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The Whyte & Mackay portfolio includes the flagship brand, Whyte & Mackay Scotch whisky, The Dalmore, Vladivar Vodka and Isle of Jura whisky Photos by Hui Min Neo |
UK. Whyte & Mackay confirmed it has received a number of bids, including one from India’s United Breweries, which could lead to its £600 million sale, or a part sale.
Chairman and Chief Executive Vivian Immerman denied reports that the Scotch whisky had already been sold to United Breweries (UB), but revealed that an approach from the Indian drinks giant had been made.
Immerman said: “We are currently evaluating more than one unsolicited bid which may lead to the sale of part of the business, the whole of the business, or a strategic alliance.”
Pointing out that his business – which has Whyte & Mackay Scotch whisky, Isle of Jura malt whisky and Vladivar vodka as its key brands – had completely turned around in the last few years, Immerman added: “The sum of the parts for the whole business would put a value on the group at around £600 million. We are in talks with UB in addition to others.”
Owned by drinks tycoon Vijay Mallya, UB heads the Indian spirits market and is reported to be the third-largest spirits marketer in the world, behind Pernod Ricard and Diageo, with sales of approximately 60 million cases. The group also owns the Kingfisher beer brand.
Immerman indicated that the approach from Mallya is a highly significant one: “It’s fair to say we are taking his interest in our business very seriously. He makes good quality products in his business, and has some of the biggest volumes in the world.”
Whyte & Mackay, which holds about 9% of the global Scotch whisky market, is seen as an attractive proposition because of its large stock of old single malt. Immerman has estimated that this accounts for at least £350 million of the company’s value.
Demand for aged whisky among Indian consumers has grown with the country’s spiraling economy and Whyte & Mackay had planned to invest £110 million over the next five years in brand restructuring and relaunching.
Immerman said: “The liquor industry has gone through quite a growth spurt, especially in Asia, and we are reviewing all our strategic options.”
At present, Scottish whisky only has a 1% share of the market in India, due to tariffs imposed by national and state governments.
It has also been claimed that Mallya wishes to acquire a UK-based drinks company to help distribution of UB’s products in Europe.
MORE WHITE & MACKAY STORIES
James Prescott leaves World Duty Free to head Whyte & Mackay’s travel retail business – 24/08/06
Whyte & Mackay stamps new identity on Scots roots – 28/11/05
