EDRINGTON has moved to tap into the rapidly growing US whiskey market by striking a strategic alliance with a Wyoming-based bourbon distiller.
The Glasgow-based whisky giant has taken a minority stake in Wyoming Whiskey in a deal which expands its portfolio of premium spirits across the Atlantic.
The bourbon joins the Edrington Americas distribution portfolio, where it will be marketed alongside brands such as The Macallan, Highland Park, The Glenrothes, The Famous Grouse, Cutty Sark, Brugal rum, Snow Leopard vodka and Tequila Partida. The initial sales focus for Wyoming Whiskey will be on major US cities, before the brand is introduced Mexico, Canada and around Latin America.
The move comes as the US whiskey market enjoys a period of phenomenal growth. Figures provided by Edrington suggest the spirit grew at a rate of 25 per cent year on year, globally, in the five years between 2013 and 2017.
And it follows a similar alliance Edrington formed with Tequila Patrida in 2016, under which the Scotch whisky distiller distributes the brand across the Americas region. Tequila is the biggest spirits category by value in the US, with the US the world’s biggest market for premium spirits.
Wyoming Whiskey was founded in the Rocky Mountain West by fourth generation cattle farmers Brad and Kate Mead, who run the distillery in Kirby, Wyoming, with their son Sam. They will continue to produce their whiskey in Kirby further to the Edrington deal, using Wyoming grains and water from the mile-deep limestone aquifer.
Edrington chief executive Ian Curle said: “We’re pleased to be partnering with the Mead family to bring Wyoming Whiskey into the Edrington portfolio. This deal is a further step towards becoming the world’s leading premium spirits company and adds to a brilliant year in which we opened our award-winning distillery and brand home for The Macallan.”
Brad Mead, president of Wyoming Whiskey, said: “I’ve long admired Edrington’s portfolio and its ethos of giving more. To see Wyoming Whiskey alongside The Macallan, Highland Park, and the entire line-up at Edrington Americas’ headquarters in New York is just fantastic, but I know we’ve earned it.
“With Edrington, Wyoming Whiskey will be offered opportunities that we could not have achieved on our own.
“This partnership will allow our brand to grow without the practical limitations that we faced as a standalone distiller. It’s an exciting time for us.”
The most recent results for Edrington show that it increased pre-tax profits by three per cent to £194.7 million in the year to March 31. The distiller reported that “core” revenue – sales of branded products adjusted for the impact of foreign currency movements – had climbed by 7% to £706.7m, with the UK, Nordics and the US its leading markets over the period.
At the time it reported the accounts in June, Edrington, which opened its new £140m distillery for The Macallan in May, revealed that it had put its Cutty Sark blend and Glenturret whisky operation in Perthshire up for sale.
A spokesman said yesterday that moves to sell the whiskies were “progressing well”. Investment bank Nomura has been appointed to handle the sale of the brands.
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