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Write-down of Brugal rum value puts dent in Edrington figures

Published:  30 June, 2015

Famous Grouse producer Edrington has written down the value of its Brugal rum brand to reflect revised future expectations of the brand's performance.

The write-down led to the company - whose brands also include Macallan and Highland Park - recording a £52.7 million pre-tax loss for the year to March 31.

Earnings before interest, tax and the exceptional cost relating to Brugal were £181.1 million, which Edrington said reflected a strong performance in whisky but a "subdued" contribution from Brugal, particularly in Spain and the Dominican Republic.

Chief executive Ian Curle said: "Edrington enjoyed a good year in which we saw the benefits of controlling our distribution in the key spirits markets of the US and South East Asia and continued strong demand for our premium spirits.

"Our whisky portfolio performed ahead of the market and this shows the strength of our brands, which are well placed to benefit further from continuing trends towards premium spirits.

"Edrington's focus in the coming years will be on this increasingly important premium end of the market and we continue to invest to support our growth objectives and our long-term prospects.

"Our strategy of investing for the long-term is evidenced by our expansion in the travel retail market and the on-going work to transform The Macallan estate, where work on the new distillery and visitor centre remains on track for completion in Spring 2017."