Stepped-up spend for Glenmorangie in Christmas boost

Glenmorangie is stepping up investment to give a further boost to sales of its whiskies in pubs.

Its malt whisky and wood finishes will be promoted heavily in the run-up to Christmas on both radio and TV.

The company hopes to offset falling profits caused by a decision to reduce bulk sales to other producers for blended whiskies.

"This is very much a year of transition as we accelerate our plans to support our premium brands and cased sales," said chairman Geoffrey Maddrell.

Over the six months to September pre-tax profits slumped by 27 per cent to £3.33m and turnover fell by seven per cent to £21.12m.

Glenmorangie decided to shift away from the lower-margin bulk sales to save the stock for the more profitable cased sales.

This was successful, with bulk whisky sales reduced by 60 per cent over the six months.

However, most bulk sales take place in the first half of the year while cased sales take off in the second half.

"The new strategy means a rebalancing of first and second-half profits," Maddrell explained.

Over the six months the Glenmorangie brand grew in revenue by nine per cent and volume by three per cent.

On an annual total basis to August, this increased its UK market share from 19.6 per cent to 20.2 per cent in the on-trade.

Although he warned of a fall in consumer confidence, Maddrell said the company was on track for a "satisfactory" set of results for the 12 months.

Glenmorangie, which is the largest independent single malt whisky producer, also makes Ardberg, Glen Moray, Bailie Nicol Jarvie and Highland Queen brands.