Drambuie gives William Grant flavour position

William Grant’s takeover of Drambuie whisky liqueur gives the group the opportunity to play in the flavoured whisky category “without damaging its existing Scotch portfolio”.

In its acquisition of Drambuie, William Grant & Sons has gained a foothold in the burgeoning flavoured whisky segment

According to Jeremy Cunnigton, senior analyst at Euromonitor International, the acquisition is a “good fit” for UK drinks group William Grant, allowing it to enter the flavoured whisky category without lining up a flavour extension of one of its core Scotch whisky brands, such as Grant’s.

William Grant, maker of Glenfiddich Scotch whisky and Hendrick’s gin, yesterday confirmed it had acquired Drambuie, which has spent the past century under family ownership, for an undisclosed sum.

“This acquisition gives William Grant the chance to move into flavoured whiskies and strengthen its position in liqueurs,” said Cunnington. “In some ways this great for the group as it allows it to avoid damaging its existing Scotch portfolio. Drambuie has a great deal of heritage and can be seen as part of the flavoured whisky category.”

Cunnington also claimed the acquisition “made sense” as both William Grant and Drambuie share the same key markets of the US and UK, while Drambuie will be given access to William Grant’s “superior distribution networks in both markets”.

Of the estimated £100 million price tag placed on Drambuie, Cunnington said while William Grant is not disclosing the full amount paid, it is “certainly going to be a high multiple” and that the group had “a large amount of cash to spend”.

Stella David, CEO of William Grant, said Drambuie was a “natural fit” in the group’s portfolio and that it will endeavour to “connect the brand with an entirely new generation of consumers”.

Drambuie has undertaken a rebranding effort in recent years in an attempt to appeal to a younger market, a move which was shown to have paid off in its “star” UK market where sales grew 17% in 2013.

However, the brand has been battling flat sales in its most important market, the US, as well as reduced stock in Asia.