Whisky firm waits for merger fallout
Friday 23 May 1997
The company said it did not underestimate how much the merger could change the dynamics of the whisky market. But there would be opportunities in the short term for small and nimble operators to take advantage of the inevitable period of disruption during the integration of the two companies. Earlier this year Glenmorangie paid pounds 7m for Allied Domecq's mothballed Ardbeg distillery in Islay, which it now reckons is valued at pounds 8.9m.
The profits rise from pounds 6.57m to pounds 7.8m in the year to March came on the back of its whisky sales growing at around double the rate of the market. The company said its volumes jumped by 20 per cent last year compared with a 10 per cent rise in worldwide demand for malt.
The three "wood finishes" launched last year - Glenmorangie part-matured in port, sherry and madeira casks - had grown to around 10 per cent of the malt's overall sales of around 200,000 cases, the company said. The new tastes were introduced to tempt new drinkers, particularly women and younger age groups. Peter Darbyshire, managing director, said Glenmorangie was now the fastest-growing spirit in America after Hennessy Cognac, with growth of 40 per cent against 25 per cent for the market.
He said younger, more affluent drinkers were "leapfrogging" whisky blends and moving straight on to malts.
The figures were broadly in line with expectations. Alan Gray of Edinburgh brokers Sutherlands said the company had done remarkably well in the face of weak pricing in the market. He said the 45 per cent increase in sales of bottled whisky and 22 per cent reduction in bulk sale to blenders and other bottlers showed that the quality of earnings was improving. However, a pounds 617,000 loss from associates in India and China was higher than he had expected. Further big losses and the company was likely to consider winding up the Indian operation, he suggested.
Glenmorangie's pounds 320,000 charge for the Indian joint venture writes off the investment, taking total losses to pounds 800,000 over the past three years.
Shares in the family-controlled company, known until last year as Macdonald Martin Distilleries, remained unmoved by the figures, with the limited voting A shares at 945p and the B shares at pounds 10.65.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...