Yesterday, Edrington reported its financial result for 2017-2018.
In short, revenue and profit are up. Cutty Sark and the Glenturret is up for sale. The Glenrothes will see a new range and packaging later in this summer.
Edrington, the owner’s of premium spirit brands as the Macallan and Highland Park reported their results for 2017-2018. Core revenue is up 7% and profit before tax up 3%.
Edrington CEO Ian Curle announced Edrington will focus on their premium portfolio consisting of The Famous Grouse, The Glenrothes, Highland Park, The Macallan, and Brugal Rum. This means Cutty Sark and Glenturret will be put up for sale this summer. Edrington is aiming for all 31 employees at the Glenturret will transfer to the new owner. What will happen to the Famous Grouse Experience Center is unknown.
Commenting on the 2018 results, Ian Curle, chief executive, said: “2017-18 was a strong year of growth and increased investment for Edrington.
“Economic and market developments remain encouraging in the near term. All regions are experiencing an upturn in economic growth and Scotch Whisky exports are also in growth.
“The premium segment of Scotch Whisky and other spirit categories is the fastest growing, reinforcing Edrington’s emphasis on premium brand building.
“While consumer trends are encouraging, the geopolitical context, including Brexit, remains uncertain. Scotch whisky is a robust and successful industry but it does face increasing competition from other authentic spirit categories leading to the 400+ trade barriers faced currently. Against this backdrop we want our governments to create a climate where economic development and growth is actively encouraged and rewarded.
“Despite ongoing geopolitical uncertainty we are confident about the medium and long-term prospects for the business and will continue to invest in our people, brands, and processes.
“With its premium brand portfolio, proven strategy, and management capability, Edrington remains well-positioned to deliver further growth.”
Edrington’s 2020 Strategy
Accelerate Highland Park
Highland Park saw a 23% increase in marketing investment
Highland Park delivered a 15% contribution growth
The new ranges, packaging, and marketing programmes were well received by consumers
Energise Regional Power Brands
Regional Power Brands saw a growth with a contribution up 4%
The blended Scotch market continues to be challenging. The Famous Grouse sustained a low single figure contribution decline but strengthened its position in the UK, having an all-time high market share
Perfect the Macallan
The Macallan delivered a 7% contribution growth
The Macallan’s first global marketing campaign is to commence this autumn with a £11m budget
Transform Super Premium
The Glenrothes, which was acquired in April 2017, has expanded distribution to 30 new markets.
Edrington is well-positioned for the growth in Tequila, which as a segment saw double-digit growth