INVESTMENT in core whisky brands has started to pay off for Famous Grouse owner Edrington, which has reported a near 5 per cent rise in annual sales to £291.5 million.
Underlying profit before tax rose almost 10 per cent to £75.6m in the 12 months to the end of March, boosted by a strong performance in brands such as Highland Park, which grew revenues by 20 per cent.
The privately-owned firm is to invest £20m at
its Macallan distillery in Speyside in a bid to increase capacity by 30 per cent, upgrading warehouse facilities.
But the distiller warned that the economic climate was "less optimistic" and said it was facing "significant" cost increases in cereals, energy, transport and packaging materials. However, it added that it still expected growth in the current financial year.
Earlier this year, Edrington snapped up a 61 per cent majority stake in a family-run Dominican rum maker, the Brugal Company.
The £200m deal saw Edrington take control of the brand, which is the fastest-growing golden rum in international markets.
A spokesman for the firm told The Scotsman yesterday that Brugal had been performing "very well" and said the firm was looking to launch in a number of new markets including countries in Europe and the Americas as well as the UK.
He added: "We are delighted with Brugal. We are moving into a number of new markets. As a result of us doing the deal, we have now set up our first-ever international sales office in Madrid."
Chief executive Ian Curle added: "I am pleased to report that the group's strategy of investing in authentic premium spirits brands continues to bear fruit in what is a dynamic and growing international market. During the past year, we have grown volume, and more importantly the value, of our key brands, in an industry where there is superior growth opportunities for authentic premium spirits.
"In particular, premium Scotch whisky and golden rum are enjoying success across a range of existing and developing markets – such market conditions augur well for future prospects."
Over the period, sales of its best-selling brand, the Famous Grouse, also increased, while Cutty Sark is making steady progress in southern Europe.
Edrington noted that its Maxxium Worldwide distribution partner was set to lose Remy Cointreau as well as V&S, but gave assurances that it had "no current plans" to leave the partnership.
A spokesman said: "We are currently in discussion with all of our Maxxium partners to see how we can continue to grow."
Edrington, which can trace its roots back to the 1850s, is controlled by a charitable body, the Robertson Trust. It employs around 800 people at five distilleries and six other sites across Scotland.
All change as Glenmorangie ditches blendsWHISKY maker Glenmorangie has announced plans to move its headquarters and ditch its blended Scotch brands as part of a £45 million investment programme.
But the company added it is set to axe a number of jobs as a result of the proposals and has launched a 90-day consultation with workers.
The two-year programme – which will also see the Broxburn-based firm upgrade two distilleries – has been launched to allow the company to focus on its two single malt Scotch whisky brands, Glenmorangie and Ardbeg, in response to growing market demand for top-end Scotch.
Glenmorangie is set to sell off its existing Broxburn HQ to rival Diageo, while the Glen Moray Distillery at Elgin – whose whisky is predominantly used in blended Scotch – will be sold as a going concern.
A spokeswoman for the firm said the number of jobs likely to be affected was as yet unknown, although it is hoped that the changes will be through retirement and voluntary redundancy.
Chief executive Paul Neep said: "Our strategy is to focus on our premium single-malt whisky brands to take full advantage of the rapid growth of single malts across the world."
He added: "We believe that these proposals will deliver long-term additional growth."
The business plans include a multi-million pound investment in the firm's flagship distillery in Ross-shire, while further development is also planned at the Ardbeg distillery on Islay.
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