Suntory Holdings is consolidating its operations at its Laphroaig and Bowmore scotch whisky distilleries in Scotland as part of a ¡°future-focused¡± strategy, the company has said, as overall sales of the liquor to the U.S. declined following tariffs imposed by the administration of President Donald Trump.

The Japanese beverage giant declined to comment about whether tariffs were a consideration when making the decision. About 57% of Suntory¡¯s total revenue has come from overseas sales so far in fiscal 2025, which ends in March.

Most of the value of the scotch market comes from exports ¡ª 90% of the liquor is sent outside of the U.K., according to the Scotch Whisky Association.

The U.S. is one of the largest markets for scotch, but overall export by volume has decreased 15% following the introduction of a 10% tariff in April 2025, the association said.

Suntory described its merging of the teams at the two distilleries as being driven by consumer demand. As part of the reconfiguration, voluntary redundancies have been offered. There are no compulsory redundancies planned, according to the company.

Alistair Longwell, head of distilling and environment at Suntory Global Spirits, said the company was making ¡°operational adjustments ... to align production with long?term demand.¡±

¡°Distillation continues at both distilleries, and we remain fully committed to Islay, our people, and the communities that have supported these whiskies for generations,¡± Longwell said in a statement.

Both distilleries are on Islay island in Scotland, a picturesque destination for scotch tasting tours. The visitor centers on both premises will remain open, and Suntory is planning further capital investment in the distilleries but has not publicly disclosed the details.

In 1994, Suntory acquired Bowmore, established in 1779, followed by Laphroaig in 2014 under its acquisition of Beam as part of a $16 billion deal to acquire the U.S. makers of Jim Beam whiskey in a broader portfolio. Under the deal, the company also acquired Maker¡¯s Mark bourbon ¡ª a well-known premium spirit brewed in Kentucky.

Competitor Asahi Group Holdings is also on a global push, snapping up beer brands. A number of mergers and acquisition deals to acquire local household name beers in Australia in 2020 increased the firm¡¯s share in the Australian market to 48.5%. In 2024, it also acquired American brewery Octopi Brewing.