SCOTTISH DRINKS group William Grant Sons yesterday completed a €300 million takeover of CC’s Irish spirits brands.
William Grant’s chief executive Stella David spoke to workers at the Clonmel facility for the first time yesterday, and told them the company planned to “invest significantly” in growing the four brands – Tullamore Dew whiskey, Irish Mist, Frangelico and Carolans cream liqueur.
“We see great opportunities to expand the brands,” Ms David said afterwards. “The UK and US are examples of where we can bring great strengths to the brands.”
Recent media reports in the UK have suggested that William Grant might build a distillery in Ireland.
It currently operates a bottling plant in Clonmel, Co Tipperary, taking product from third parties. Its Tullamore Dew whiskey is supplied by Irish Distillers, makers of Jameson.
“We are very skilled at distilling so we will look at opportunities on the horizon,” Ms David said. “These are long-term decisions. We will look at various options in the long term.”
She said William Grant would continue to operate is production facility in Clonmel and its office in Dublin. All of the 63 staff employed by the CC spirits business would be retained. “We are far more likely to be hiring people than the opposite,” she said.
“We are committed to growing in Ireland; we’re committed to the Clonmel site and the office in Dublin.”
Ms David said Tullamore Dew, which sells 600,000 cases of whiskey a year, was the star turn in the portfolio that William Grant had just acquired. “There are a number of jewels but one is shining brighter than the others, which is Tullamore Dew.”
She said Tullamore Dew would become the Scottish company’s sixth “core” brand.
Irish whiskey sales have taken off in recent years, particularly in the US, with compound annual growth rates of 12 per cent a year.
This push has been led by Jameson, with Tullamore Dew now the second biggest Irish whiskey brand.
Ms David said she hoped to maintain this growth path for the brand. “Absolutely, and maybe even exceed it.”
Founded in 1886, William Grant is family-owned, and its portfolio includes Glenfiddich scotch whisky, the Balvernie range of single malts, Sailor Jerry Spiced Rum and Hendrick’s Gin. The company is chaired by Peter Gordon, a great-great grandson of founder William Grant.
In 2008, the group had pre-tax earnings of £129 million (€156.4 million) on turnover of £600 million.
Ms David said the addition of an Irish whiskey brand would complement its existing portfolio.
On the question of whether William Grant is getting value from the €300 million deal, Ms David said: “It was a great deal for CC but it will also end up being a great deal for us. This is about the long term.”
