Makers of Isle of Harris Gin reducing production and staff

Isle of Harris Distillery says it will reduce its production and workforce as part of a restructuring programme.

The maker of Isle of Harris Gin, and also the first single malt whiskies on Harris in almost 200 years, employs 50 people.

The distillery opened in 2015 with just 10 employees.

Managing director Simon Erlanger said the spirits industry was facing “challenging headwinds” and having to make difficult decisions.

Scotland’s whisky industry warned earlier this month tariffs imposed by the US – its most important overseas market – would be a “huge blow”.

Mr Erlanger said restructuring was needed to safeguard the future of the business.

He said: “Following a number of cost-cutting measures, voluntary redundancy is being offered to staff in the first instance, with compulsory to follow thereafter if we do not fulfil our cost reduction target.

“It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business.”

Mr Erlanger said the distillery represented more than £20m investment in the island’s economy.

He added: “We remain true to our founding purpose as a sustainable, multi-generational firm built to support the community for many years to come.

“The regrettable measures now being taken are necessary to help fulfil that long term vision.”

In 2022, the distillery secured £10m in funding from HSBC to pay for a new export drive to distribute its gin to more than 20 markets around the world.

They includes the US, Canada, France and Germany.