The Famous Grouse sale to billionaire’s empire on the rocks
A deal which saw whisky giant The Famous Grouse sold to one of the UK’s richest men is to be investigated by the Competition and Markets Authority (CMA).
Drinks business Edrington sold the brand, which been owned by its 1887 Company, to William Grant & Sons in September last year for an undisclosed sum.
William Grant & Sons is owned by Scottish billionaire Glenn Gordon and produces whisky including The Balvenie, Glenfiddich as well as Hendrick’s gin.
The deal also included William Grant & Sons acquiring the Naked Malt brand.
Edrington still owns the Macallan, Highland Park and Glenrothes brands.
Speaking in September 2024, Edrington chief executive Scott McCroskie said: “This decision is driven by our strategy to focus on our core strengths and the growth opportunities in the ultra-premium spirits category.
“We consider this the right moment for Edrington to exit the blended Scotch category and focus on our core portfolio of ultra-premium spirit brands.
“The Famous Grouse is a well-loved brand that has consistently performed in its category during the time it has been part of Edrington, and Naked Malt has grown its reputation.
“I am confident that these brands are well-positioned to continue to succeed as part of the William Grant & Sons portfolio.”
A spokesperson for William Grant & Sons added: “Having been around for over 125 years, The Famous Grouse has a rich history and would be a significant addition to our portfolio.
“The brand has potential for innovation and international growth in a number of markets, and we’re excited about what the future holds.”
Sales success for new The Famous Grouse owner
In October last year, Morning Wire reported that sales at the new owner of The Famous Grouse had surged to almost £2bn as its profit passed the £500m mark during 2023.
William Grant & Sons reported a turnover of £1.96bn for its latest financial year, up from the £1.72bn it achieved in 2022.
Accounts with Companies House also showed its pre-tax profit jumped from £397.5m to £554m over the same period.
As well as Glenfiddich and Hendricks gin, William Grant & Sons’ brands include Monkey Shoulder, Sailor Jerry and Drambuie.
In the year to 31 March, 2024, Edrington reported a revenue of £1.33bn, up from £1.27bn while its pre-tax profit increased from £405.1m to £406.9m.
The CMA is to make a decision on whether to refer the probe to a formal investigation on 27 March.
Interested parties have until 12 February to send their comments to the competition watchdog.
The probe comes after the new chair of the competition watchdog has pledged to speed up its decision making and bring in outside expertise as part of plans to reshape the agency following months of criticism.
Doug Gurr, a former Amazon executive who was parachuted in to lead the body after ministers ousted his predecessor last week, said “lengthy and uncertain investigations” were hamstringing businesses and leading to unnecessary costs.