Famous Grouse sale on the rocks
The UK’s competition watchdog, the Competition and Markets Authority (CMA), has launched an investigation into the anticipated acquisition of The Famous Grouse by William Grant & Sons.
In September it was announced that Edrington had agreed to offload whisky brands The Famous Grouse and Naked Malt to William Grant & Sons for an undisclosed sum, in a move that would see The Macallan owner exit the blended Scotch category.
Now, the CMA has launched an investigation to determine whether the merger, if completed, would result in unfair market dominance or hurt competition in a significant way, such as by making goods or services more expensive, reducing choice, or stifling innovation.
In a statement released yesterday (29 January), the CMA said it had initiated a probe to assess whether the deal “will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
The competition regulator has invited comments on the transaction from any interested party, with a deadline for submissions set for 12 February.
The CMA has also set a deadline of the 27 March for its ‘phase one’ decision. If serious concerns are raised about the impact of the merger, the investigation will be referred to a second phase, which will be led by an independent panel of experts.
When the sale of the two Scotch brands was first announced, Edrington said it marked the next stage of its mission to be the world’s best at crafting exceptional ultra-premium spirits brands.
Meanwhile, a spokesperson for William Grant & Sons noted that The Famous Grouse, with its 125-year history, would be a significant addition to its portfolio.
“The brand has potential for innovation and international growth in a number of markets, and we’re excited about what the future holds,” they said.
In Edrington’s 2024 financial report, it said The Famous Grouse “performed well, particularly in the brand’s key markets where leadership positions are held”.
According to NIQ data, The Famous Grouse remains the largest Scotch whisky brand in UK supermarkets, with sales of £173.7 million (US$216.1m) recorded in the 52 weeks to February 2024.
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