Whisky company Edrington, owner of The Macallan, has posted a 26% slump in pre-tax profits and a 10% fall in core revenue as further evidence of the downturn in the global spirits market.
Glasgow-based Edrington, which also owns Highland Park, said pre-tax profit fell to £274.4m and revenue to £912m in the year to the end of March.
It said the decline in sales was broadly consistent across international markets, with a resilient performance by Brugal rum in the Dominican Republic proving an exception, along with The Macallan in South Korea and Japan.
The Macallan 12, 15 and 18-year-old expressions continued to grow in China and the company saw high consumer demand for products launched to celebrate The Macallan’s 200th anniversary.
However, core contribution declined more sharply, reflecting increased production and employment costs.
The business reduced brand investment by 9% in line with the reduction in revenue although the reinvestment ratio remained at market-leading levels at 24% of core revenue.
Edrington said the slump followed a period of industry-leading growth, during which the business has grown significantly.
In the past financial year “Edrington experienced the full-year impact of reduced consumer demand,” though core contribution was 38% ahead of pre-pandemic levels.
The company sold The Famous Grouse and Naked Malt brands to William Grant & Sons, effective yesterday. Reported results for 2025 exclude these brands, which are recorded as discontinued operations.
Edrington’s performance mirrors a decline at other companies in the sector. Diageo, producer of Johnnie Walker whisky, has paused production at the Roe & Co whiskey distillery in Dublin. In March, it announced it would pause production and barrel filling until June at its at its whiskey distillery in Kentucky, in order to “support our efficiency and productivity goals.”
Elsewhere, distilleries have been slowing or shutting down production over the past year amid a downturn in drinking and economic uncertainty surrounding US President Donald Trump’s tariff announcements.
In January, Brown-Forman informed investors that it would be laying off about 12% of its global workforce and closing its Louisville-based cooperage.
In April, Isle of Harris Distillery announced plans to reduce its production capacity and workforce.
Commenting on Edrington’s results, chief executive Scott McCroskie, said: “After several years of unprecedented growth for premium spirits and industry-leading results posted by Edrington, the business felt the full effect of the global economic downturn during the year.
“Our focus on ultra-premium spirits has driven Edrington’s growth in recent years and we have continued to execute our strategy despite the hostile trading environment. This includes further strategic investments in our sherry cask supply chain and in reducing our carbon footprint.
“On 1 July 2025 we completed the sale of The Famous Grouse and Naked Malt brands to William Grant & Sons. This reflects our choice to focus on the premium end of the market, where we are best placed to compete.
“Looking ahead, the political and economic backdrop remains volatile, which we expect will continue to weigh on consumer sentiment in the coming year.
“We believe top-line growth will be difficult to come by in this environment, although adjustments to overheads and brand investment are expected to align net sales and core contribution more closely next year.
“Edrington’s strategic focus on ultra-premium spirits remains effective. We will continue to execute it to strengthen our brands and our business for the long-term benefit of our investors, our employees, and those who benefit from our own and our principal shareholder’s charitable activities.”
source