William Grant to offload liqueurs

SCOTTISH group William Grant, makers of Glenfiddich whisky, is to offload three liqueurs for €129 million to Campari, five months after acquiring them and Tullamore Dew whiskey from C&C.

Stella David, group chief executive, described the offer from the Italian drinks company as “compelling”, but declined to say if she had initiated the sale, which will be completed on October 1.

No job losses will result from the deal.

Gruppo Campari has signed a 10-year manufacturing services agreement with the Clonmel site to have the brands blended and bottled there.

The group is committed to investing in Tullamore Dew, which is being positioned as one of the group’s core global brands. Tullamore Dew sells over 600,000 cases annually and Ms David said her aim was to get that figure above 1 million within a few years.

“We remain committed to building our business in Ireland and to building the long-term value of Tullamore Dew around the world. Whilst Tullamore Dew was the key focus in our newly acquired portfolio, we always intended to develop the liqueur brands. This is a great deal and will allow us to focus efforts on developing Tullamore Dew into a truly global Irish whiskey brand and operate in a dynamic and growing category,” she said.

She played down reports of plans for a distillery in Clonmel. Some media outlets had expected an announcement on the distillery before now but Ms David stressed that it was “a long-term decision”.

She identified South Africa, Australia and Russia as markets offering potential for its newly acquired Irish whiskey – sales in those markets are minimal. “Opportunities are unlimited” she said, given the “history and heritage” that can be called on to create a profile for the brand across the world, she said.

Camapri chief executive Bob Kunze-Concewitz, said: “With Carolans, Frangelico and Irish Mist we add a high-quality and profitable business with upside potential and further enhance the group’s premium offering.”