Edrington profits plummet as drinkers turn away from spirits
The Scotch whisky distiller will focus on ultra-premium products as it navigates a volatile global market.
Edrington, the producer behind brands like The Macallan and Highland Park, has reported a double-digit drop in sales and profits, with consumer demand for spirits drying up.
Core revenue slumped by 10% to £912m in the financial year to March 31 2025, according to the producer’s annual report.
The decline in sales was broadly consistent across international markets, with exceptions including a strong performance by Brugal rum in the Dominican Republic and The Macallan in South Korea in Japan.
The Macallan 12, 15 and 18-year-old expressions also saw growth in China.
Tough times for spirits
But core contribution fell sharply by 28% to £291.4m, hit by rising production and employment costs.
Edrington chief executive Scott McCroskie said the business had felt the “full effect of the global economic downturn” this year, after several years of unprecedented growth for premium spirits.
“Our focus on ultra-premium spirits has driven Edrington’s growth in recent years and we have continued to execute our strategy despite the hostile trading environment,” he said.
“This includes further strategic investments in our Sherry cask supply chain and in reducing our carbon footprint.”
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The Glasgow-based company cut brand investment by 9% to match falling revenues, though it maintained a strong reinvestment ratio of 24% of core revenue.
Passing of the baton
On 1 July, Edrington sold The Famous Grouse and Naked Malt brands to William Grant & Sons.
At the time, Søren Hagh, chief executive officer at William Grant & Sons, said he was “delighted” to complete the acquisition, and hoped to evolve the brand into a “true global icon”.
McCroskie said the company had made the sale to focus on the growth opportunities in the premium end of the market, with The Macallan its key focus.
Last year, the single malt whisky brand celebrated its 200th anniversary, with 2024 marking its second-highest year ever for sales.
Grappling with uncertainty
McCroskie continued: “Looking ahead, the political and economic backdrop remains volatile, which we expect will continue to weigh on consumer sentiment in the coming year.
“We believe top-line growth will be difficult to come by in this environment, although adjustments to overheads and brand investment are expected to align net sales and core contribution more closely next year.
“Edrington’s strategic focus on ultra-premium spirits remains effective.
“We will continue to execute it to strengthen our brands and our business for the long-term benefit of our investors, our employees, and those who benefit from our own and our principal shareholder’s charitable activities.”
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