Scotch whisky distiller - glass half-full or half-empty?
While voicing his belief back then that Edrington's results for that financial year were 'among the best in the spirits industry', he simultaneously highlighted his expectations as he mulled the outlook that demand would be adversely affected by economic pressures seen in the second half of that period.
It is crucial to consider the drop in profits for the year to March 2025 in the context of both the tougher times for the overall industry recently and the growth achieved by Glasgow-based Edrington in recent years.
And the extent to which Edrington's profits are ahead of pre-pandemic levels, even after the sharp fall recorded for the year to March, surely provides some reason for at least the half-full types to raise their glasses in albeit a perhaps more muted toast than last year.
It has been a big week for both Edrington and William Grant & Sons, with completion of a major transaction first announced last September.
Edrington this week completed the sale of The Famous Grouse and Naked Malt brands to William Grant & Sons, which backed the Glasgow-based distiller in its £601 million acquisition of The Macallan owner Highland Distillers back in 1999. Highland was Edrington's joint venture partner for The Famous Grouse blended Scotch.
It was interesting to see Edrington and William Grant & Sons highlight how pleased they were with The Famous Grouse and Naked Malt deal after this was completed this week – but more of that a bit later.
Edrington on Wednesday reported a 26% fall in pre-tax profits before exceptional items to £274.4m for the year to March 31, as Mr McCroskie flagged a 'hostile trading environment'.
Read more
Core revenue fell by 10% to £912m, with the group highlighting a 'challenging economic environment' and reduced consumer demand in international markets.
The distiller said: 'After a period of industry-leading growth, during which the business has grown significantly, this has been a period in which Edrington experienced the full-year impact of reduced consumer demand.'
And Edrington, which has the charitable Robertson Trust as its principal shareholder, flagged increased production and employment costs in the context of the 28% fall in its profits to £291.4m in the year to March 31 on the 'core contribution' measure. Core contribution is defined by Edrington as profits from its branded sales and distribution after the deduction of overheads on a constant-currency basis.
Mr McCroskie, as he mulled the current outlook, declared: 'We believe top-line growth will be difficult to come by in this environment, although adjustments to overheads and brand investment are expected to align net sales and core contribution more closely next year.'
Amid the undoubted challenges, it is important to recognise there were also significant positives in Edrington's results announcement.
While the distiller observed the 'decline in sales was broadly consistent across international markets', it noted that 'exceptions' included 'a resilient performance by Brugal rum in the Dominican Republic and The Macallan in South Korea and Japan'.
Edrington added: 'The Macallan 12, 15 and 18-year-old expressions continued to grow in China and the company saw high consumer demand for products launched to celebrate The Macallan's 200th anniversary.'
The distiller also declared The Macallan had 'marked a successful 200th anniversary year and recorded its second-highest year ever for sales, reinforcing its position as the world's number one single malt Scotch whisky by value'.
And Edrington observed: 'Core contribution was 38% ahead of pre-pandemic levels.'
We should take a moment, amid the tougher times for the Scotch whisky sector in general of late, to contemplate and indeed celebrate that tremendous progress.
Mr McCroskie reiterated Edrington's focus on 'ultra-premium' spirits as he commented on the distiller's results for the year to March.
He declared: 'Our focus on ultra-premium spirits has driven Edrington's growth in recent years and we have continued to execute our strategy despite the hostile trading environment. This includes further strategic investments in our sherry cask supply chain and in reducing our carbon footprint.'
Read more
And, noting Edrington's completion of its sale of The Famous Grouse and Naked Malt brands on July 1, he added: 'This reflects our choice to focus on the premium end of the market, where we are best placed to compete.'
William Grant & Sons was meanwhile upbeat about what it was getting from the deal.
It said: 'The Famous Grouse is Scotland's best-selling whisky and one of the top-selling Scotch whisky brands worldwide, renowned for its quality and heritage, while Naked Malt has garnered a loyal following among whisky enthusiasts and has significant growth potential within the blended malt segment.'
Søren Hagh, chief executive officer of William Grant & Sons, said: 'I am delighted to complete this acquisition and welcome The Famous Grouse into our portfolio. It is a remarkable Scottish brand with rich history and a strong market position in a number of countries. Over the coming years, we will build on this strong foundation and work to evolve the brand into a true global icon.
'We also see a lot of potential in Naked Malt, which will be a great addition to our portfolio. Together, these brands perfectly complement our vision for growth, and we look forward to investing in their future and sharing their stories with whisky lovers around the world.'
Hopefully, both Edrington and William Grant & Sons will prosper in the wake of this major deal as they pursue their respective strategies.
These are heavyweight players that have been through plenty of ups and downs in terms of the global trading environment over years and decades.
And the long-term success of both - taking account of all the benefits this has brought to the Scottish economy and labour market - is surely something to cheer.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
5 hours ago
- The National
Rare Scottish-grown golden raspberries to hit ASDA shelves
The golden berries will be available for a limited time window while crops last in selected Asda stores across the UK. The berries have even been praised for their flavour by one of Scotland's top chefs, Stevie McLaughlin, who has incorporated them into his dishes at his two Michelin-starred restaurant, and has insisted they would be great to use for home cooking too. Perthshire-based Bruce Farms teamed up with the supermarket with a limited number of special release punnets, which will be available alongside their more popular red counterparts. READ MORE: Network promoting Scotland in Europe shuts after funding is pulled Geoff Bruce, director at Bruce Farms, a fourth-generation farm in Meigle, said as he his always thinking of new ways to be innovative and to find new varieties which thrive in Scotland's climate. He said: 'The golden raspberries have been a real passion project for us and it's exciting to be at the forefront of introducing something new to the Scottish soft fruit sector. 'As growers, we're always looking at ways to innovate and explore different varieties that not only thrive in our climate but also offer a unique selling point for customers. Our product development team sourced the rare 'All Gold' raspberries, and we are pleased to let consumers try them for the first time, however they will need to be quick as the crop is limited. 'It's been incredibly rewarding to see them being grown successfully here in Perthshire's rich farmland and building on our family's 125-year legacy of farming and commitment to quality.' (Image: John Young) Bruce Farms have partnered with supplier Scotty Brand, a family run brand that works with farmers across Scotland, to deliver the golden raspberries to Asda stores. Scotty Brand was founded in Coatbridge in 1948 and has been a proud champion of locally grown fruit and vegetables on Scottish farms across the country. Andrew Young, Scotty Brand development manager, said: 'At Scotty Brand, we're committed to supporting Scottish growers and expanding variety of produce available to retailers and customers. 'Our long-standing partnership with Asda has enabled us to bring this exclusive new product to market, supporting growth and diversification within the sector while showcasing the exceptional quality of Scottish produce and the vital role of local, sustainable growing practices.' Ashley Connolly, Asda Scotland local buying manager, said the supermarket is committed to working with Scottish brands. She said:'It's exciting that Asda customers will be the first to be able to buy these limited-edition golden raspberries. 'Our partnership with Scotty Brand has continued to go from strength to strength, and by bringing this new product innovation to life is a credit to both the farm and supplier. 'Getting the product into Asda stores this quickly also highlights our ongoing commitment to supporting local growers as well as offering customers something new, fresh, seasonal and unique.'
Daily Mail
8 hours ago
- Daily Mail
Tech CEO axes incredible progressive perk after accusing his laziest employees of abusing it
A California tech CEO changed his company's paid time off (PTO) policy after he said his laziest employees were abusing it. Ryan Breslow, the founder of Bolt, announced on Tuesday that his San Francisco-based payment technology company would be axing unlimited PTO - a common perk in the industry. But Breslow said the incentive wasn't working and that his top performers were more burnt out than ever, while his laziest were enjoying too much time on the beach. 'It sounds progressive, but it's totally broken,' he said of the policy in a LinkedIn post. 'This leads to A-performer burnout. B-performer luxuries. And feelings of unfairness across the board. So we're flipping the script.' The new policy will allot four weeks of vacation time to every employee and each staff member will be mandated to take every single day of their PTO. 'No more confusion,' the 31-year-old founder, who has a net worth of $1.1billion, said. 'If we're asking people to move fast, build hard, and operate at the highest level, we need to protect their recovery time with the same intensity.' Employees can garner more than the 20 days the longer they're at the company. It is unclear if this also applies to his other company - a business that sells sustainable and green products, such as body care and coffee. Bolt specializes in partnering with businesses, such as jewelry designer Kendra Scott, for one-click payment systems and help convert customers into subscribers. Unlimited PTO hit corporate America in the early 2000s, with Netflix being an early adopter of the policy in 2003, according to HR Brew. In the 2010s, it began to become more popular, with brands like LinkedIn, General Electric, and Grubhub adopting the generous policy. By 2023, eight percent of US companies offered it. Despite the small number of companies actually offering the perk, job posting advertising it have decreased 50 percent between 2022 and 2024, according to Revelio Labs. Many companies have found similar findings to Breslow, with employee work-life balance actually decreasing and workers taking less time off than when they were given a set number of days. Some argue it's due to the ambiguity of the policy. Namely, an HR consulting company, found in 2022 that those with set PTO and unlimited took around the same amount of days per year off. 'Unlimited PTO shifts the decision making to the workers,' Yasemin Besen-Cassino, a Montclair State University sociologist, told Newsweek. 'On one hand, shifting the decision-making to the workers can potentially build trust with the employees and it can also remove additional layers of bureaucracy of requesting time off,' she continued. 'It has the advantage to potentially provide flexibility for workers - allowing them to take time off when they need it. However, just shifting the structure alone is not enough: the culture in the workplace shapes how we apply rules and regulations.' Besen-Cassino said high-performers who are worried taking time off will make their bosses think they're less dedicated will hesitate to 'take advantage' of the generous policy. And this isn't the first big change Breslow has made at his company. Last month, he announced his company would eliminate its HR department to focus more on 'efficiency' and less on 'fluff.' Unlimited PTO hit corporate America in the early 2000s, with Netflix being an early adopter of the policy in 2003. By 2019, six percent of US companies offered it. It jumped to eight percent by 2023 'This doesn't mean we don't value culture, oversight, or checks and balances. In fact, the opposite,' he wrote on LinkedIn. 'We care deeply about these topics. However, we believe there's a better way to do it, and one without middlemen getting in the way of our teammates and their managers.' These changes come as Breslow, who recently rejoined the team after three years, is conducting loads of internal changes inside the start-up that, at its peak, was valued at $11billion in 2022. The company originally made headlines in 2021 after it adopted a four-day workweek. Since then, it has had seen layoffs, investigations, and lawsuits due to its business practices. Breslow stepped down in 2022 after being accused of misleading investors by inflating how much the company was worth. Daily Mail has reached out to Bolt for comment.
Scottish Sun
8 hours ago
- Scottish Sun
Major food and drinks business that supplies Aldi & Tesco is on edge of collapse with staff ‘totally devastated'
Plus, other firms that have gone bust this month NOT SUPER Major food and drinks business that supplies Aldi & Tesco is on edge of collapse with staff 'totally devastated' A MAJOR baby food manufacturer is facing liquidation as the business is on the verge of collapse. Workers are "totally devastated" as they are about to lose their livelihood. 1 A major food manufacturer is on the verge of closure Credit: Alamy Nourisher, which produces and supplies yogurts, soups and tray meals to Aldi and Tesco, is reportedly shutting down. The Totton-based firm is set to have its assets sold to settle debts, according to Daily Echo. Devastated workers Around 100 locals who are employed by the company are now facing the grim prospect of losing their jobs. The staff have been crushed to learn the news as they struggle to make ends meet. Team leader Alan Morgan, who worked at Nourisher for six years, told Daily Echo: "Totally devastated after six years. "We had a text saying don't come into work until further notice. "Then we were told that they were looking for an administrator, then they said they were looking for a buyer, then they appointed an administrator, then back to waiting for an administrator, it's all been lies after lies." Alan hasn't received his paycheck for over 12 weeks, and he's not the only worker left to fend for himself. He continued: "Because of this, my bills couldn't be paid. "I had a letter from the landlord seeking possession of my car and bike finance unpaid, struggling to put food on the table, and there are about 50 of us left sorting things out to survive." Liquidation meeting scheduled The company has generated millions of pounds in sales annually, producing goods for companies like Mamia. But it is now awaiting closure with a meeting scheduled in London today to nominate joint liquidators, according to an official notice. Finbarr Thomas O'Connell and Clare Lloyd, both insolvency professionals from S&W Partners LLP, have been identified as the company's potential liquidators. The company is currently led by Ajay Chowdhary who was appointed just a month prior following the dismissal of the former directors. The Sun has reached out to Nourisher for comment. Other closures It comes after a major manufacturer has suddenly shut down due to "very difficult" market conditions. The furniture maker, which supplied "leading brands" across the UK, had to cease trading. Andrew Paul Furniture, which manufactured bespoke chairs and sofas, has closed down after a decline in sales. The firm stopped trading on June 26 after 15 years on the market and is about to go into liquidation. Meanwhile, a popular 138 year old bakery is set to axe 250 jobs following two very difficult years. Roberts Bakers, which supplies products to major supermarkets like Asda, Morrisons, and Tesco, is set to slash its workforce at its factory in Cheshire. The decision follows two years of tough challenges, including a devastating fire in 2023 that severely disrupted operations. The bakery, which employs around 700 people, said it had lost two-thirds of its bread production capacity for over a year after the fire.
