DRAM Scotland

Tennent’s contributes to 2.4% rise in C&C profits.

dramscotland — Wed, 15 May 2013 17:24:58 +0000

C&C Group, owners of Tennent’s, has said that Scotland’s biggest selling lager brand continues to impress despite a 5.9% drop in sales. This however was not replicated by a revenue drop – instead net revenue for Tennent’s rose by 6.8% to £91m. The news was revealed with the publication of the company’s annual results which showed that C&C had seen a rise in group profit of 2.4% to £96m and an 0.8% fall in net revenue.
Magners sales, however were disappointing. The brand suffered a volume decline of 15%. C&C said the cider market remained “challenging”.
The company said pricing pressure on the core cider brands was offset by a 12.7% increase in “achieved pricing for Tennent’s in the UK” this is despite a three year price freeze for its Scottish on-trade customers. The price increases came on the back of renegotiated supply contracts with supermarkets. C&C Group chief executive Stephen Glancey said “We have had an excellent contribution from the Tennent’s brand both in domestic and international markets, providing some balance to the increased competition within UK cider.” He also said that C&C’s international business saw volumes increasing by over 55% in the year. C&C said it had invested to sustain growth in its Caledonia Best beer brand in Scotland during the year with the brand now the No 2 smooth draught ale. It is also the fastest growing beer brand in the Scottish on-trade.

Ian MacLeod to distribute Spencerfield Spirit brands

dramscotland — Wed, 15 May 2013 15:35:43 +0000

Spencerfield Spirit Company has a new exclusive distribution agreement with Ian MacLeod Distillers for its brands Edinburgh Gin, Sheep Dip and Pig’s Nose Whisky.
Neil Boyd, UK Commercial Director for Ian Macleod Distillers comments, “We are delighted to add Spencerfield products to the Ian MacLeod portfolio, these brands are complementary to our existing portfolio.”
He continued, “The premium gin market is buoyant and we see major opportunities for Edinburgh Gin throughout the UK. In addition, Sheep Dip and Pigs Nose whisky will provide a quirky alternative to our existing brands and play well with those looking for products with an additional point of difference”.
Commenting on the new partnership, which brings together two Scottish-based independent family firms, Alex Nicol, founder of Spencerfield Spirit Company added, “Whilst we enjoy strong distribution in important export markets and picked up Scotland Food and Drink’s award for best Exporter in 2012, we need to grow our brands in the UK with a particular focus on the South and into London. The expertise, market knowledge and national sales presence that Ian Macleod Distillers brings will help deliver real growth for our brands.”

Walsh steps down as Diageo boss

dramscotland — Tue, 07 May 2013 14:28:27 +0000

Diageo boss, Paul Walsh, is handing over the reigns of the business to Chief Operating Officer, Ivan Menezes, who will replace Paul Walsh as Chief Executive of Diageo from 1st July. Walsh, who will step down from the Board at the September 2013 Annual General Meeting, will retire from the company on 30 June 2014.
The news was not unexpected. Dr Franz B. Humer, Chairman of Diageo said, “Paul is an outstanding Chief Executive. He has served our business, its shareholders, employees and partners with enormous imagination and dedication over the past 13 years. I know he is justly proud of Diageo and its people and he leaves a great legacy for his successor. The Board is immensely grateful for his ambitious and thoughtful stewardship of the business and its people. The transition process which has been put in place enables Paul to contribute his knowledge and experience during Ivan’s first year as Chief Executive Officer.
We are delighted to have a leader of Ivan’s talents and global experience to succeed Paul. The handover is being made at a time when the business is strong and Ivan takes on the role of CEO at an exciting stage of the company’s global development. The Board is confident that Ivan will inspire our organisation and Diageo will continue to achieve our medium-term performance objectives.”
Walsh, 57, joined Diageo in 1997 and became CEO of Diageo in 2000. He is credited with transforming the company from a food and drinks business to a company that focussed on its core premium drinks brands. And during his tenure Diageo’s share price has trebled. Walsh is expected to take on the role of Chairman at Unilever when he leaves Diageo, a company that he is currently a non-executive director of.

Scottish Government wins first round in battle to bring in minimum pricing

dramscotland — Fri, 03 May 2013 12:21:57 +0000

The Scottish Government moved a step closer to implementing a minimum price for alcohol today following a ruling by the Court of Session in Edinburgh who said it was not illegal for the government to introduce a minimum price for alcohol per unit. The Scotch Whisky Association (SWA) had legally challenged the government plans believing the proposal to bring in a minimum price per unit of alcohol would breach European law. They have now said they will appeal the decision.
Lord Doherty said the minimum alcohol pricing policy was within the powers of Scottish ministers and not incompatible with EU law. A summary of his decision states, “The court ruled that the Acts of Union were not an impediment to the minimum pricing measures.
“The court also decided that the measures were not incompatible with EU law.”
However it still looks unlikely that a minimum price thought to be 50 p per unit, will be introduced this year. The Scotch Whisky Association and its supporters, who represent European drinks producers, have already suggested that they will appeal Lord Doherty’s judgment to the Inner House of the Court of Session in Edinburgh. While Ministers have made it clear that they will not introduce the policy until all Scottish court proceedings are over. Even if the appeal is dismissed a further appeal could be lodged with the Supreme Court in London, and should the Supreme Court reject the challenge, there’s is the chance of a hearing at the European Court of Justice in Luxembourg.
This battle is far from over.

Fred Laing takes control at Douglas Laing & Co

dramscotland — Wed, 01 May 2013 12:38:08 +0000

Fred Laing has taken total control of Douglas Laing & Co, the independent whisky blender and bottler, and the business his father Fred Douglas Laing established in 1948. The news follows the decision by Fred and brother Stewart, who have run the company for the past 40 years, to go their separate ways.
The assets of Douglas Laing & Co have been split between the two brothers. Stock, brands and other functions of the business have been divided, giving both brothers equal value. Stewart retains Old Malt Cask, the Old & Rare Selection, Douglas (of Drumlanrig) range of Single Malts, Douglas Blend, House Of Peers, Sovereign Single Grain and John Player Special blend as well as the bottling facility in East Kilbride and the name of his company is Hunter Laing & Co. Fred will continue to head up Douglas Laing & Co, while Stewart has launched a new company, Hunter Laing & Co.
Douglas Laing, under Fred, will continue to offer their Single Cask Provenance range, Director’s Cut, Double Barrel, Premier Barrel, Clan Denny Malts and Grains, Epicurean Blend, the King Of Scots range, McGibbon’s and Big Peat.
In a joint statement, the brothers said, “The Scotch whisky industry is in great shape at the moment and this presents each of us with the perfect opportunity to diversify and explore different projects with the next generation of our families.
“As drinkers around the world expand their whisky repertoire and seek out new flavours, the opportunities for niche players will flourish. Our commitment is to creating a solid business for the next generation of our families and the business structures now in place allow us to capitalise on the opportunities the market place provides for their long-term benefit.”
Fred will continue to hand-select all of Douglas Laing’s casks as well as writing the tasting notes in conjunction with Malt Ambassador, Jan Beckers. Fred has also retained other key members of the original Douglas Laing team, including Finance Director Alick Bisset plus Head of Logistics Archie Hamilton and Head of Production Stephen Gardiner who cumulatively bring more than 50 years experience with the company. The 12 strong Douglas Laing team will be expanded on in the coming months with several senior new appointments.
The first of which has already been revealed, Fred’s daughter, Cara, has joined the company as Head of Brand Marketing. She was formerly at Morrison Bowmore Distillers where she led both Bowmore and Glen Garioch Single Malts as Marketing Manager, to take up this role. Specialising in brand strategy and innovation, Cara was previously Global Brand Manager of Jura and also worked on Dalmore Single Malt at Whyte and Mackay.
The two now plan to develop fresh, innovative, new brands for Douglas Laing. The first of these new brands – a premium Single Cask range – for the company is expected to be unveiled in September. Most recently Fred created and launched the Big Peat brand; a modern, quirky Islay malt with a big personality that continues to grow YOY, out-performing the Malt category. It has also won numerous awards, most recently stealing the show at the ISW International Spirits Awards 2013, to win ‘Grand Gold’.

Deuchars renews Edinburgh Fringe sponsorship

dramscotland — Wed, 24 Apr 2013 09:25:40 +0000

Heineken has renewed its headline Deuchars sponsorship of the Edinburgh Festival Fringe.

Under the three-year deal, the company will sponsor signs at more than 250 venues, as well as Deuchars being the ale of the Fringe.

Deuchars IPA launched in 1991, and the brand began sponsoring the Fringe in 2010.

Albert Roux calls for Scotland’s tourism businesses to stay open all year

dramscotland — Fri, 19 Apr 2013 12:25:46 +0000

Chef Albert Roux OBE received a standing ovation when he received a Lifetime Achievement Award at the Scottish Hospitality Industry Trust’s (HIT) annual dinner last night at the Hilton Hotel, Glasgow. After accepting the award he spoke of his love for Scotland but suggested that Scotland’s tourism industry was missing out due to the fact it did not stay open for business all year. He said that tourists would come all year if Scotland’s tourism businesses stayed open and that it was a missed opportunity. His sentiments were shared by the assembled guests who applauded his remarks.

The dinner, which was attended by the who’s who of the hospitality industry, raised around £60K for the charity.

At the same event Stephen Carter OBE stepped down as Chair of HIT Scotland, after 12 years in the post, and handed over his Chairmanship to Paddy Crerar of Crerar Hotels.

Wells & Young’s builds on the future of Scottish ale with the launch of McEwan’s Red

dramscotland — Wed, 17 Apr 2013 12:50:42 +0000

The UK’s largest independent family-owned brewer Wells & Young’s is investing behind its famous Scottish ale brand McEwan’s with the launch of McEwan’s Red.

Brewed in Edinburgh at an ABV of 3.6% McEwan’s Red is a new Scottish beer that’s a little bit different. A smooth and refreshing pint – it’s brewed to be red in colour which is achieved naturally by brewing with only the finest malted barley. It delivers a lightly hoppy and very smooth taste delivering a depth of flavour that is still sessionable.

McEwan’s Red represents the start of a sustained campaign of brand investment from the Bedford-based brewer. The aim is to refresh McEwan’s current portfolio to appeal to its loyal consumer base while also introducing new variants to the range which attract a younger target market to help rejuvenate the declining ale category.

McEwan’s Red has been thoroughly researched* and appeals to men aged 30-50 who are regular sociable drinkers and who visit the pub two to three times a week. The overall appearance of McEwan’s was rated higher than competitors and drinkers responded well to Red’s noticeably differentiated appeal.

Red is guaranteed superb profile within outlets across the country underpinned by a stunning modern chrome fount with illuminated badge and full range of POS. A TV and print campaign to support the brand is being produced in Scotland by The Union, one of the country’s top creative agencies which positions Red as aspirational and confident. The commercial follows the red-carpet journeys of consumers as they make their way towards a McEwan’s Red. It is positive, upbeat, modern and high energy, reflecting the new outlook for McEwan’s.

Two types of malt are used to make McEwan’s Red; malted barley and coloured malt. Malted barley is the vast majority of the malt used and this is sourced from Borders farms. Its colour is achieved in a 100% natural way without the use of artificial agents. The malt barley is quenched in the roasting process to a critical point to create McEwan’s Red’s perfect chestnut red hue.

Wells & Young’s aquired McEwan’s and Younger’s in 2011, securing its position as the UK’s second largest premium ale supplier and the only regional brewer to have a national footprint with local premium ales.

Paul Wells, Chairman of Charles Wells, the parent company of Wells & Youngs, commented:

“Wells & Young’s is a natural home for the McEwan’s brand. As an independent, family owned business we understand how to cultivate the much-loved brands which licensees need and consumers seek out. McEwan’s is embedded into the culture of Scotland and we intend to satisfy the consumers who already love the brand with new variants while also introducing it to a new generation of ale drinkers. Red is the right brand at the right time to kickstart this process. The category is crying out for a new product which is genuinely different. Given its brewing heritage there is no stronger brand in Scotland to deliver this change than McEwan’s.”

New National Minimum Wage rate of £6.31

dramscotland — Mon, 15 Apr 2013 12:24:25 +0000

The adult national minimum wage will go up by 12p an hour from 1 October ?with the rate for 18-20 year olds increasing by 5p to £5.03 an hour. The rate for 16-17 year olds will increase by 4p to £3.72 an hour.

Burn Stewart Distillers sold for £160 million

dramscotland — Mon, 15 Apr 2013 12:02:01 +0000

Burn Stewart Distillers has been sold for $244m (£160m) to South African drinks company Distell Group, who acquired 100% of the share capital of Burn Stewart from sellers CL World Brands Ltd and Angostura Ltd in a deal brokered by DLA Piper Scotland.

Distell is one of Africa’s leading producers and marketers of spirits, fine wines and ciders, and has been representing Burn Stewart in South Africa since 2007, when the pair signed a joint venture agreement. The equal partnership allowed Distell to market three of Burn Stewart’s whiskies in South Africa and Africa: Scottish Leader, Bunnahabhain Islay Single Malt, and Black Bottle Blended Scotch Whisky.

Merwe Botha, Financial Director of Distell Group, said, “Our acquisition of Burn Stewart is a very significant development for Distell from a strategic perspective but also given the rich and proud history and heritage of the brands involved. It gives us an outstanding foundation from which to build, while cherishing their individual traditions.

“The solid synergies that the two entities have built over time and which are backed by strong marketing and production teams, strengthen our position in this competitive global Scotch Whisky market.”

Scotch Whisky has become increasingly popular in both Africa and South Africa, thanks to greater global travel from these countries and a growing appreciation for the product.

Burn Stewart’s blended whisky brands include Scottish Leader and Black Bottle, with the Single Malts portfolio consisting of Bunnahabhain, Tobermory, Deanston and Ledaig. The company also owns and operates three whisky distilleries: Bunnahabhain (Islay), Tobermory (Mull) and Deanston (Doune, near Stirling).

Paul Pignatelli, a partner in DLA Piper’s Corporate team, said: “This is a major deal in the dynamic Scottish whisky sector which is currently enjoying booming sales at home and abroad. Burn Stewart is behind some of the best known and loved whisky brands in Scotland, representing a world class asset for our clients the Distell Group to acquire.

Burn Stewart Distillers employs close to 270 staff located at its global sites. It has a blending and maturation facility at Airdrie and a bottling hall and finished goods storage site at East Kilbride. The company also operates a sales and marketing branch in Taiwan.

Distell employs nearly 5,000 people and has an annual turnover in excess of R12.3 billion. It produces premium brandies, cognacs, white spirits, whiskies and liqueurs including Amarula.

Meanwhile there has been no news yet with regard to the sale of Loch Lomond Distillery. It has been rumoured that Exponent, a private equity firm behind the likes of Radley’s, HSS Hire Service, thetrainline.com, Quorn and the Ambassador Theatre Group is set to buy the distillery in a deal worth tens of millions.