Malt whisky firm's dram fine show

PROFITS at Morrison Bowmore, the distiller best known for its eponymous Islay malt, gained 7 per cent last year despite a decline in global demand for single malt whiskies.

Pre-tax profits rose to 3.8 million from 3.6m in 2008 as the Glasgow-based firm, owned by Japanese drinks major Suntory, continued to invest in its brands including a relaunch of Glen Garioch Highland Single Malt.

Morrison Bowmore chief executive Mike Keiller said last year's performance was encouraging despite the difficult economic conditions, which saw a 5 per cent decline in the global single malt market in 2009. He suggested conditions have improved in the first half of this year in spite of continued pressures on the luxury goods market.

"The first six months have got off to a very strong start with all Morrison Bowmore brands showing double digit growth, profits are strong and full-year expectations look very good," Keiller said. "In addition, the development of our sales and marketing teams has strengthened our ability to take the products to market, along with our commitment to developing world-class brands."

Despite last year's decline, the firm said it is "very optimistic" about the growth prospects of the single malt whisky market as consumers worldwide are trading up to "products of the highest quality".

The 2009 results show that turnover rose 6 per cent to 39.3m from 37.1m with sales of the distiller's Islay tipple proving particularly robust, jumping 12 per cent to 164,000 cases. Sales of Auchentoshan Lowland single malt fared less well, lifting just 2 per cent to 39,000 cases.

Meanwhile sales of Yamazaki and Hakushu, the two single malts Morrison Bowmore handles on behalf of its parent company, continued to "grow rapidly", it said.

In March last year, the distiller agreed a deal to produce and bottle Drambuie liqueur at its Springburn base, replacing the service previously provided by rival Glenmorangie.

Morrison Bowmore yesterday confirmed that the first bottles of Drambuie rolled off its production line ahead of schedule earlier this year while the five-year deal with the Drambuie Liqueur Company created a further 15 jobs at its base in north-east Glasgow.

"The production of Drambuie started early with no integration problems encountered, and the dry spring and summer has allowed rapid progress in the 5.4m renewal programme at the Springburn production facilities," Keiller said of the deal.

As part of the Drambuie arrangement, 1.1m was invested in new equipment at Spingburn while a further 400,000 was spent extending the bottling hall. Overall, the distiller is investing 5.4m over three years to completely renew the site.

Morrison Bowmore has also invested heavily in tourism initiatives over the past couple of years...