GLENMORANGIE has become the latest whisky maker to show immunity from the economic slowdown, revealing its profits more than doubled in 2007.
The Broxburn-based firm has posted profits that grew to £12.6 million over the year to the end of December.
According to the latest accounts filed with Companies House, the Glenmorangie Company also reported a £15m growth in turnover to £83.8m.
UK sales for Glenmorangie, which makes the Glenmorangie and Ardbeg single malt brands, rose 25.9 per cent to £51.5m, while export sales grew 23 per cent to £15.5m, driven by a strong demand for products in Asia.
The strong performance comes amid a boom period for the Scotch whisky industry, which is enjoying a massive increase in demand in markets such as China and eastern Europe.
Despite a world economic slowdown, a number of firms, including Famous Grouse maker Edrington and Airdrie-based distillery Inver House, have recently boasted strong sales and expansion plans to cope with the increased demand.
Campbell Evans, director of government and consumer for the Scotch Whisky Association, said the industry looked to be on track for another record year of sales, after reporting bumper exports worth £2.8 billion in 2007.
He said: "We have seen growth over the past two years in all parts of the globe. You think about the credit crunch, but that isn't necessarily a global phenomenon affecting every market.
"We have seen tariff barriers come down in India, while in China and eastern Europe there is a lot more economic prosperity in terms of disposable income. Even in the US, premium spirits are what people are choosing to drink."
He said the industry had collectively announced £450m investment in just the past 18 months as companies planned for the next ten to 15 years of whisky sales.
The latest figures from the Scotch Whisky Association showed that exports of Scotch whisky earned the UK economy £90 every second in 2007.
Evans added: "It is early days for this period as a high proportion of sales occur in the last seven months of the year.
"However, things do seem to be on track at present."
Last month, Glenmorangie announced plans to move its headquarters to Edinburgh and ditch its blended Scotch brands as part of a £45m investment programme.
The two-year programme – which will also see the firm upgrade two distilleries – has been launched to allow the company to focus on its two single malt brands in response to growing market demand for top-end Scotch.
As a result of the changes, the company is also likely to cut a number of jobs, although it is not yet known how many.
Glenmorangie's annual accounts showed that the company invested a total of £8m over the reporting period, which included installing a new bottling line.
In April, Inver House Distillers, which produces brands including Old Pulteney, Balblair and Speyburn, said pre-tax profits for 2007 had soared to £3.8m in 2007 – 107 per cent up on the previous year – while Edrington reported last month that investment in core whisky brands had prompted a near 5 per cent rise in full-year sales to £291.5m.
No-one from Glenmorangie was available to comment on the figures yesterday.
The full article contains 551 words and appears in The Scotsman newspaper.
