• Text size      
  • Send this article to a friend
  • Print this article

European sales drop fails to dent Drambuie's profits

DRINKS company Drambuie has reported a 63% hike in profits in spite of tumbling sales in southern Europe.

Global sales value increased 5% from £21.9 million to £22.9m even though the Greek market, traditionally one of the firm's strongest, plunged 27%.

European sales ticked up from £9.76m to £10m, Americas from £9.5m to £10m and the rest of the world from £2.5m to £2.9m.

Chief executive Michael Kennedy said the company had made gains in new markets such as Chile, India and south east Asia plus more established territories including Germany, Turkey and Australia.

There was also an improved performance in the key market of the United States, and the business saw strong benefits from the launch of the Drambuie 15 spirit.

Currency exchange gains of more than £500,000 helped push pre-tax profits up 63% from £2.2m to £3.6m in the 12 months to June 30 this year.

Mr Kennedy said: "Greece has been disappointing, but we have had additional growth from Drambuie 15 which has been spread over a number of markets.

"At the moment it doesn't seem to be showing any signs of cannibalisation of Drambuie Original sales, which is good.

"We have picked up new distribution points in the United States. We made some real gains. For example, in Texas where about 20% of the Drambuie Original outlets are carrying Drambuie 15 and in Illinois it is up to 35%."

The newer liqueur, which has 15-year-old Speyside malt whisky as its base and a reduced level of honey sweetness, was outselling the original brand in airports at Heathrow, Gatwick and Edinburgh over the Christmas period and it has grown 12% in Dubai, which is the largest duty-free airport in the world.

The company intends to keep its marketing spend of around £1.3m at a similar level in the current trading period. It ended the financial year with net funds of more than £2.15m.

Employee numbers were steady at 21, although staff costs declined from £2.8m to £2.4m.

Directors' remuneration dropped from £944,000 to £747,000 with payouts under a long-term incentive plan (LTIP) also falling from £1.25m to £283,000.

The highest-paid director received basic remuneration of £306,000, compared to £459,000 in 2011, plus a further £142,000 from the LTIP. Dividends increased from £1.5m to £1.575m.

The original Drambuie recipe was supposedly passed down from Bonnie Prince Charlie to a member of the MacKinnon clan in return for giving shelter following the Battle of Culloden.

The recipe was passed on to other people before being acquired by a different MacKinnon family in the early 20th century, and the business remains under the majority control of that family.

Contextual targeting label: 
Business

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules, which are available here.

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.