Sales of single malts are on the up and the industry is witnessing a turnaround Ten years ago remote island distilleries in Scotland were in trouble. Today, they are back in favour. Ardbeg, bought by Glenmorangie in 1997, is back in full production. Bunnahabhain, bought by Burn Stewart, is operating again. And Bruichladdich is rebuilding itself as an independent producer. Export of malt whisky has now topped 4m cases whereas a decade ago it was down to 810.000. But the industry is facing new challenges Younger Scots are turning to white spirits, in Spain the market appears to have peaked, in France it is down 10% and in Japan sales are down 35%. Analysts predict growth will slow to less than 2% unless a new way of growing demand can be found. In response, whisky makers are looking to malt. Sales of malt whisky last year were up 13.5% compared to 4% for Scotch as a whole. The Business 11/07/2004 page 10 (Fortune)