The Tasting Panel magazine

June 2014

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june 2014  /  the tasting panel  /  27 IN THE BIZ A s the September 18 vote for Scotland's independence looms, the Scotch whisky industry is in sharper focus than ever (see Ian Buxton's excellent evalua- tion at www.tastingpanelmag.com). Among the most significant players in the Scotch category, the largest firm to maintain its home base in Scotland is Edrington. Not exactly a household name in the States, even to those pouring its brands, Edrington is nevertheless poised to become a significant force here. "The U.S. is where the innova- tion is," says Paul Ross, CEO of Edrington Americas. A Choice Portfolio Edrington's origins stretch back to 1861, when William Robertson founded a whisky brokerage in Glasgow. A hundred years later, Robertson's granddaughters consolidated the company's interests under a holding company, known as Edrington, stipulating that dividends go to a charitable foundation called The Robertson Trust. The company still counts social awareness as one of its principles. Since 1999, Edrington has owned Highland Distillers, makers of iconic brands The Macallan, The Famous Grouse and Highland Park. In 2008, the company acquired a major- ity share of Brugal, the leading producer of aged rum in the Dominican Republic, and in 2010 blended Scotch whisky Cutty Sark, purchased from Berry Bros. & Rudd, joined the portfolio. Expanding its range of luxury offerings to white spirits, Edrington added Snow Leopard Vodka in 2013. An International Focus Looking far beyond its Scottish home, Edrington is focused on its future as an independent, international company—and that means boots on the ground. The com- pany opened a Shanghai office in 2003—the first Scotch whisky company to do so—and now has 400 employees in Asia, with new teams in Singapore, Malaysia and Vietnam. The Macallan is now the number-one-selling single malt in Taiwan. Edrington has a growing presence in the Middle East as well, but it's the all-important U.S. market that now looms largest in the company's sights. "The U.S. is where the opportunity lies," says Ross forthrightly, noting that over 40 percent of all spirits sold are sold in the States. Although Edrington products were previously available here through Rémy Cointreau USA, the two com- panies reached what Ross calls an "amicable agreement" by which Edrington assumed control of U.S. marketing and distribution for its brands earlier this year. After establishing a beachhead in New York, the company went on a recruitment drive that saw its reach expand across the country, with offices in Miami, Chicago, Orange County and Dallas. "We quadrupled our head count in the States within the past year," says Ross—"I love saying that," he adds. "An Army of Advocates" In "a monumental effort with distribu- tors" based on long-term partnerships with Charmer Sunbelt Group, Martignetti Companies, Republic National Distributing Company, Wirtz Beverage Group and Young's Market Company, Edrington "got in front of 10,000 sales people" over the course of the past few months. While The Macallan is "doing the heavy lifting" in terms of sales (Edrington is putting $200 million into refurbishing The Macallan estate in Speyside), the company is benefit- ting from a rediscovery of sleeper brands like The Famous Grouse, the best-selling whisky in Scotland; the brand is now up 40 percent in the States. Cult whisky Highland Park has its own set of ardent fans. Social media helps amplify word of mouth, creating what Ross calls "an army of advocates." Whether Scotland remains part of the U.K. or goes its own way, Edrington seems to be on an unstoppable growth trajectory—and the U.S. market will be key to its success. Hop Scotch SCOTTISH SPIRITS FIRM EDRINGTON INVESTS IN THE U.S. MARKET IN A BIG WAY Paul Ross is CEO of Edrington Americas. PHOTO COURTESY OF EDRINGTON PHOTO COURTESY OF EDRINGTON by David Gadd Edrington's spirits brands range from vodka to rum to—of course—Scotch whisky. TP0614_001-33.indd 27 5/23/14 8:30 PM

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