Ian Curle, chief executive of Famous Grouse and Macallan distiller Edrington, said yesterday he was "generally cautious" about the eco- nomic outlook and highlighted the prospect of "a sustained downturn, not just in the UK but in many global markets".
Ian Curle, chief executive of Famous Grouse and Macallan distiller Edrington, said yesterday he was "generally cautious" about the eco- nomic outlook and highlighted the prospect of "a sustained downturn, not just in the UK but in many global markets".
Curle's comments, which contrasted with the ebullience yesterday of Diageo chief executive Paul Walsh, came as Glasgow-based Edrington announced it had signed an agreement with SPI Group for the exclusive UK distribution rights to SPI's Russian-made premium vodka, Stolichnaya.
"Stoli" will be distributed by Edrington's Maxxium joint venture. From March next year, when French drinks group Rémy-Cointreau leaves this distribution joint venture, Maxxium will be a two-company alliance between Edrington and US giant Beam Global Spirits & Wine.
Stolichnaya will replace Absolut in the Maxxium stable. Absolut distiller V&S Group, of Sweden, was bought by Pernod Ricard of France earlier this year and, following this deal, V&S left Maxxium on October 1.
Edrington said yesterday that figures compiled by the International Wine and Spirit Record showed Stolichnaya to be the fastest-growing premium vodka brand in the UK, having increased sales by 80% in the last three years.
Mulling the global economic backdrop for Edrington, Curle said yesterday: "Economic cycles come and go. However, it does look as if we are in for a sustained downturn, not just in the UK economy but in many global markets. As we move through the next year or two, we must hope that the short-term fluctuations in financial markets will settle down, and that we can perhaps look forward to a more normal period of economic recovery and stability.
"In the meantime, our priority as a business is to stay focused on producing and developing our strong portfolio of premium international spirit brands."
Edrington's annual report, published yesterday, showed that Curle's remuneration, excluding payments in lieu of pension following his withdrawal from the group pension scheme, rose to £712,000 in the latest financial year to March 31, 2008, from £475,000 in the prior 12 months.
This jump was mainly the result of an increase in payouts from incentive plans related to annual and long-term targets to £409,000, from £185,000 in the prior financial year.
In addition, Curle received £127,000 in benefits, including a "non-pensionable salary supplement" in lieu of pension scheme membership.
Edrington, which employs about 810 people in its Scotch whisky operations and is based at Great Western Road on the slopes of Drumchapel, announced in July that its underlying pre-tax profits rose by 9.7% to £75.6m in the year to March 31.
The company, which is controlled by a charitable trust, diversified recently with the acquisition of 61.5% of Dominican Republic rum brand Brugal.
Sir Ian Good, Edrington's chairman, addresses the issue of alcohol in society in the annual report. The SNP administration at Holyrood has been vocal on the issue of alcohol consumption.
Good says: "The vast majority of people who consume alcohol do so responsibly, but this is a difficult message to deliver and politicians are often eager to grab headlines with ill-conceived plans to limit consumption and which will not cure the problem. It is crucial that as an industry we are seen to be doing everything we can to promote sensible consumption and Edrington is playing its part in this campaign with a programme of education, to our staff and our consumers."
