Morrison Bowmore sheds executives to sharpen focus on domestic targets

Published on Saturday 24 January 2009 12:41

MORRISON Bowmore, the distiller best known for its eponymous Islay malt, has axed a number of senior executive roles in a major shake-up of its global sales team.

The Glasgow-based firm, a wholly owned subsidiary of Japanese drinks group Suntory, has moved to streamline the business in a bid to tap into the potential of the UK market.

It is understood the firm has combined the roles of sales and marketing, replacing a number of senior sales executives. The move comes on the back of a launch of a number of new expressions of its two key brands, Bowmore and Auchentoshan, and follows the departure of a senior brand manager in November.

Chief executive Mike Keiller, who last year unveiled pre-tax profits of 3.16m on a turnover of 39m, said the loss of two or three senior roles was regrettable but necessary in streamlining the business.

He said: "Last year was our best ever year financially, but we are much stronger in duty free than we are in our domestic markets, and I am very keen to focus our resources into two or three domestic markets. We have looked at how we are structured and changed that. It is a positive change. The two roles have merged together and have been streamlined."

In December, the firm unveiled a limited edition expression of its Bowmore single malt Scotch. Named the Maltmen's Selection, it was created from five sherry casks, selling for 120 a bottle. This followed the introduction of a new Auchentoshan 1988 Bordeaux Wine Finish priced at 100.

Since losses in 2002 and 2003, the firm has seen a leap in pre-tax profits, and this year it should hit the 5m mark on group turnover of nearly 40m. As well as the growth of single malts, this has been achieved by ditching the unprofitable own-label business.

In October, Keiller unveiled a 500,000 investment in its Auchentoshan distillery, including a 30-seat cinema and four-star conference centre. At the time he told Scotland on Sunday that the whisky industry had been slow to wake up to the potential of tourism.

He said: "We are growing the business (core profits] between 15% and 20% per annum, which is well ahead of Diageo and Pernod and shows the strength of single malts. Yes, we are small, so it is not a completely fair comparison, but it is one I certainly made to Suntory recently."

Keiller's portfolio touches three regional bases: Bowmore from Islay, Glen Garioch from the Highlands, and Auchentoshan in the Lowlands, just outside Glasgow.

The news follows a torrid time for the UK's bar and pub sector. This month, Punch Taverns, Britain's biggest pub operator, has announced the loss of up to 100 head office jobs, while Scottish & Newcastle is cutting about 140 jobs.