The company behind whisky brands Famous Grouse, Macallan and Highland Park is to spend up to £15 million expanding its international distribution network in a “step-change” for the business.
Trust-owned Edrington Group said it was set to establish new sales, marketing and distribution outfits in buoyant markets in the USA, South-East Asia and the Middle East.
The firm said growing its network, and taking control of operations spanning three continents, would allow it to exploit some of the world’s “largest and most dynamic” markets for spirits. Currently exports to the three areas account for 26% of group sales.
Edrington which employs around 100 people in commercial, finance and sales teams at West Kinfauns, and a further 25 at the Glenturret distillery and Famous Grouse Experience by Crieff said strengthening its route to market demonstrated its confidence in the continued growth potential of its spirits brands.
“Today’s announcement marks a step change in Edrington’s business,” chief executive Ian Curle said.
“Worldwide demand for premium and super-premium spirits continues to grow and, by expanding our distribution capabilities so significantly, we are seizing the opportunity to increase investment in our brands and reach even more consumers who are showing a growing appreciation of premium spirits.”
A new US arm will open offices in Chicago, LA, Dallas and Miami, while extending its presence in New York.
Edrington’s American distribution deal with Rmy Cointreau ends in March.
The group says it sees particular potential for the Macallan and Brugal Extra Dry rum brands in a market where demand for premium malt whisky is growing by 16% per year.
A new joint venture with FIX Wines & Spirits will distribute to markets in the Middle East, Gulf and North Africa, focusing on international city destinations and the travel trade.
Meanwhile, a new Singapore-based division will manage the brands in South-East Asia, where Macallan is already the leading premium malt whisky brand.
The expansion of the group’s distribution model is estimated to cost between £10m and £15m, and follows the creation of Edrington South Africa to target sub-Saharan markets last year.
Edrington, which in November revealed a 6% rise in turnover and 21% hike in pre-tax profits during the first six months of the period, is expected to release its results for the year to the end of early March next month.
Mr Curle said Edrington was “keeping up the momentum”.
Edrington is owned by the Robertson Trust, which donated more than £15m to a string of charitable causes last year.