Burn Stewart Distillers Almost Double Pre Tax Profits

[John]

Burn Stewart Distillers, the East Kilbride-based whisky maker, was in high spirits after almost doubling pre-tax profits on the back of significant growth in its international markets and the success of its turnaround strategy.

The company's upbeat news comes on the heels of its victory at the International Spirits Challenge 2009 earlier this month, where it scooped two gold and four silver medals across its brands, including its Bunnahabhain 25-year-old single malt.

Fraser Thornton, the distiller's managing director, told The Herald that pre-tax profits came in at £650,000 for the 2008 calendar year, compared with £380,000 the year before.

"We're very pleased - considering that back in 2005 we posted a £3m loss," said Thornton. "This is really a story of progress and I'm glad to say we're moving in the right direction."

advertisementThornton said that over the course of 2008, the company sold some 52 million bottles of whisky - around 10% better than the previous year - with some 80% of its sales now in international markets.

Over the past few years, the company has shifted focus from supplying own-label spirits to supermarkets to promoting its own brands at home and overseas.

Burn Stewart, which employs 250 workers, now only supplies own-label goods to Marks & Spencer.

Exports currently account for around 80% of sales by volume, compared with 50% five years ago.

While turnover slipped to £43m last year, compared with around £45m in 2007, Thornton said the accompanying rise in profits was a testament to the company's strategy and improved margins.

One of the key drivers in the progress is the continued growth of Scottish Leader in Taiwan.

John

Source: The Sunday Herald