Drinks firm strategy paying off
Edrington rewarded for higher investment
Whisky distiller Edrington said a sharp increase in investment in its brand portfolio has been rewarded with a 32% rise in profits.
The company raised investment in its brands, including Famous Grouse, The Macallan and Cutty Sark, by 18% over the previous year to £110.7 million.
Profit shot up from £69.2m to £91m for the year to the end of March.
Core revenue (total revenue excluding the impact of currency and trade sales) came in 6% higher at of £668.1m, up 6% on the previous 12 months.
The Macallan delivered another strong year of sales volume, revenue and profit growth. The brand’s new distillery and brand home will be completed this year.
Highland Park achieved contribution growth in line with Edrington’s overall performance. The brand’s packaging has been revamped for 2017-18.
Edrington’s premium portfolio was strengthened by the return of The Glenrothes Single Malt.
Regional power brands had a strong year of growth led by Brugal
The Famous Grouse strengthened its leading position in the UK, delivering its highest ever market share. Cutty Sark performed well in Spain and grew overall profit.
Brugal Rum’s focus on premium resulted in significant volume and profit growth in its two core markets, The Dominican Republic and Spain.
Ian Curle, chief executive, said: “2016-17 was a significant year of growth for Edrington despite a difficult backdrop of economic and political volatility, and a fiercely competitive marketplace.
“Higher levels of investment in brand marketing, increased innovation, and greater focus on consumers have led to an encouraging performance.
“Despite short term uncertainty we are confident about the medium and long term prospects for the business.”