Latest news with #Edrington
The Herald Scotland
9 hours ago
- Business
- The Herald Scotland
Scotch whisky distiller - glass half-full or half-empty?
However, Edrington chief executive Scott McCroskie made no bones this time last year, when the distiller reported stellar results for the 12 months to March 2024, about the trading climate by that point having turned somewhat chillier. 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.
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
The Macallan Scotch whisky owner flags 'hostile' environment
And Edrington highlighted the fact its 'core contribution' measure of profits in the year to March 31 was, in spite of a 28% fall during the period, still 38% ahead of pre-pandemic levels. Edrington, which this week completed the sale of The Famous Grouse and Naked Malt brands to William Grant & Sons, reported a 26% fall in pre-tax profits before exceptional items to £274.4m for the year to March 31. Core revenue fell by 10% to £912m, with the group flagging a 'challenging economic environment' and reduced consumer demand in international markets. Edrington 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.' Read more The Scotch Whisky Association reported in February that the overall value of Scotch exports fell by 3.7% to £5.4 billion in 2024. And it observed then that global trading conditions remained 'turbulent' at the beginning of 2025. Edrington said today: 'The decline in sales was broadly consistent across international markets, with exceptions including a resilient performance by Brugal rum in the Dominican Republic and The Macallan in South Korea and Japan. 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.' Edrington flagged increased production and employment costs in the context of the 28% fall in core contribution to £291.4m in the year to March 31. Core contribution is defined by Edrington as profits from its branded sales and distribution after the deduction of overheads on a constant-currency basis. Edrington, which also owns The Glenrothes single malt, observed: 'Core contribution was 38% ahead of pre-pandemic levels.' Scott McCroskie, chief executive of Edrington, said: 'After several years of unprecedented growth for premium spirits and industry-leading results posted by Edrington, the business felt the full effect of the global economic downturn during the year. '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.' Edrington's principal shareholder is The Robertson Trust, which has donated £396m to charitable causes in Scotland since 1961. Noting Edrington's completion of its sale of The Famous Grouse and Naked Malt brands to William Grant & Sons on July 1, Mr McCroskie declared: 'This reflects our choice to focus on the premium end of the market, where we are best placed to compete.' He added: 'Looking ahead, the political and economic backdrop remains volatile, which we expect will continue to weigh on consumer sentiment in the coming year. 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. 'Edrington's strategic focus on ultra-premium spirits remains effective. We will continue to execute it to strengthen our brands and our business for the long-term benefit of our investors, our employees, and those who benefit from our own and our principal shareholder's charitable activities.' Edrington employs more than 3,000 people in its wholly owned and joint venture companies, with over half employed outside the UK. It distributes its brands to more than 100 countries.
Forbes
3 days ago
- Business
- Forbes
Glenfiddich Owners William Grant & Sons Acquire Famous Grouse
The iconic Scotch whisky brand - Scotland's bestselling whisky - has now been acquired by family ... More firm William Grant & Sons. Following a number of regulatory approvals including from the UK Competition & Markets Authority, Scotch whisky titans and family firm William Grant & Sons has officially acquired two well-known whisky brands—The Famous Grouse and Naked Malt. Though for months the acquisition was an open secret within the industry, it was officially announced today (July 1st) and marks a significant addition to the company's iconic stable of Scotch whisky brands and distilleries which includes names like Glenfiddich, Balvenie, Monkey Shoulder, and many more. The purchase sees the brands transferred from previous owners Edrington, who own the Macallan and Highland Park distilleries, amongst others. According to The Northern Scot, Edrington had announced the agreement last year in September, as the company wanting to focus further on 'ultra-premium spirits'. William Grant & Sons' addition of Famous Grouse and Naked Malt further strengthens its offering in the Scotch blends where Famous Grouse has long been a leader—it's the bestselling whisky in Scotland. Soren Hagh, the recently appointed chief executive of William Grant & Sons, expressed his enthusiasm for the acquisition in the official press announcement: '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.' The deal concludes several months of negotiation and transition planning between William Grant & Sons and Edrington, the Glasgow-based company that had owned Famous Grouse since the 19th century. While Edrington has been shifting focus toward premium single malts like The Macallan and Highland Park, Famous Grouse had remained a key revenue generator in its portfolio. According to industry coverage the acquisition includes both the brands and their associated inventory (including spinoff brands such as Famous Grouse Smoky Black, Sherry Cask Finish, and others) are now fully under WG&S control, though exact production arrangements haven't been revealed. It's likely that existing contracts and bottling facilities will stay in place for now. First launched in 1896, Famous Grouse is the creation of grocer Matthew Gloag III from Perthshire and has been Scotland's bestselling whisky since 1980. It also holds a Royal Warrant, which was renewed by King Charles III in December 2024, and exports to over 100 countries. Naked Malt was first launched as the Naked Grouse in 2011 before becoming a standalone brand in 2017 and then renamed in 2021. This one is a blended malt whisky aged in first-fill sherry casks that's proven to be a particular hit in Asian markets. With the acquisition of both brands, William Grant & Sons strengthens its hand in the blended market - this is particularly interesting as so many other whisky companies, such as Edrington, focus on going premium these days. In any case, consumers won't see any significant changes for the moment with the shift in ownership, but it will certainly be interesting to see what comes next for such an iconic whisky brand like Famous Grouse.
Daily Record
02-05-2025
- Health
- Daily Record
Ayrshire man raises £21,000 taking on London marathon in memory of his dad
Lindsay McGarvie raised the impressive sum of £21,000 for the British Heart Foundation. An Ayrshire man took on the London Marathon in honour of his dad to raise funds for the British Heart Foundation (BHF). Lindsay McGarvie, 55, from Symington, completed the full 26.2 mile course in just over four hours last week (Sunday, April 27), as he raised £21,000 for the charity. It was the second time the dad of three has completed the London Marathon but this time had a special meaning for Lindsay. Harry, Lindsay's father who hailed from Kilmarnock, died following a heart attack in 2022. Upon crossing the finish line, Lindsay said: 'Taking part in the 2025 London Marathon for the British Heart Foundation, was such a huge challenge and an incredible experience. 'The atmosphere around the course was electric and it was amazing having so many people cheering me on. 'It was incredibly hot during the race and definitely my toughest ever marathon, but the memory of my dad and the donations from my incredible friends were all the inspiration I needed to get to the finish line. 'The research funded by the BHF makes such a difference to the over 7.6 million people in the UK living with heart and circulatory diseases. 'I'm proud that I'm doing as much as I can to support their amazing work to help keep families across the UK together for longer.' Lindsay's employers Edrington generously offered to triple match fund donations made to his fundraiser which has left the total sitting at £21,000. Jas Dhanda, events manager at the BHF, added: 'It's fantastic to see Lindsay's courage and determination in helping us fund lifesaving research. 'Without the dedication of our team of BHF runners and the commitment of people like Lindsay, we wouldn't be able to fund research that has already revolutionised treatments and transformed the lives of millions of people in the UK. 'The stories of why our amazing supporters take part never fails to amaze me and it was incredible to see Lindsay and 760 others take on such a gruelling challenge to help save and improve lives.' Over 760 BHF runners took to the streets of London and collectively raised a total £1.5 million for the charity.
