The company criticised the “unfairness” of UK duty policy and has called on the UK government to replace “lip service” with “concrete supportive actions” to help the industry navigate turbulent global markets.

Loch Lomond, whose brands include Glen Scotia and its eponymous single malt, attributed the decline to lower shipment volumes as global importers remain cautious post-pandemic. The company also noted a “weaker” business mix, as the cost-of-living crisis has led consumers to trade down from “ultra-premium” products, impacting profitability, The Herald reports.

These difficulties have been compounded by high UK spirits duty, which the Scotch Whisky Association (SWA) notes has risen by 14% in two years, contributing to a reported 1,000 job cuts since the last Budget. The most recent duty increase was announced last autumn by Chancellor Rachel Reeves, despite a pre-election pledge from the Prime Minister to back “Scotch producers to the hilt”.

Managing director Colin Matthews described the current climate as “extremely challenging” but placed the results in a wider context, stating: “The reality is that our turnover has doubled in the last five years. This represents sustained annual growth of 14% over that period.”

He urged the government to recognise Scotch as a “jewel in the UK’s crown” that should be supported rather than “punished and taxed unfairly for its success”, ahead of the upcoming Budget on 26 November.

Despite the headwinds, the company is continuing to invest. It recently acquired the New York Distilling Company, makers of Jaywalk Rye Whiskey, and is preparing for the “imminent” opening of its new Luss Distillery, which will be the home of its Ben Lomond Gin brand.