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New: The Black Grouse joins the market-leading Famous Grouse family |
UK. The Edrington Group, producer of spirits brands such as The Famous Grouse and The Macallan Scotch whiskies, has reported turnover up +4.7% to £291.5 million and pre-tax profit up +9.7% to £75.6 million for the 12 months ended 31 March, 2008.
The financial results were buoyed by strong performance from core Scotch whisky brands after increased investment, the company said in a statement.
Among the annual highlights, Edrington acquired a 61% stake in Brugal in February 2008, which it described as the fastest-growing golden rum in international markets.
Meanwhile, sales of The Famous Grouse, the market leader in Scotland, climbed as a new expression, The Black Grouse, was launched.
The group is investing £20 million at The Macallan distillery, increasing capacity by 30%. It also reported that Highland Park is the group’s fastest-growing brand, increasing value by over 20%, while Cutty Sark is making steady progress in southern Europe.
Commenting on the results, The Edrington Group Chief Executive Ian Curle said: “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 auger well for future prospects.”
About The Brugal Company
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Hidden gem: Award-winning Highland Park 12yo Scotch whisky |
Edrington has acquired 61.15% of The Brugal Company, with the original family members, whose involvement with the business dates back 120 years, retaining the balance of shares. “I look forward to working with them to develop Brugal’s position in international markets,” said Curle in his CEO statement.
Brugal is the market leader in its homeland, the Dominican Republic, and is described by Edrington as the fastest-growing golden rum in international markets. The brand has become the group’s fifth key expression.
Brugal has achieved strong market positions in its home island, the Dominican Republic, and its main export territory, Spain.
Edrington commented: “The brand broadens the appeal of our portfolio and provides us with new market opportunities. Since our acquisition of a majority stake in February, we have established an international sales office in Madrid. We are working on the international development of the brand and intend to launch Brugal Rum in a number of new markets in the near future.”
Premium brand update
The Famous Grouse increased sales in 2007/08. Building on its status as Scotland’s favourite whisky, the firm has activated The Famous Grouse’s award-winning icon campaign to develop the brand in international markets where the majority of sales now take place and which hold the greatest potential to increase sales, Edrington said. The introduction of The Black Grouse, initially in Sweden and now rolled out to other markets, continues its drive to premiumise the brand while it seeks to develop new markets.
Cutty Sark continues to prosper in southern Europe, but faces a difficult trading environment in a number of other markets, the group said. Focusing on the heritage of the brand and its premium positioning, a new communications campaign has been launched, initially in Spain.
Together with its partners, Berry Bros & Rudd, Edrington is enjoying “encouraging growth” of The Glenrothes single malt, following the introduction of Select Reserve in a number of key markets.
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Major investment: The Macallan distillery receives a cash injection |
“The Macallan continues its ascent as the leading premium single malt,” Edrington said. The brand grew strongly across a broad range of its traditional markets while expanding further into new dynamic growth markets in Asia and Europe. Edrington plans to invest £20m in the distillery, increasing capacity by +30%.
Highland Park was Edrington’s fastest-growing brand in 2007, increasing value by over +20%. Highland Park 12yo was awarded best whisky in show at the 2008 San Francisco Spirits Awards. “Dynamic growth and critical acclaim, together with a strong innovation and activation programme, underpin the success and future development of Highland Park and we have exciting plans to further develop this hidden gem,” the firm said.
Thanking the Maxxium team for delivering another successful year in 2007/08 in terms of distribution, Curle noted that the company faced a number of challenges in the marketplace, against a positive growth environment for premium spirits.
He commented: “The general economic climate is less optimistic and we are facing significant cost increases in cereals, energy, transport and packaging materials. We are confident that we can meet these challenges through our ongoing investment in our brands, innovation, working in partnership with our suppliers and targeting key markets that offer the greatest scope for expansion.”
MORE STORIES ON THE EDRINGTON GROUP
Highland Park celebrates being fabulous at 40 – 23/05/08
Edrington comes of age with Highland Park expression – 31/10/07
High-flying Edrington takes off with The Black Grouse – 16/10/07
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