Steady sales at whisky firm
Inver House ‘in strong position’ for global growth
Martin Leonard: committed to investment
Inver House Distillers, the Scotch whisky subsidiary of global drinks business International Beverage Holdings, has reported steady sales for the year to September 2017.
The Airdrie-based company’s portfolio includes single malt Scotch whisky brands Old Pulteney, Speyburn, anCnoc and Balblair, as well as the blended Scotch Hankey Bannister.
A long term investment plan behind the company’s super premium Scottish gin Caorunn delivered a particularly strong performance in the results, with sales value growing by 34% in 2017 (47% growth in the UK market and 46% in the travel retail channel).
The company also continues to invest in its distilleries, most notably a £3 million green initiative at Balmenach Distillery, the home of Caorunn Gin, to install a new anaerobic digestion system to significantly reduce the site’s carbon footprint.
Martin Leonard, managing director, said: “The business is in a strong position and delivering on our long term strategy to build on our highly successful brands in global markets.
“We are also committed to investment programmes at our distilleries, to ensure they are in good shape to deliver increased demand for stock in the future, where possible using the latest green technology and processes to protect the environment surrounding each site.
“In terms of our brands, Caorunn is a very good example of our strategy in action. A 47% growth figure in the UK market demonstrates how our production, sales and marketing skills and long term approach can build a brand to become one of the UK’s best sellers in what is an extremely competitive sector.
“We are investing heavily in supporting our brand portfolio to compete in the global market, with a recent relaunch for Speyburn in the UK and US, and further brand projects planned in the near future.”
- Turnover at £62.7 million, was at a similar level to the prior period.
- Gross profit margins were slightly down on the prior period, with core brands making up a larger % of sales.
- Other operating expenses increased as more monies were invested behind promoting the brands.
- Caorunn Gin sales continue to grow at double digit level.
- Continued investment in stocks for future brand growth – up 3% to £118m.