UK: Drambuie profits rise as sales stay steady in FY
The Scottish company said today (2 October) that underlying operating profits from its core brand sales rose impressively in the 12 months to June, by 25% to GBP2.4m (US$4.9m). Although underlying sales volume was flat, branded turnover increased by 1%, reflecting what the company said was a strategy of protecting margin rather than looking for short-term volume.
"Our vision remains to be a highly focused, international brand marketing and distribution company, with a clear strategy, underpinned by world-class distributor management and financial processes," said Drambuie chairman, Richard Stone.
In the past 20 years, from 1987 to 2006, Drambuie has seen volumes fall by 40%, averaging almost 3% per annum. "After such a lengthy period of decline, volume stabilisation and protection of premium pricing and margins is a major achievement and represents the first significant step in the turn-around of the brand," a spokesperson for the company said.
"We are confident that we have laid solid foundations in our key markets and we expect to see modest volume growth in 2007-08."
After four years at the helm at Drambuie, Phil Parnell has led the one-brand company on a turnaround of healthy proportions. As the global recession takes hold, Olly Wehring quizzed him on the secrets...
- Brown-Forman's march on premium whisk(e)y -Comment
- Are consumers getting tired of consuming?
- Where does AB InBev see the future of beer?
- SABMiller in Cent'l & E Europe - What is for sale?
- Will US consolidation leave craft alcohol exposed?
- Brown-Forman to buy BenRiach Distillery Co
- Bacardi rolls out new global Martini ad - video
- Brown-Forman appoints new GTR marketing head
- Guinness Nigeria sees YTD sales, profits tumble
- Bacardi recruits ex-News International exec
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Emerging Drinks Industry Trends