Drambuie announces annual results

Drambuie has reported operating profits of £2.81m – up 2% on last year.

The company said sales volumes grew across all regions except southern Europe where the financial crisis in Greece led to a 56% decline in shipments. Greece is Drambuie’s third largest market.

The company statement continued: “In Greece, total spirits consumption contracted by approximately 30%, compounded by aggressive trade destocking, and leading to a shipments decline of 56%. Trading in Greece has improved over the past four months with depletions growth of 33% for the period.”

Globally, Drambuie case volumes rose for a second successive year - by 1%.

The highlight of the trading performance was a 4% growth in shipments to the US, which Drambuie calls its “most important market”, and one which had been in decline until recently. A new long-term distribution agreement was negotiated with Bacardi USA, and as part of this agreement, Drambuie took over the funding of all brand investment, providing greater control over trade and consumer spend.

Sales in northern and eastern Europe rose by 13% and Latin America by 18%, whilst sales in the UK were level with last year.

Following its launch at the Tax Free World Exhibition in Cannes in October last year, Drambuie 15 was responsible for over 12% of total Drambuie sales, with distribution now being extended to a “number of other key airports”. Drambuie 15 has recently been launched into the UK and USA domestic markets.

An ultra-premium version of Drambuie is also to be launched as part of the new product development strategy. The Jacobite Collection – The Spirit of ’45 is said to be “the most rare and valuable addition to the Drambuie range”.

Chief executive Michael Kennedy said: “This has been another important year for Drambuie in terms of attracting a new generation of consumers. The foundations have been set and, subject to global turmoil not disrupting our key markets, we believe further progress will be made in 2011-12.”

The results are to year ending June 30, 2011.