Glen Albyn Distillery Logbook 6th September 1924

 

We find ourselves in 1924, as the latest entry in the Glen Albyn logbook reveals a surge in demand for its whisky, prompting necessary measures to accommodate this growth. You might assume it simply involves increasing production, sourcing raw materials, acquiring casks, and expanding storage facilities. Yet, as would be the case today, the situation is far more intricate. There are insurers, regulations, and the Crown to appease in the tightly regulated realm of spirit distillation.

Even with Prohibition in effect, Glen Albyn appears to be thriving. This success may be partly attributed to the fresh investment and guidance from its owners, Mackinlay & Birnie, who took charge in 1920, after a period of closure. Additionally, the lingering shadows of the First World War are fading, along with its repercussions, and Glen Albyn's prior function as a base for the US Navy, the future is likely to be bright.

Nevertheless, we know that many distilleries, blenders, and whisky-related enterprises across Scotland did not reopen or resume production. For those that did, not every journey was smooth, and many struggled to survive the tumultuous 1920s, especially with the Great Depression looming at the decade's end. These were challenging times, yet there seems to be a strong demand for Glen Albyn and its whisky.

As always, I'll transcribe the entry before discussing what it tells us in greater detail:

'Glen Albyn Distillery

Inverness

6th September 1924

Honourable Sirs

The attached application by Messrs Mackinlays Birnie Ltd is permanent for an additional general bond of £20,000 required for the removal of spirits from their Glen Albyn Distillery, Inverness to other warehouses.

Their present general bond for the removal of spirits is for £10,000 dated 28th February 1920, but this penalty is no longer sufficient for their increased business.

The principles are Messrs Mackinlays and Birnie Ltd, Glen Albyn Distillery, Inverness.

The proposed Sureties are Robert Lumsden Mackintosh of Inches House Inverness, ??? and John Mackenzie of 42 Academy Street, Inverness, grain merchant both in the County of Inverness. 

I am satisfied that the additional general bond is necessary and that the Principals and Sureties are in sufficient circumstances to meet the penalty named. 

I am, your obedient servant, G.W. Peterkin.'

Inshes House stands as a notable structure in Inverness, with origins tracing back to before 1767, and it holds a grade listing. You can view its protected status along with some photographs on the Highland Government website. Robert passed away in 1929 at the age of 68 and rests in Tomnahurich cemetery in Inverness, a final resting place for many of Glen Mhor's, and therefore Glen Albyn's, most distinguished names.

John Mackenzie appears to be a prominent grain merchant in the area, likely familiar to distillers such as John Birnie. His storage facilities near Inverness harbour indicate that his grain was imported both from the UK and abroad. The centrally located building at 42 Academy Street (pictured above in the 1920s) remains intact today, featuring a retail space on the ground floor and smaller office suites on the upper level, as highlighted in a recent property listing.

This logbook entry refers to one of the fundamental principles that supports the entire bonded warehouse system in the UK. Essentially, it allows for alcohol to be stored in a secure facility while any customs and excise duties owed to the Crown are put on hold. This is made possible by providing financial security through a bond. In this context, we observe that the rise in sales has compelled Glen Albyn to double its previous allowance to meet the needs of both the business and its customers.

As with these entries, the details are crucial; for example, £10,000 would translate to £571,176 in today's currency, which is still a significant amount. If that allowance were doubled just four years later, the equivalent would rise to circa £1.55 million.

In 1920, the tax on a gallon of spirits was three pounds twelve shillings and sixpence, or £3.63 in modern terms. This would roughly correspond to 2,755 gallons of spirits. Excluding whisky butts and other sizes, considering a whisky barrel holds 53 gallons, this would amount to 52 barrels of duty. However, it's not that straightforward, as the bond serves merely as a guarantee and isn't a perfect fit, moreover a percentage that we don't have the inner workings of. Yet it offers some insight into the extent of financial responsibility that would exist across the warehouses of Glen Albyn and the element of trust between both sides. And the constant presence of an Exciseman to monitor and record. 

What I cannot clarify at this moment, but will address with more time and research, is how developed the warehousing was on the site by 1920, and whether the warehouse capacity was expanded by 1924 or shortly thereafter, or if this is just an increase in production based on existing facilities. So far, the logbook has not indicated any new warehousing from 1923 onwards nor any increased output. 

The date of February 28, 1920, holds significance, as it marks the known year, when Mackinlay & Birnie assumed control of Glen Albyn - could this be a more precise date? After all, I find it hard to believe that the previous owners would initiate a new bond while in the midst of departing. Furthermore, their sale of the distillery would logically have led to the necessity for a new bond and the naming of those new custodians.

Thus, this date might signify when Glen Albyn was officially handed over, with Mackinlay & Birnie stepping in as the new proprietors, taking on the responsibility for any bonded warehouses present on the premises?

Additionally, we gain insight into the ambitious scale of operations at the distillery, as they managed to double their bond within just four years. It could be that the previous amount of £10,000 was a continuation of the existing agreement, enabling Mackinlay & Birnie to conduct their due diligence and evaluate their recent acquisition, even though John Birnie was already quite familiar with the distillery, he would have wanted to assess its current status.

My initial impression is that this represents a significant increase in production following the lean years of war and the prevailing economic conditions. A clear indicator of this can be observed by simply looking across the street for signs of activity at Glen Mhor, where a new distillery office was under construction. This would free up additional internal space within the production facilities and enable the distillery to boost its output along with other changes.

It seems quite logical that, even though Glen Mhor is their first and arguably most cherished distillery, Glen Albyn would also receive some investment, albeit on a smaller scale. While the buildings there were mostly established, it is clear that there was some unused capacity that could be tapped into. According to the distillery plans that I have yet to publish, the 1920s only show a Barley Kiln in 1927 as the only submission for planning approval. However, this does not imply that changes were not on the horizon, and if there are any developments, I will uncover them in due course.