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Compass Whiskey

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Compass Box Whisky Company

Issue: The scotch whisky industry is in shortage of component whiskies, and many producers need to take actions in sourcing & production.

Compass Box: is one of these companies. It was founded by John Glacer in London in 2000. By 2007, the company was worth 7 million dollars owing to its innovative products. They had to come up with scenarios to come over the sourcing problems (see the scenarios)
*30% annual growth. 2.5 million euro in 2006
*Our guy: John Glacer. Founder of the company

Whiskey could be either malt or grain. Market was segmented accordingly. Whiskies differentiate based on: | a) size and shapes of stills | b) specific grain used | c) aging process (type of casks) | | Compass Box Whisky production process | | | Taste samples from 30-40 different casks of aged whisky | Send the actual casks to a bottling hall facility in Leven - north of Edinburgh | Dilluting the whiskies in casks and return to original casks to age an additional 6 months or so. | Bottling at Broxburn - just west of Edinburgh | Sell the casks to local coopers at minimum salvage value | | |
Whiskey Market Segments: 1- Blended Whisky: 80% of the market. Both malt and grain 2- Single malt whiskey: 19%. 100% malt from a single distillery. Premium. 3- Vatted malts: <1%. 100% malt from more than one distillery. Premium.

Compass Box mostly in vatted malts, although it has blended whiskies in its portfolio.

Possible Scenarios: 1- Continue purchasing mature stock: the way to do this is either: a. Find an industry partner (con: 1- CB would need to give them guaranteed access to its component whisky stocks 2- The prices of component whiskies are on rise, there might be unforeseen big rises even if we partner up) b. Modify the portfolio based on the accessible whisky stocks (con: no

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