Distillers join together to toast growth as big names see sales rise

By Peter Ranscombe
Published on Saturday 24 December 2011 00:00

FAMOUS Grouse-maker Edrington and bourbon giant Jim Beam are toasting a rise in profits at their joint distribution business as connoisseurs continue to sate their thirst for big brands.

Stirling-based spirits and wine distributor Maxxium UK posted a 31 per cent rise in pre-tax profits to £5 million following increased demand for the drinks makers’ core brands.

Turnover increased by 11 per cent to £233.1m and included the first full-year contribution from the firm’s travel retail business, which sells to European airports, according to accounts filed at Companies House.

Edrington’s whiskies include Cutty Sark, Highland Park and the Macallan, while Jim Beam’s range features Ardmore, Laphroaig and Teacher’s.

Maxxium also distributes products made by third parties, including Stolichnaya vodka, Bols liqueurs and student-favourite After Shock.

Staffing levels settled down to 245 workers over the course of the year following an influx of about 50 staff during the previous 12 months as a result of a major restructuring.

French drinks giant Pernod Ricard pulled its Vin & Spirit brands – including Absolut Vodka – out of the sales, marketing and distribution alliance in 2008, while fellow French producer Remy Cointreau followed suit in 2009.

But Maxxium has reaped the rewards of taking on the distribution of its owners’ high-end brands, having posted a 50 per cent surge in profits last year.

As well as its whiskies, Edrington owns the Brugal rum brand in the Dominican Republic.

News of the latest bumper surplus comes just a week after New York-listed Jim Beam – home to brands including Courvoisier cognac, Sourz liqueurs and Jim Beam and Maker’s Mark bourbons – entered the Irish whiskey market by snapping up Ireland’s last privately-owned distiller.

Beam, which was spun out of Fortune Brands as a standalone drinks outfit in October, bought Cooley from the Teeling family for $95m (£61m).

Since Beam was de-merged from Fortune Brands, speculation has been rife that the company could be broken up in a takeover bid from the world’s larger drinks conglomerates.

London-listed Diageo, which is Scotland’s largest whisky distiller, has been touted as a potential buyer for the firm, especially its bourbon portfolio. But such a move could raise competition issues and so a combination of large drinks companies coming together to buy Beam has been tipped as the most likely outcome.

French spirits giant Pernod Ricard – which owns the Chivas Brothers distilling business in Scotland – has been linked with such a move, along with other players such as Bacardi, which owns the Dewar’s Scotch range.

Beam’s own portfolio of whisky labels had been assembled by Fortune in 2005 as part of Pernod Ricard’s break up of Allied Domecq, which had owned the Teacher’s business.

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Saturday, December 24, 2011 at 12:38 PM

Iv'e got a nice bottle of Red Stag as my Christmas Day Tipple. And I saw a Haggis! It was sitting with Santa on his Sleigh! Honest!

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