Sir Ian Good, chairman of Famous Grouse and Highland Park distiller Edrington Group, has lambasted the SNP Government's proposal to introduce minimum pricing for alcohol in an attempt to combat drink-related illness.

Sir Ian Good, chairman of Famous Grouse and Highland Park distiller Edrington Group, has lambasted the SNP Government's proposal to introduce minimum pricing for alcohol in an attempt to combat drink-related illness.

Good, writing in Glasgow-based Edrington's annual report, describes the plan as "ill conceived" and claims that it could cause serious damage to a Scotch whisky sector that supports tens of thousands of jobs.

Addressing the hot topic of "alcohol's place in society", Good said: "As an industry we have increased our efforts to promote sensible consumption and Edrington has developed an education programme for our employees and consumers. In spite of these measures, politicians in Scotland have been eager to grab headlines with ill-conceived measures which they believe will reduce consumption."

Describing the UK Government's decision to raise excise duty on Scotch by more than 13% in 2008 as "very dis-appointing", Good said of the Holyrood administration's proposal: "The minimum-pricing scheme which has been proposed could increase the price of a bottle of whisky by more than the two UK duty increases in 2008.

"This proposal from a government in Scotland if enacted, will have a serious impact on an industry which not only employs, directly and indirectly, over 40,000, but is also making an iconic Scottish product renowned throughout the world."

Edrington's annual report, published yesterday, shows the distiller achieved a 30.5% rise in underlying pre-tax profits to £94.8m in the year to March 31. Turnover increased by 44% to £419.9m.

A spokesman for the company attributed much of these increases to Edrington having received the first full-year contribution from Dominican Republic rum business Brugal. Edrington, which is controlled by a charitable trust, announced its purchase of a 61% stake in Brugal in February 2008.

Ian Curle, chief executive of Edrington, highlights a softening of demand in several of Edrington's main inter-national markets because of the global economic troubles.

He said: "Many of the main world economies have entered recession due to the problems originating in the financial sector. Whilst this will affect our growth ambitions in the short to medium term, we remain confident about our long-term prospects."

Edrington, which also distills The Macallan single malt, is now in a two-way global distribution alliance with US company Beam Global Spirits & Wine. The pair was previously part of the four-partner Maxxium distribution alliance but the other two members, Remy Cointreau and Pernod-Ricard of France, pulled out. Pernod-Ricard had become involved in Maxxium as a result of its takeover of Vin & Sprit of Sweden, the company behind Absolut vodka.

Edrington's annual report reveals the firm, in 2008-09, booked a £14.6m share of com- pensation from Pernod-Ricard, arising from the French company's decision to remove Absolut from Maxxium.

Compensation from Remy Cointreau for its withdrawal from Maxxium had been accounted for in the prior financial year, and an Edrington spokesman said the Scottish distiller's share of this amounted to 56m.

The sterling figure shown for compensation in the 2007-08 accounts is £49.5m.

Edrington's share of re-organisation and closure costs relating to the exit of Pernod-Ricard and Remy Cointreau from Maxxium, and the formation of the new distribution alliance with Beam Global, amounted to £27.3m in the 2008-09 financial year. Both the compensation and exceptional reorganisation and closure costs are treated by Edrington as exceptionals and are excluded from the calculation of underlying profit figures.

Curle said in the annual report that the new distribution alliance with Beam Global "gives us greater control in 24 of our most influential international markets".

These 24 markets, Curle noted, account for 60% of Edrington's profits.

The annual report shows Curle's remuneration package totalled £677,000 in 2008-09, down from £839,000 in the prior financial year. His 2008-09 rewards included emoluments of £344,000, benefits of £142,000 and a payment of £125,000 under the performance-related annual incentive plan. The remaining £66,000 comprised a pay-out under the performance-related long-term incentive plan, and "other payments".

The fall in Curle's total remuneration largely reflected significantly lower pay-outs under the annual and long-term incentive plans in 2008-09, compared with the previous financial year.

The deficit on Edrington's pension schemes increased from £22.6m to £40.8m during the year to March 31. This was in spite of a lump sum payment of £6.1m by Edrington, in addition to the distiller's contributions of 35% of pensionable salary.