Business Briefs - June 30

Edrington Group, which is the company behind The Famous Grouse and The Macallan whisky brands has reported a 9.4 per cent fall in pre-tax profits, after a £239 million writedown for its Brugal rum brand.

The Glasgow-based group said profits had slumped to £157.6m in the year to March on the back of the hit.

The firm cited “tough economic and competitive conditions” in the key markets of Spain and The Dominican Republic for the writedown.

Turnover also slipped by 2.4 per cent to £617.1m.

However, it recorded growth across its brand portfolio in the US.

Last year it launched its own sales, marketing and distribution firms in the Middle East, US and South East Asia.

The group said the move had helped its brands to continue expanding in important premium spirits markets.

The Macallan performed strongly during the year, with turnover growing by 10.5 per cent. Edrington said the whisky brand now occupied market-leading positions in Russia, China, Japan, South Korea and Hong Kong and the number two position in the US.

Its Highland Park whisky performed strongly in the US, while The Famous Grouse increased its volume and market share in the UK and grew in several emerging markets, including Turkey, Russia and sub-Saharan Africa.

Cutty Sark grew volume and market share in its largest market, Spain, while Snow Leopard vodka showed “positive volume growth”.

Cairn facing new snags over $1.6bn tax wrangle

Edinburgh-based Cairn Energy has been hit with a major set-back in its attempts to resolve an ongoing $1.6 billion tax dispute with the Indian government.

According to reports in India, the government had objected to Edinburgh-based Cairn Energy’s application to have the dispute dealt with by arbitration under the UK-India Investment Promotion and Protection Treaty.

The Economic Times said the Indian Finance Ministry claimed tax matters were not covered by the treaty.

Cairn Energy did not comment on the report, but is understood to remain confident that the dispute will still go to arbitration.

Brewdog formally annouces with US expansion

Aberdeenshire craft beer maker Brewdog has formally announced its plans to open a North American HQ and its first production facility outside the UK, located in Ohio.

The Ellon firm said it had been inundated with enquiries after it revealed preliminary plans earlier this month.

According to reports, the venture is set to cost in the region of $30m.