CL targets more Scotch brands

It is understood that CL is in negotiations to buy the Islay-based Bunnahabhain distillery and the Black Bottle brand for about 10 million from Edrington Group, Scotland’s biggest whisky producer.

The move forms part of CL’s plan to build a global drinks business after combining Burn Stewart with its ownership of Angostura, the rum and mixer company, and its 54 per cent stake in Todhunter, a US rum producer.

CL refused 2to comment on the latest deal although industry sources say talks between the company and Noble Grossart, Edrington’s financial adviser, are at an advanced stage.

Noble Grossart has been seeking buyers for Bunnahabhain, Black Bottle and for Edrington’s two other non-core businesses - the Glengoyne distillery and the Langs Supreme brand - following the group’s decision to concentrate resources behind The Famous Grouse, Cutty Sark and the MaCallan and Highland Park malts.

Edrington was hoping to raise between 20 million and 30 million for all four non-core businesses and it is known that Noble Grossart rebuffed a bid from an undisclosed suitor for the portfolio late last year just as CL completed its 49 million takeover of Burn Stewart, whose brands include Scottish Leader.

One analyst said: "CL doesn’t have a brand that is capable of developing internationally. Scottish Leader is selling reasonably but it’s not a top quality brand whereas Black Bottle has the pedigree."

Edrington is also thought to have generated interest from potential buyers in Glengoyne and Langs Supreme as a separate package. A spokesman refused to confirm the latest developments.

Analysts are expecting the privately-owned Edrington to show an improved performance for its March year-end after announcing pre-tax profits of 49.5 million on 201 million of sales last year. Both Bunnahabhain and Black Bottle are said to be profitable businesses.