Allied aims to fill portfolio gaps with new brands

Allied Domecq is on the look-out for new drinks brands after admitting to gaps in its UK portfolio.

It confirmed it was still eager to buy a vodka brand after being linked in the past with Finlandia and Stolichnaya.

But profits are up for its UK portfolio, which includes Tia Maria, Teacher's, Courvoisier, Beefeater, Lamb's and Harvey's.

David Scotland, president of Allied Domecq Spirits & Wine Europe, said: "At the moment, all our UK brands are in very strong growth.

"Our portfolio is not the greatest but we have skills that other companies would like to share."

Chief executive Philip Bowman revealed that Allied had looked at developing its own vodka brand but had decided to acquire instead.

"We have a small number of suitable candidates," he said. "If they become available on good economic terms, we would look at them very carefully."

This month, Allied reported a 16 per cent increase in pre-tax profits for the six months to February 29 — its first results since disposing of its pubs.

However, the group has indicated that international profits would be hit by the shortages of the Mexican agave plant used for making tequila, caused by disease.

Analysts have predicted a £10m fall in profits for the full year because of the tequila crisis as agave prices rise eight-fold, hitting its Sauza brand.