The whisky industry is abuzz as The Famous Grouse, a renowned brand previously owned by Edrington's 1887 Company, has been sold to William Grant & Sons, one of the º£½ÇÊÓƵ's wealthiest entities.
This transaction, which took place in September last year for an undisclosed amount, is now under the scrutiny of the Competition and Markets Authority (CMA), as reported by .
Scottish billionaire Glenn Gordon, who owns William Grant & Sons, has thus expanded his portfolio, which already boasts esteemed whisky names like The Balvenie and Glenfiddich, as well as Hendrick’s gin.
The acquisition also included the Naked Malt brand, while Edrington retains ownership of Macallan, Highland Park, and Glenrothes.
In a statement from September 2024, Edrington chief executive Scott McCroskie explained the rationale behind the sale: "This decision is driven by our strategy to focus on our core strengths and the growth opportunities in the ultra-premium spirits category."
He added, "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."
McCroskie praised The Famous Grouse for its consistent performance and expressed confidence in its continued success within the William Grant & Sons collection, saying, "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."
A spokesperson for William Grant & Sons also commented on the acquisition, stating, "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."
This comes as sales success graces the new owner of The Famous Grouse. According to a City AM report from October last year, sales have rocketed to just shy of £2bn, with profits crossing the £500m threshold during 2023.
William Grant & Sons recorded a substantial increase in turnover, reaching £1.96bn for the latest financial year up from the previous £1.72bn in 2022. The figures filed with Companies House also reveal a significant leap in pre-tax profit from £397.5m to £554m over the same term.
The esteemed portfolio of William Grant & Sons includes brands like Glenfiddich and Hendricks gin, alongside Monkey Shoulder, Sailor Jerry and Drambuie. For the year ending on 31 March, 2024, Edrington reported revenues ascending to £1.33bn from £1.27bn, while its pre-tax profit modestly climbed from £405.1m to £406.9m.
In the interim, the CMA has slated a decision on whether to escalate the ongoing probe into a formal investigation for 27 March, calling for comments from interested parties by 12 February.
This inquiry emerges as the fresh chair of the competition authority commits to expedite decision-making processes and enhance the agency's expertise, amidst a backdrop of sustained critique.
Doug Gurr, an ex-Amazon executive who recently took the helm following the ousting of his predecessor by ministers, has voiced concerns that "lengthy and uncertain investigations" are impeding businesses and incurring unwarranted expenses.
