The independent family distiller behind premium spirit brands including Glenfiddich, Drambuie and Hendricks Gin has seen an increase in profits.
Banffshire-based William Grant & Sons yesterday revealed profits after tax of £139.8 million for 2014, an increase of 4% year on year to a record high.
The result came despite a reduction in group turnover to £933.2m during the year, a decrease that Grant’s attributes to a planned reduction in the distribution of third-party agency brands.
The firm said the “strategic shift” had allowed it to focus on the group’s wholly owned spirits portfolio which produced a 9% rise in revenue in the period.
The firm said its highest ever profits came despite challenging conditions in terms of negative foreign exchange impacts and 7% decline in the value of Scotch whisky exports year on year.
“This success was driven by our constant focus on brand building and investing for the long term,” chief executive Stella David said.
Among the best performing brands in the Grant’s stable were Glenfiddich, The Balvenie and Hendricks, which continued to grow rapidly across the world.
The firm said that its focus on investment in “innovation brands” was paying dividends, with Monkey Shoulder coming second in a survey of 100 leading bars in terms of overall sales.
A major highlight of the year for Grant’s was the acquisition of Scotch whisky liqueur brand Drambuie. The deal was completed for an undisclosed sum, but it was reported to have been acquired for a sum around £100m.
Drambuie slotted “naturally” into its premium brands portfolio and was set to deliver long-term value, the firm said.
Grant’s said it had also continued to invest in Reyka vodka and premium tequila brand Milagro.
Ms David added: “The business and our brands are well positioned to continue their growth in 2015 and beyond.”
Other highlights of the year included a €35m investment in a new, state of the art, Irish malt distillery which will return distilling operations to Tullamore after a 60-year absence.