In Midst Of Revamp, Profits Down At Glenmorangie

Dan Marsteller
Posted: July 26, 2010

Moët Hennessy’s Glenmorangie Co unit saw earnings slide in 2009, as it
continued its calculated move away from the blended Scotch and
third-party bottling business in favor of heavier investment and focus
on its core brands, the Glenmorangie and Ardbeg single malts. Pre-tax
profit at Glenmorangie fell from £39.3 million ($61m) in 2008 to £12.7
million ($20m) in 2009, according to figures released by the U.K.’s
Companies House.

Net sales were down substantially as well (35% to £73.1 million
($113m)), reflecting the company’s decision to exit the lower end of
the business, originally announced in 2008. That year Glenmoranie sold
off bulk whisky stocks, as well as the Glen Moray distillery (to La
Martiniquaise). Since then, tens of millions of pounds have been
invested to upgrade the Glenmorangie distillery at Tain and the Ardbeg
distillery on Islay, as well as open a new bottling plant in
Livingston. Also, later this year, Glenmorangie Co’s headquarters are
moving to Edinburgh from Broxburn as part of the overhaul.

“Increased sales, notably in Asia, continental Europe and the U.S.,
are supporting our decision to increase investment” behind the
Glenmorangie and Ardbeg brands, the group said. It also claimed that
Glenmorangie had become the fastest-growing single malt in the U.S.
market over the past year. The fifth-largest single malt in the world
by volume, Glenmorangie sells roughly 275,000 cases annually, about
15% of that in the U.S.

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