Now Grouse is flying high in key emerging markets

FAMOUS Grouse-owner Edrington has cheered double-digit increases in sales and profits thanks to a growing taste for Scotch in emerging markets and investment in its five key brands.

The Glasgow-based group grew turnover to 553.4 million in the year to 31 March, new accounts reveal, up from 468.3m in the previous 12 months, following continued strong growth in markets such as China and Russia.

Edrington also grew sales of its premium brands - including single malts Highland Park and the Macallan - in the UK and United States, which helped boost operating profits by 14 per cent to 161.2m.

Pre-tax profits rose 24 per cent to 154.7m, swelled by the sale of the Glenrothes single malt brand to wine importer Berry Brothers & Rudd for 14.6m.

Ian Curle, chief executive of Edrington, which celebrates its 150th anniversary this year, said: "Brand growth has been driven by increased investment and improved economic conditions in many of our markets.

"We have continued to invest in our premium brands despite difficult trading conditions in mature markets in recent years. This investment is now paying off as we see stability returning to many western markets."

Curle saw his total pay package rise to 1.2m, including an increase in his salary to 373,000 from 365,000.

The chief executive admitted that the rise in sales in the UK and US had been offset by declines in Greece and Spain, as Europe's debt crisis took its toll.

The bumper profits allowed the group to increase its total dividend by 16 per cent to 27p a share, triggering a 17.6m payout for the Robertson Trust, the charity that owns the distiller.

The trust - set up 50 years ago by Agnes, Babs and Elspeth, the granddaughters of group founder William Robertson - supports Scottish charities and made 559 donations worth a total of 11.4m in 2010-11.

Projects funded in the past year included the Robert Burns Museum in Alloway, the Teenage Cancer Trust unit at Edinburgh's Western General Hospital and Alcohol Focus Scotland, which is rolling out an national initiative to tackle alcohol abuse.

A spokesman for the company said that promotional activity around the Famous Grouse had cemented its position as Scotland's best-selling blended brand and the UK's number two, behind Bell's, one of the labels owned by Diageo, Scotland's biggest whisky producer.

He added that - following the acquisition of drinks distributors in China and Hong Kong, swelling the global headcount to 2,300 - China was a priority for the group, especially with the Macallan single malt brand.

Emerging markets are the current driving force for growth in the whisky industry, with a free-trade agreement that came into force last week set to boost sales in South Korea and industry body the Scotch Whisky Association securing extra legal protection for Scotch in China.