News

UK: Losses at Drambuie spark takeover talk

Most popular

Pernod is buying Malfy for the flavour - comment

The just-drinks Analyst returns

Is Carlsberg treating consumers like suckers

The just-drinks Analyst returns

Why spirits marketers must be more careful

MORE
The privately owned liqueur producer, Drambuie, has posted record losses for the year to the end of June 2001. According to its recently filed accounts, the Edinburgh-based company recorded pre-tax losses of £3.3m (€5.2m) for the year to the end of June, against a profit of £443,000 in the previous year. Turnover rose marginally to £30m.

More than two-thirds of the loss was the result of a one-off restructuring charge following the transfer of its vatting, blending and bottling operations to Glenmorangie's facility at Broxburn, West Lothian. The costs included £1.1m in redundancy payments. Two of the company's directors resigned during the year. Drambuie said last year that its joint venture with Glenmorangie would save it £1m by the end of the third year in operation and a company spokesman confirmed to Just-drinks that it remained on track to achieve that objective. In 2001, Drambuie's group borrowings totalled £26m.

However, even without the exceptional charges, the company has seen its annual profits declining from a peak of £3m in the mid-90s. The company registered an operating loss of £118,000 last year, against an operating profit of £186,000 in 2000.

However, the MacKinnon family which owns the company and maintains its publicity-shy approach to business, is thought to be as determined as ever to retain control. However, there is now increasing speculation that Drambuie may be the subject of a takeover bid. Some observers have even suggested that the joint venture with Glenmorangie, unveiled in April 2001, could lead to an outright takeover of the liqueur producer.


Companies: LVMH Group

Related Content

Comment - Spirits - Drambuie For Sale

Comment - Spirits - Drambuie For Sale...

Editor's Viewpoint - William Grant & Sons' Move for Drambuie: It Had to be You

Editor's Viewpoint - William Grant & Sons' Move for Drambuie: It Had to be You...

Big Rock Brewery attacks craft beer tax change as H1 2017 losses grow - results

Big Rock Brewery attacks craft beer tax change as H1 2017 losses grow - results...

"If there's one rum brand that can legitimately play in the super-premium segment, it's Mount Gay" -...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?