Edrington,
owner of The Macallan Scotch whisky, has been forced to write down the value of
its Brugal rum brand once again due to "extreme difficulties" in its
key markets.
Announcing
its full year financial results for 2014/15 to 31 March, Edrington said Brugal
Rum had encountered "tough economic and competitive conditions" in
Spain and the Dominican Republic, causing it to lose volume year-on-year.
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| Brugal Rums |
The
group said Brugal's forecasted growth expectation has been "revised
downwards", resulting in a write down of the value of the brand to £239
million.
"Brugal's
leading markets in the Dominican Republic and Spain were significantly affected
by the global recession," said Suzy Smith, brand director for Brugal. "Edrington has responded with a
strategy of driving brand equity in core markets to position Brugal for the
recovery, as well as building the brand in selected high-growth markets where
the company has a strong distribution capability.
"Brugal
continues to be the leading rum in the Dominican Republic and Spain, where we
now see a return to growth. Brugal is also growing in the US and Asia Pacific,
regions that are home to the world's fastest growing premium spirits
markets."
You can read more about this at http://www.thespiritsbusiness.com/2015/06/edrington-writes-down-value-of-brugal-rum/
This
marks the second year running that Edrington has revised the value of Brugal
rum, reporting another "exceptional charge" of £274.8m in its 2013/14
full-year results. Ian
Curle, CEO of Edrington, said rejuvenating the Brugal rum brand will be a
"key focus" for the group.
