-pandemic surge.
Islay keeps moving: what’s genuinely “new” on the island
The interesting (almost curious, at this point) thing for anyone following Islay is the coexistence of two dynamics: rationalisation on one side, and new projects plus high-profile reopenings on the other.
Port Ellen is back
Port Ellen reopened on 19 March 2024 and is once again visitable with tours and experiences (with availability announced from the months following the reopening). It’s a return that matters more symbolically and in tourism terms than in immediate volume, but it reinforces the idea of Islay as a destination as well as an origin. Personally, the approach doesn’t really win me over, as discussed here.
Portintruan: works underway, aiming to distil in 2026
Elixir Distillers says Portintruan’s build is “well advanced” and that the expectation is to start distilling in 2026. After construction paused in 2024 following the collapse of contractor ISG, the project restarted in 2025 with Morris & Spottiswood stepping in to carry the build forward. As things stand, the timeline communicated by the project still points to 2026 for the start of distillation.
Laggan Bay: nearly there
Laggan Bay is another important piece. Developed on the same new Glenegedale site as Islay Ales, the distillery is now far enough along to appear in the official Fèis Ìle 2026 programme with a dedicated day and open day hours. That signals a concrete step towards operational readiness and visitor-facing activity, even if the specifics of what will actually be presented (tours, tastings, any potential new make) will depend on the festival’s full event details.
Gartbreck (Chivas Brothers): still an announced project
Chivas Brothers has announced plans for its first Islay distillery at Gartbreck. It’s a project that completes the group’s “geographic portfolio” and, in terms of positioning, leans into sustainability and local impact.
Rationalisation and new openings: two speeds of the same cycle
The apparent contradiction between rationalisation and new openings is only partly real. The two trends coexist because they operate on different timelines: staffing and capacity management are short-term levers, while a new distillery is a multi-year bet that often comes to fruition after the market has already shifted. Many projects that were launched or accelerated during the boom years, with low rates, strong demand and an unusual push during and after Covid, are now coming online in a more cautious phase. That timing mismatch is classic whisky: decisions are made when the wave is rising, openings happen when the wave has already flattened.
There’s also a second factor, less romantic and more industrial: beyond a certain point, it’s no longer easy to “turn back”. When capital is already tied up in equipment, civil works, contracts and permits, stopping can be more expensive than finishing. In those cases, opening is not necessarily proof of optimism, but can become a form of risk containment: complete the build, ramp up cautiously, build stock slowly and lean on tourism and experience to ride out the phase, while larger groups optimise what already exists to avoid being overexposed. Read this way, Islay isn’t telling a story of “all growth” or “all crisis”, but a cycle transition where long-horizon investments and short-term adjustments overlap, and not always with predictable outcomes.
