Strong Performance by Edrington
Scottish distiller The Edrington Group has increased profit before tax by 3% to £174.0 million and turnover by 3% to £607.7 million for the year ended 31 March 2014 as the company’s core brands – including The Macallan, Brugal, The Famous Grouse, Cutty Sark and Highland Park – continued to perform strongly.
Edrington increased its presence in both established and emerging markets and made significant investment in its brands and its route to market during the year.
Ian Curle, chief executive of Edrington.
Edrington’s route to market was transformed during the year with the establishment of new sales, marketing and distribution companies in South East Asia (Singapore) and the Middle East (Dubai) and in April 2014 Edrington Americas was launched, meaning the company now owns the route to market for its leading brands in the world’s largest premium spirits market.
The Macallan brand grew across a broad range of territories where it is established as the pre-eminent premium malt. Highland Park had an excellent year, assisted by its award-winning Warriors range.
The Famous Grouse performed strongly in the UK and Sweden and showed continued progress in emerging markets. A focus on innovation led to a successful Ginger Grouse (an alcoholic ginger beer) test market, and subsequent roll-out to the rest of the UK.
Brugal continued to invest in premiumisation and innovation, including new packaging and the launch of Brugal Suspiro (a low calorie premium golden rum) in Spain. Cutty Sark showed a small volume increase in its key southern European markets. The brand’s new premium expression, Prohibition, is generating considerable trade and consumer interest in the USA.
Edrington has prepared Snow Leopard vodka, which was acquired in 2013, for new international markets in Asia and the USA. This premium vodka was created to fund conservation of an endangered species.
In keeping with Edrington’s approach of investing for the long term, during the year plans were announced for an iconic new Speyside distillery and visitor centre for The Macallan. Edrington is investing over £100 million in the project – work is scheduled to begin in autumn 2014 and is due for completion in spring 2017.
Ian Curle, chief executive of Edrington, comments: “I am pleased to report that Edrington has delivered another strong year of growth. We have again increased our annual turnover, profit and dividend – over the past five years our turnover and profit have increased by 45% and 84% respectively, demonstrating the success of our international expansion.”
He continues: “The market for premium spirits worldwide continues to grow with more and more consumers gaining an appreciation for our brands. Last year we made significant investments in our route to market and now own the distribution capability in 11 countries which, together with our joint ventures, collectively represent 80% of Edrington’s total sales.”
He remains optimistic about the company’s long term prospects despite continuing economic headwinds in some countries and political unrest in others.
Edrington employs around 2,300 people worldwide, with over 60% employed overseas. Edrington is owned by a charitable trust, The Robertson Trust, which donated over £15 million to a variety of charitable causes last year.
