UK: Glenmorangie and Drambuie form joint venture
Based at the Glenmorangie Broxburn site in West Lothian, Glenaird will handle all requirements from whisky sourcing to bottling, warehousing and logistics. Glenmorangie will also manage the new site.
Commenting on the Glenaird venture, spokesman for Drambuie Chris Lansdell told just-drinks.com: "Because the two companies are next door to each other it made a lot of sense to look at sharing a common supply chain. They are both fiercely independent family businesses and this gives them even more ability for them to remain fiercely independent family businesses.
"Distribution is not affected, neither is sales and marketing and there are no plans to look at those," he added.
Drambuie will eventually close its Kirkliston site at West Lothian, which employs around 100 staff. Lansdell said: "We don't know the implications on jobs at the moment. But while the Kirkliston site will be disposed of in due course, there will be some functions at that site that will transfer to the new site and remain under Drambuie control. There will also be new opportunities at the new site as it's an expanding facility," he said.
Operational from July this year, the new company is expected to have achieved full integration within 18 months. And the benefits of the joint venture said Glenmorangie, the number three premium malt brand in the world, will be somewhere in the region of £1m ($1.4m) in PBT (within a three year timescale).
Glenmorangie has denied any long term plans to extend the joint venture with Drambuie and in a statement said: "Glenaird will provide substantial benefits over time to Glenmorangie from the improved utilisation of the Broxburn facility and associated infrastructure, combined purchasing of both whisky and bottling materials and sharing of warehouse facilities."
Paul Neep, chief executive of Glenmorangie plc said: "We are delighted to be associated with Drambuie, a leading independent Scottish company with a strong international brand. The formation of Glenaird addresses one of our key strategic objectives - that of making best use of our assets."
He continued: "We believe this arrangement will deliver cost benefits for Glenmorangie from the financial year just commencing, allowing us to invest in further strengthening our leading malt brands."
With the acquisition of Allied Domecq, the wave of consolidation that has dominated the spirits industry for the best part of a decade may have hit an impasse. The families that control the next tier ...
The Scotch Whisky industry has launched a training initiative across the sector....
Brown-Forman Corporation has reported a 46% rise in diluted earnings from continuing operations for the first quarter of the current fiscal year....
At its AGM yesterday (28 July), chairman of Brown-Forman, Owsley Brown II, told shareholders that the company was enjoying a very strong start to the 2006 fiscal year....
Brown-Forman and LVMH Moet Hennessy Louis Vuitton have concluded the contracts through which Brown-Forman acts as the US importer of the Glenmorangie brands....
Brown-Forman has reported earnings growth of 21% for its fiscal year to 30 April....
Bacardi Limited and The Glenmorangie Company have said their UK and European distribution agreements will come to an end on 30th June 2005. Moet Hennessy, which acquired The Glenmorangie Company at th...
LVMH Moet Hennessy Louis Vuitton said today that it had seen organic sales growth of 11% in the first quarter of 2005. Consolidated sales were €3,082m for the period....
- Is Diageo approaching its "Et tu, Brute" Moment?
- Diageo Q4 & FY - Preview
- Has Diageo added Beer to its 'Non-Core' List?
- SABMiller, Carlsberg, Heineken: Poland's beer itch
- Diageo, Heineken and NBL in South Africa & Namibia
- NPD: Tomatin Contrast, Cù Bòcan
- Diageo, Heineken end South Africa, Namibia JV
- Diageo hit by SEC investigation in US
- Diageo comm's director latest to leave
- Pernod launches pomegranate whisky drink
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global cachaca insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research