The Macallan owner Edrington has announced it is selling The Famous Grouse and Naked Malt Scotch whisky brands to William Grant & Sons, declaring it is the “right moment” for it to exit the blended category.

The deal, which is a major one in the Scotch whisky sector, is subject to “customary regulatory approvals, including from the UK’s Competition and Markets Authority”, Glasgow-based Edrington noted, describing The Famous Grouse as a “well-loved” brand.

It highlighted its belief that the two blended Scotch whisky brands being sold are "well-positioned to continue to succeed" under the ownership of William Grant & Sons.

The price being paid by the family-owned William Grant & Sons was not disclosed.

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Scott McCroskie, chief executive of Edrington, said: “This decision is driven by our strategy to focus on our core strengths and the growth opportunities in the ultra-premium spirits category. We consider this the right moment for Edrington to exit the blended Scotch category and focus on our core portfolio of ultra-premium spirit brands.

“The Famous Grouse is a well-loved brand that has consistently performed in its category during the time it has been part of Edrington, and Naked Malt has grown its reputation. I am confident that these brands are well-positioned to continue to succeed as part of the William Grant & Sons portfolio.”

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Edrington said the deal, through its subsidiary The 1887 Company Limited, “marks the next stage of the company’s mission to be the world’s best at crafting exceptional ultra-premium spirit brands”.

William Grant & Sons was a key backer of Edrington’s takeover of Highland Distillers in 1999.

At the time, Highland, which had taken over The Macallan and was in a joint venture with Edrington on The Famous Grouse, was listed on the London Stock Exchange.

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William Grant & Sons declared: “Founded in 1896 in Perthshire, The Famous Grouse is a quality blended whisky and much-loved brand that would add to William Grant & Sons’ award-winning portfolio of renowned whiskies and spirits.”

It added: “Having been around for over 125 years, The Famous Grouse has a rich history and would be a significant addition to our portfolio. The brand has potential for innovation and international growth in a number of markets, and we’re excited about what the future holds.”

Edrington describes The Macallan as its “central focus”, supported by Highland Park and The Glenrothes "in the fast-growing single malt category".

It employs more than 3,300 people in its wholly owned and joint venture companies, with in excess of half of these staff based outside the UK

Edrington’s principal shareholder is The Robertson Trust, which has donated £367 million to charitable causes in Scotland since 1961.

In July, Edrington unveiled a 6% rise in underlying annual pre-tax profits to £411m as core revenues jumped 11% to £1.165 billion.

At that stage, Mr McCroskie voiced his belief that Edrington’s results for the 12 months to March 31 were “among the best in the spirits industry”. However, mulling the outlook, he highlighted his expectations that demand would be adversely affected by economic pressures seen in the second half of the financial year to March 2024.

Mr McCroskie declared then that the “post-Covid spirits boom” had come to “an abrupt end” during the year to March 31.

He revealed that Edrington was consequently planning for lower levels of growth than those seen since the end of the coronavirus pandemic.