SPEYMALT Whisky Distributors has posted a jump in sales and profits to record levels as it continues its expansion drive, on the back of success in the US, France and Taiwan, and is bullish about the outlook.
Elgin-based Speymalt, which is the parent company of Gordon & MacPhail and owns Benromach Distillery on the outskirts of Forres, yesterday reported a 26 per cent rise in underlying pre-tax profits from its main trading activities to a record £5.1 million for the year to end-February. Speymalt, which is wholly owned by the Urquhart family, achieved an 11% rise in sales from its main trading activities to a record £31.4m. Overseas sales rose by 22% to £10.9m while UK turnover increased by 6% to £20.5m.
Read More: Taiwan plots regional growth as ardour for whisky persists
These turnover and profit figures exclude bulk sales of mature single malt whisky stocks, to the value of £8m. These sales were made to “build up reserves” to finance the building of a second distillery. Including these sales, turnover increased by 39% to £39.4m, and pre-tax profit was £12.9m.
Speymalt, a Scotch whisky specialist with activities spanning distillation, wholesale and retail, unveiled plans in May for a multi-million-pound investment in a new distillery at Craggan, near Grantown-on-Spey. The company said this distillery would become a “significant local employer”. It noted the project would establish the first new malt whisky distillery to be built in Cairngorms National Park since its creation in 2003.
Read More: Scots exports follow whisky route into Taiwan
Ewen Mackintosh, managing director of Speymalt, said of the annual results: “It was a great year for us.”
He revealed the business, which is this year celebrating the 50th anniversary of Gordon & MacPhail’s Connoisseurs’ Choice range, had continued to grow in the current financial year.
Asked which markets were going particularly well for the company, Mr Mackintosh replied: “It is pleasing that we are seeing real growth in the traditional markets. America was very good for us last year. France was a very good market.
“Even markets like Taiwan - we are turning a corner there. It [Taiwan] is a very competitive market. It has always been a strong whisky market but it has been quite price-sensitive. We are able to see growth without it being in the mainstream element. We are able to compete with our premium whiskies there.”
Taiwan, a democracy of around 23 million people, has in recent years developed an international reputation for its own single malt whiskies, such as Nantou Distillery’s Omar spirit and Kavalan’s King Car Conductor and Podium products.
Read More: Ian McConnell: Taiwan's connoisseurs have long enjoyed premium whisky offering
Mr Mackintosh said: “The success of Taiwanese whiskies can only benefit Scotch as well. If it is an introduction for consumers into the whisky categories as a whole, I think we can all share in that success.”
Asked about Brexit, Mr Mackintosh replied: “We have been very consistent on our message: until we know the detail, there is not too much point focusing on it.”
Benromach Distillery attracts more than 13,000 visitors every year. In 1993, the Urquhart family acquired the then-mothballed Benromach Distillery, with Speymalt noting this purchase had seen the realisation of a “long-held ambition”. Benromach, which was built originally in 1898, reopened in 1998, after major refurbishment.
Speymalt said “focused brand-building activity” had contributed to 22% growth in sales of Benromach.
It added that Benromach 15-year-old had been named Best Speyside Single Malt at the World Whisky Awards.
Speymalt has announced plans to create additional warehousing at the Benromach site to accommodate the increased demand. The company launched Red Door Gin, distilled at the Benromach site, this summer.
Speymalt said its Gordon & MacPhail whiskies had performed well with a 14% sales rise. It flagged continued investment in buying new and seasoned sherry casks and fillings from distilleries around Scotland.
Mr Mackintosh highlighted the strength of the company’s wholesale business in the UK in the last financial year.
Stephen Rankin, a fourth-generation Urquhart family member working in the business, flagged Speymalt’s long-term investment focus.
He said: “It is all about…following the philosophy of the forefathers of the company. It is all about investment for the future.”
Contemplating the outlook, he said: “We are really buoyed by last year’s performance. We think there [are] a lot of opportunities and we are really excited about the future.”
Mr Rankin noted Speymalt’s workforce had risen to 158, from less than 120 about a decade ago.
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