Also on the block: Glenturret.
Cutty Sark was acquired just eight years ago, and Ian Curle, ceo, said selling Cutty Sark and Glenturret “will enable greater focus and investment to support the long-term growth of the company’s premium portfolio including The Macallan, The Famous Grouse, Highland Park, The Glenrothes, and Brugal Rum.
“Premium spirits is the fastest growing area of the spirits market. Focusing our resources and investment on the brands best equipped to compete powerfully will help Edrington to capitalize on the long-term prospects from premium spirits.”
Curley said no employees are expected to be laid off in the process.
The company stepped up advertising and marketing, and says revenue rose 7%. That higher sales level should have translated to high profits but didn’t because of a one-time tax break.
Some 76% of total contribution was generated by the company’s premium brands, Edrington said. The Macallan’s contribution was up 7% and will launch its first global advertising campaign this fall with an $11 advertising budget.
Edrington boosted spending for Highland Park by 23%, saw profits rise 15%.
Curle said “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, Curle said.