Edrington, the owner of The Macallan, has announced a significant deal in the Scotch whisky sector, agreeing to sell The Famous Grouse and Naked Malt Scotch whisky brands to William Grant & Sons. The Glasgow-based drinks group described the move as the “right moment” to exit the blended category, according to a press release.
The deal, which is subject to regulatory approvals from the UK’s Competition and Markets Authority, will see the Famous Grouse brand change hands. Edrington expressed confidence that both blended Scotch whisky brands are “well-positioned to continue to succeed” under William Grant & Sons’ ownership.
“This decision is driven by our strategy to focus on our core strengths and the growth opportunities in the ultra-premium spirits category. We consider this the right moment for Edrington to exit the blended Scotch category and focus on our core portfolio of ultra-premium spirit brands.” – Scott McCroskie, Chief Executive of Edrington.
The financial details of the transaction were not disclosed, but Edrington stated that the deal marks the next stage of the company’s mission to be the world’s leader in crafting exceptional ultra-premium spirit brands.
William Grant & Sons, a family-owned company, expressed enthusiasm about the acquisition. “Having been around for over 125 years, The Famous Grouse has a rich history and would be a significant addition to our portfolio,” the company stated. “The brand has potential for innovation and international growth in a number of markets, and we’re excited about what the future holds.
The sale comes at a time when Edrington has reported strong financial performance. In July, the company announced a 6% rise in underlying annual pre-tax profits to $522 million, with core revenues jumping 11% to $1.48 billion for the year ending March 31, 2023. McCroskie noted that the “post-Covid spirits boom” had come to “an abrupt end” during the last fiscal year, leading Edrington to plan for lower levels of growth than those seen since the end of the pandemic.
This deal represents a significant shift in the Scotch whisky landscape, with two major players realigning their portfolios to focus on their respective strengths in the evolving spirits market.
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