Swedish whisky brand Mackmyra Svensk Whisky has filed for bankruptcy, marking a significant chapter in the company’s 25-year journey. The filing was made on August 19th at the Gävle District Court, just as the company was celebrating a quarter-century in the whisky industry. Ownership and management of the brand have now been transferred to a bankruptcy trustee as Mackmyra’s management concedes it is no longer possible to sustain operations.
Image credit Mackmyra (Facebook)
A Legacy Begins and Ends
Mackmyra was established in 1999 by a group of eight friends who were passionate about whisky and curious about why Sweden had no whisky distilleries of its own. Their ambition led to the creation of Mackmyra, a brand that grew steadily over the years, becoming a prominent name in the world of Swedish whisky. The distillery, originally located in the village of Mackmyra, moved to a state-of-the-art, gravity-based facility in 2011, enabling it to reach a production capacity of approximately 2.4 million bottles annually. Despite these advancements, financial challenges persisted, culminating in the company’s decision to file for bankruptcy.
The Struggles Leading to Bankruptcy
In recent years, Mackmyra’s management and board of directors faced mounting difficulties in maintaining profitability and managing cash flow. According to Petter Ski, who became chairman of the board just over a year ago, the team had been working tirelessly to find a sustainable path forward. Unfortunately, despite their efforts, the financial strain proved insurmountable. “It is with great sadness that we must state that it is unfortunately not possible to continue the company’s operations,” Ski said in a statement.
Image credit Mackmyra (Facebook)
Mackmyra’s decline was evident earlier in 2024 when the company reported a 13% drop in revenue for the first quarter compared to the previous year, totaling 14.6 million Swedish Krona (approximately £1 million). These financial setbacks, coupled with ongoing cash flow issues, left the company with no choice but to file for bankruptcy.
Hopes for a Future Beyond Bankruptcy
While the bankruptcy marks a grim milestone, Ski expressed hope that the bankruptcy trustee might find a way to preserve Mackmyra’s legacy. “I sincerely hope that the bankruptcy trustee now has the chance to do something constructive with the values in the company and secure the Mackmyra brand and its 25-year history,” he noted. The brand has become synonymous with innovation in the whisky industry, having even partnered with tech giants like Microsoft and Fourkind to create the first AI-generated whisky blend.
Recent Developments and Unfulfilled Potential
Mackmyra’s struggles contrast sharply with its recent initiatives aimed at expanding its market presence. Just days before filing for bankruptcy, the company reentered the UK market through a distribution deal with Summerton Whisky Club. The relaunch, featuring updated versions of its Svensk Ek and Svensk Rök single malts in 700ml bottles, was supposed to mark a fresh chapter for the brand in one of its key international markets. This followed a period of suspended sales in the UK earlier in the year after the termination of its previous distribution agreement.
Image credit Mackmyra (Facebook)
These positive strides appeared to signal a turnaround, with acting CEO Patrick Björsjö stating that the company was on track to achieve profitability. However, the financial realities proved too challenging. “This is a regrettable decision, especially for our staff, our incredibly loyal customers, and ambassadors,” Björsjö said. He also noted the unfortunate timing, as the company was finally moving towards a promising future during its milestone anniversary.
The Road Ahead
With the bankruptcy proceedings now in motion, Mackmyra’s future lies in the hands of the appointed trustee. The outcome will determine whether the brand’s assets and legacy can be preserved or if the chapter closes on one of Sweden’s pioneering whisky distilleries. For now, the once-promising distillery’s story serves as a cautionary tale of the challenges faced by even the most innovative and passionate companies in an increasingly competitive and financially demanding industry.
About Mackmyra
Mackmyra is a pioneering Swedish whisky distillery that has made a name for itself by combining traditional Scottish methods with innovative approaches and local Swedish influences. Founded in 1999 by a group of friends who wanted to create the first Swedish single malt whisky, Mackmyra has grown into one of the most prominent distilleries in Scandinavia, known for its distinctive flavor profiles and commitment to sustainability.
The distillery’s journey began when the founders, during a ski trip, discussed the absence of Swedish whisky on the market. This conversation led to the establishment of Mackmyra, which set out to craft whisky that reflects Sweden’s natural resources and culture. The result is a range of whiskies that often incorporate locally sourced ingredients, including Swedish barley, juniper, and peat.
One of Mackmyra’s key innovations is its use of gravity in the production process. The Gravity Distillery, which opened in 2011, is a vertical facility that harnesses gravity to move the whisky through each stage of production. This environmentally friendly approach reduces energy consumption and aligns with the brand’s focus on sustainability. The distillery is also notable for experimenting with unique cask types, such as Swedish oak, cloudberry wine barrels, and birch sap casks, which contribute to the distinctive flavors of Mackmyra’s whiskies.
Mackmyra’s core range includes a variety of expressions, from the elegant and fruity Mackmyra Brukswhisky to the smoky and robust Mackmyra Svensk Rök. The distillery also produces limited-edition seasonal releases and small-batch experiments, which explore different aging techniques and flavor profiles. These offerings showcase the brand’s creativity and its willingness to push the boundaries of traditional whisky-making.
In addition to its innovative production techniques, Mackmyra is deeply rooted in Swedish tradition. The distillery is surrounded by lush forests and pristine lakes, and this natural environment is reflected in the character of its whiskies. The local water, climate, and landscape all play a role in shaping the final product, giving Mackmyra a distinctly Swedish identity.
Overall, Mackmyra is a trailblazer in the world of whisky, blending tradition with innovation and local influences to create unique and high-quality spirits. As one of the first distilleries to put Sweden on the whisky map, Mackmyra continues to be celebrated for its bold, creative approach and its commitment to sustainability.
