Drambuie sales fall flat before William Grant takeover

Scotch whisky liqueur brand Drambuie has revealed a fall in sales and profits ahead of its takeover by William Grant & Sons.

Drambuie’s sales and profits suffered in 2013/14, ahead of its takeover by William Grant & Sons

In the year to June 2014, the company reported turnover of £21.3 million, down 3.7% from £22.2m in 2012/13.

Its total gross profits also fell from £16m to £15.2m in the year, while in European turnover fell from £10m to £9.8m, and from £9.2m to £8.7m in the Americas.

The company said during the year it focused on its “key” markets of the UK, US, Canada, Australia and global travel retail, also endeavouring to develop its presence in emerging markets including India and Vietnam.

It added that it would continue to “invest significant resources and efforts” behind its business strategy focusing on the UK, US and GTR.

Drambuie also said it expects its new premix Drambuie Hot Apple Toddy, launched in the UK last year, along with its recently launched advertising campaign, to benefit its business in 2014/15.

In its financial results for 2013, Drambuie revealed that its overall operating profit had risen 5% to £3.37 million, while its “star” UK market saw growth of 17%. However, the brand admitted to “flat” sales in the US – its “most important market” – and reduced distributor stockholdings in Asia.

UK drinks group William Grant & Sons, owner of Glenfiddich Scotch whisky and Hendrick’s Gin, announced that it had acquired Drambuie for an undisclosed sum in September last year.

The brand had spent more than 100 years under private ownership of the MacKinnon family.

William Grant revealed it planned to completely redesign Drambuie as part of a bid to “re-engage” consumers, launching a new TV advert for the brand set in 1960s New York.

A blend of Scotch whisky, spices and honey, the liqueur dates back to 1745 and was became famous in the 1950s as the main ingredient in the Rusty Nail – a cocktail favoured by member of the Rat Pack.