Tuesday, July 14, 2015
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.
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.