The turmoil in the whisky world has now reached the maltings. Employees at a major Scottish malthouse are fearing for their jobs. Ongoing challenges have put more than 20 positions at risk, according to the
Scottish Sun.
The issue centers on Pauls Malt’s Glenesk Malthouse, near Montrose in
Scotland. The plant plays a key role in the whisky and beer industries, producing large volumes of peated malt for both. But with the industry in flux, the malthouse is now under pressure.
Malthouse in trouble
Industry reports indicate that Boortmalt, the international malting company that owns Pauls Malt, has launched a formal consultation process. During such a process, the company explores potential restructurings and engages with employees and unions about the future of jobs. This could result in redundancies.
As a result, the jobs of more than 20 staff members are suddenly on the line. A Boortmalt spokesperson said it hasn’t come to that yet, the discussions are still ongoing. For that reason, the company is not providing further details at this time about the exact number of roles that could be cut.
A key production site for the whisky sector
The Glenesk Malthouse is regarded as one of Scotland’s most important facilities for producing peated malt. The site also boasts an impressive piece of kit: the largest malt kiln in the world. This kiln has a diameter of 41 meters and can produce around 90,000 tonnes of malt per year.
Malt from the plant is used by various breweries and distilleries, making it a vital link in the supply chain for both whisky and craft beer.
In addition to the Montrose site, Pauls Malt operates a plant in Buckie, Moray, and two production locations in England.
Whisky industry under pressure
The potential redundancies come at a time when the whisky sector is facing multiple headwinds. Global sales growth is slowing, while production and energy costs are rising. That combination is putting pressure on companies across the supply chain.
Notably, these plans follow an earlier investment at the plant. In 2024, the owners announced a major expansion of production capacity to meet demand for malt.
More turbulence in the drinks industry
The situation at Pauls Malt is not isolated. In recent months, several companies in the drinks sector have run into financial difficulties, with various distilleries and breweries entering administration or reorganizing.
Some businesses were later rescued by new investors, while others were forced to cut staff. For workers in the whisky and beer industries, that has created mounting uncertainty about the future of their jobs.
The outcome of the current consultation process at the Glenesk Malthouse will determine how many jobs are ultimately lost and what impact this will have on the local economy around Montrose.