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Edrington, a UK-based spirits company, has achieved remarkable growth, surpassing £1 billion (approximately US$1.26 billion) in core revenue for the first time in the fiscal year ending on March 31, 2023. This achievement represents a substantial 22% increase compared to its full-year results for 2021-2022.
The company's success is largely attributed to its flagship brand, The Macallan, which experienced high demand for its premium products, including The Macallan James Bond Collection, The Red Collection 77-year-old, and The Macallan M series. Edrington's core contribution rose by an impressive 25% during the fiscal year, reaching £413.6 million (about US$523 million).
Scott McCroskie, the Chief Executive of Edrington, expressed his satisfaction with the company's performance, stating, "Our business has delivered another highly successful year, despite a range of external challenges. Revenue from our spirits brands passed £1bn for the first time, and core contribution increased by 25% from last year’s record result."
Edrington utilised its strong trading performance to invest substantial sums in its brands, people, and operations. The company also conducted a significant share buyback. The positive momentum extended to almost every country where Edrington's products are sold, with particularly robust sales in China, Hong Kong, Taiwan, the UK, Spain, the Dominican Republic, and the USA.
In addition to The Macallan, other brands under Edrington's umbrella, such as The Glenrothes, Highland Park, and Naked Malt, performed well in key markets. The Famous Grouse whisky saw a good recovery in global travel retail and performed well in core markets in Northern and Eastern Europe. Brugal, Edrington's premium rum brand, experienced outstanding growth in the Dominican Republic and Spain, with its ultra-premium expression, Brugal 1888, continuing to perform strongly.
Edrington made strategic moves to further its growth and market presence. In March 2023, The Macallan acquired a 50% stake in Spanish producer Grupo Estévez, securing an exclusive supply of its Sherry casks. Furthermore, Edrington became the majority shareholder in Wyoming Whiskey, increasing its stake to 80% in April.
The company demonstrated its commitment to its brands and future sustainability; investments in brand growth for FY2022/23 increased by 28%, totalling £232.5 million (approximately US$294 million). Additionally, Edrington launched its Stillhouse podcast and successfully met its carbon reduction targets in line with its goal of achieving net-zero emissions by 2045.
Despite economic challenges, McCroskie remains optimistic about the company's future, stating, "We have healthy brands, an effective strategy, record levels of investment in the business, great people, and strong momentum. I am confident that Edrington is well-positioned to deliver sustainable success in the future."
With its outstanding performance and strategic initiatives, Edrington looks poised for continued growth and success in the spirits industry.
