Plans by Diageo for a new £50 million malt whisky distillery at Teaninich, in the Scottish Highlands, have been put on hold as the biggest Scotch whisky maker responds to a slowdown in demand for a dram around the world.
The Johnnie Walker and J&B owner has also delayed investments in some of its existing distilleries, including an £18 million expansion of the Mortlach distillery in Speyside and a £30 million project at Clynelish distillery in Sutherland.
The projects were part of a £1 billion investment announced by Diageo in 2012 to cash in on booming worldwide sales of Scotch whisky, catering in particular to the growing middle classes in emerging markets such as China, India and Vietnam.
However, after almost a decade of growth,