Distillers Company
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The Distillers Company Limited was a leading Scottish drinks and
pharmaceutical A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field an ...
company and, at one time, a constituent of the FTSE 100 Index. It was taken over by Guinness & Co. (now part of Diageo) in 1986 in a transaction which was later found to be involved in fraudulent activity, becoming known as the Guinness share-trading fraud.


History

The company's origins lie in a trade association known as the Scotch Distillers' Association formed by Menzies, Barnard & Craig, John Bald & Co., John Haig & Co., MacNab Bros, Robert Mowbray and Macfarlane & Co. in 1865. It was incorporated in 1877 and combined with John Walker & Son and Buchanan- Dewar in 1925. It was acquired by Guinness in 1986 and was renamed as United Distillers in 1987. In 1998 United Distillers was merged with
International Distillers & Vintners International Distillers & Vintners was a brewing and wine and spirits distribution company, formed from the 1962 merger of W&A Gilbey and United Wine Traders. Founders W&A Gilbey was founded in 1857 as a gin distillery by Walter Gilbey, Sir Walte ...
to create United Distillers & Vintners, forming the spirits division of Diageo plc. The company still exists today as Diageo Scotland Ltd.Competition Commission Report 1983


Pharmaceuticals

From 1942, ''Distillers Biochemicals'' (DCBL) operated an ''Agency Factory'' of the British Ministry of Supply manufacturing penicillin in Speke. The plant was one of the first two factories in Europe to produce penicillin. Following
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
, DCBL purchased the facility for approximately four million dollars. Distillers was also responsible for the manufacture of the drug
Thalidomide Thalidomide, sold under the brand names Contergan and Thalomid among others, is a medication used to treat a number of cancers (including multiple myeloma), graft-versus-host disease, and a number of skin conditions including complications o ...
in the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
. Thalidomide had been developed by Grunenthal with whom, in July 1957, DCBL signed a sixteen-year contract to market the drug. DCBL ordered 6,000 tablets for clinical trial and 500 grammes of pure substance for ''animal experiments'' and ''formulation''. Thalidomide was marketed in the United Kingdom under the name Distaval, beginning on 14 April 1958. Advertisements emphasised the drug's complete safety, using phrases such as ''non-toxic'' and ''no known toxicity.'' Later, Thalidomide was marketed under the names Asmaval, Tensival, Valgis, and Valgraine and found to cause nerve damage and malformations in births. The Speke site, also known as ''Speke Operations'', was eventually sold to Eli Lilly and Company in 1963.


Chemicals and plastics

Since 1915, during the
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
, Distillers supplied industrial alcohol for making explosives. In 1922, it started to manufacture Discol-branded motor fuel made from alcohol. In 1928, it formed together with
Turner and Newall Turner & Newall was a manufacturing business based in Manchester, United Kingdom. At its peak, it was a constituent of the FT 30 index of leading companies on the London Stock Exchange. As part of their business, the company was one of the first ...
the Carbon Dioxide Co Ltd to for sale of gas, a byproduct of their operations. In 1930, Distillers formed the British Industrial Solvents for production of acids and other solvents from industrial alcohol. In 1933, it formed Gyproc Products which was sold to
British Plaster Board BPB Ltd (formerly BPB plc) (British Plaster Board) was a British building materials business. It once was a constituent of the FTSE 100 Index. In 2005, the company was purchased by Saint-Gobain of France. The company subsidiary British Gypsum, ...
in 1944. In 1937, Distillers acquired British Resin Products. Bamberg (2000), pp. 361–362 In 1939, it acquired a controlling stake in
Commercial Solvents Commercial Solvents Corporation (CSC) was an American chemical and biotechnology company created in 1919. History The Commercial Solvents Corporation was established at the end of World War I; earning distinction as the pioneer producer of acetone ...
and 50% interest in BX Plastics, which full control was acquired in 1961. It followed by getting 48% shareholding in F. A. Hughes and Co. in 1941 and taking the full control in 1947. In 1947, F. A. Hughes and Co. was merged into British Resin. In 1947, British Petroleum Chemicals was incorporated as a joint venture of AIOC and Distillers Company. In 1956, the company was renamed British Hydrocarbon Chemicals. Bamberg (2000), pp. 350–352 In 1945, Distillers formed a joint venture British Geon with B. F. Goodrich to produce polyvinyl chloride and in 1954 it started a partnership named Distrene with Dow Chemicals to produce polystyrene. In 1955, it took full control of Magnesium Elektron. In 1967, BP acquired chemical and plastic assets of The Distillers Company which were merged with British Hydrocarbon Chemicals to form BP Chemicals. Bamberg (2000), pp. 385–389


Directors of note

* Leonard Alsager Elgood FRSE 1943 to 1960.


See also

*
Pharmaceutical industry in the United Kingdom The pharmaceutical industry in the United Kingdom directly employs around 73,000 people and in 2007 contributed £8.4 billion to the UK's GDP and invested a total of £3.9 billion in research and development. In 2007 exports of pharmaceutical prod ...


References


Bibliography

*


External links


History page on Diageo website
*
Article about The Distillers Company at www.gracesguide.co.uk

Article about The Distillers Company at www.scotchwhisky.com
{{DEFAULTSORT:Distillers Company British companies established in 1877 Scottish malt whisky Companies formerly listed on the London Stock Exchange Food and drink companies disestablished in 1986 Scandals in Scotland 1877 establishments in Scotland Manufacturing companies based in Edinburgh Pharmaceutical companies of Scotland Pharmaceutical companies of the United Kingdom Drink companies of Scotland History of Edinburgh Food and drink companies established in 1877 Chemical companies of Scotland 1986 mergers and acquisitions