Dufftown whisky giant William Grant & Sons has hailed “record” profits last year despite a dip in turnover.
The maker of single malt Glenfiddich said profit after taxes rose 4% to £139.8million, while turnover fell 16% to £933.2million. The family-owned firm said the fall was “entirely due to a planned reduction in the distribution of third party agency brands”.
It added that the move away from selling other branded spirits was a “strategic shift” that “has allowed more focus on the group’s owned portfolio of core premium brands”. William Grant said that turnover in its range of top brands – which includes Hendrick’s gin – increased by 9% year on year.
This compares to “challenging conditions” that saw the value of Scotch whisky exports decline by 7% year on year, the firm pointed out. It said the sale of spirits internationally had also been affected by “negative foreign exchange impacts”.
Stella David, William Grant & Sons’ Prochief executive said: “This success was driven by our constant focus on brand building and investing for the long term. The business and our brands are well positioned to continue their growth in 2015 and beyond.”
The firm said it enjoyed “strong value growth” from Glenfiddich and The Balvenie, with sales of “super-premium” Hendrick’s continuing to grow “rapidly” across the world.
Investment in the firm’s “Innovation Brands” continues to be a successful formula, the firm said. For example, its Monkey Shoulder – a blend of Balvenie, Glenfiddich and Kininvie malts – was named the second best-selling Scotch in a poll of 100 leading bars across the world, and was also named as their “top trending” whisky.
During the year the group acquired the Drambuie, the iconic Scotch whisky liqueur brand, from the Mackinnon family. The firm said the Edinburgh-based company which produces the blend of Scotch and heather honey, “fits naturally” with its premium branded portfolio and was set to deliver “long term growth”.
Last year the firm also launched Kininvie 17 year old, further variants of The Girvan Patent Still and Ladyburn single malt both as a 1974 vintage and a 41 year old variant. The company also continued to invest in Reyka vodka and premium tequila brand Milagro, it said.
Capital expenditure remained at record levels including a £35million investment in a new distillery at Tullamore in Ireland, marking the return of distilling to Tullamore town after 60 years.
The new distillery will support the ongoing growth of Tullamore Dew, the world’s second largest Irish whiskey, which was acquired in 2010.