Blog: Whyte & Mackay - how much is enough?
Olly Wehring | 22 August 2006
It’s a maxim in business that everything has a price - and that truism could soon be tested at UK distiller Whyte & Mackay.
The company has started attracting interest from potential suitors after enjoying the first positive results of a turnaround in strategy over the last three years.
Whyte & Mackay has embarked on a series of cost-cutting measures and invested heavily in its brand portfolio, including its namesake Scotch whisky brand and Vladivar vodka. The moves underpin the company’s desire for a change in direction - away from low margin, private-label Scotch towards more premium brands.
Growing sales of the company’s branded whiskies are a sign that the hard work is beginning to pay off. However, that success has made Whyte & Mackay an attractive asset - and reportedly at the front of the queue is Indian billionaire Dr Vijay Mallya, the head of spirits giant UB Group.
Whyte & Mackay decided to keep its Invergordon Distillers business after witnessing a revival in the price of own-label whisky and has admitted that it has received “a number of approaches” for parts of the business.
Should those approaches turn into concrete offers, how long will the company’s largest shareholder, South African business tycoon Vivian Imerman, rebuff any advances? Whyte & Mackay’s focus on premium brands is a sensible move but it may only be a short-term fix. Healthy returns on upmarket whiskies like Isle of Jura are constrained by a distilling process that can take a decade.
Imerman is known to want to build the Whyte & Mackay business but his commitment to the company would be tested if Dr Mallya - known as India’s answer to Richard Branson - gave him an offer he couldn’t refuse.
To support the release of its latest report, entitled ‘The Economic Impact of Scotch Whisky Production in the UK’, trade body The Scotch Whisky Association has released this video, highlighting the si...
The Coca-Cola Co is in the middle of a major restructuring plan, affecting jobs around the world. The company is also downsizing its packaging....
One, perhaps minor, consequence of the conflict in Ukraine appears to be a fall in sales of Russian vodka in the country....
Diageo has jumped onboard Google's latest interactive maps and is opening up the virtual doors to four of its distilleries. ...
- Comment - Diageo Steps Up Defence of Haig Club
- Focus - Diageo's H1 Results by Region, Brand
- Comment - Spirits - Where Next for Scotch Whisky?
- just the Preview - Diageo Q2 & H1
- just the Facts - Top 20 US Beers by Value, Volume
- Belvedere vodka tie-up over new James Bond film
- Diageo speaks out over supplier contract changes
- Brown-Forman appoints Jack Daniel's president
- ASA rejects Haig Club ad complaints
- Carlsberg freezes Russia salaries, new hires
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Edrington Group in Spirits (World)
- Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages
- Global vodka insights - market forecasts, product innovation and consumer trends research