Whisky-maker William Grant & Sons has said it is taking a long-term view of prospects for the business following a sharp fall in both profits and turnover.
The family-owned distiller reported after-tax profits of £240 million for the year to December 30 2020, a fall of 23.4% from the previous 12 months, while turnover slid 11.6% to £1.26 billion.
Famous whisky brands
William Grant, whose portfolio includes single malt brands Glenfiddich and The Balvenie, as well as blended whisky Grant’s, did not offer any figures for its pre-tax bottom-line performance last year.
Accounts lodged at Companies House show the company made pre-tax profits of £375.26m in 2019.
The firm said its latest results reflected a “significant” reduction from the previous year as a result of the Covid-19 pandemic “causing major disruption to the business, the spirits industry and society as a whole”.
But it added it had continued to invest for the long-term, both in its people and in upgrading infrastructure to support growth aspirations.
William Grant’s spiritual home is in Dufftown, on Speyside.
The company also makes gin, vodka rum, brandy, Drambuie liqueur and a wide range of other drinks.
It is owned by chairman Glenn Gordon and his family, who invariably feature at or near the top of Scotland’s wealthiest people in the annual Sunday Times Rich List.
Highlights of 2020 cited by the firm include new product launches for Glenfiddich Grand Cortes XXII in Shanghai, Fistful of Bourbon in the US and “the biggest-ever” media campaign for Hendrick’s Gin in Europe, including TV advertising for the first time in the UK.
William Grant, which also started mass-producing hand sanitiser and built its own PCR Covid-19 testing lab for its own workforce, as well as for the NHS, said its main priority during the year was to “protect all employees and associated stakeholders in the very difficult and challenging environment created by the coronavirus pandemic”.
The 134-year-old firm added: “In addition, the company supported local communities and the hospitality trade throughout the year, and has returned all the furlough monies received at the outset of the pandemic from the UK Government Job Retention Scheme.”
Summing up the financial performance, William Grant said: “Being a privately-owned company has enabled us to continue to take a long-term view.
“Every possible step has been taken throughout the pandemic to protect our people, despite the impact on short-term profitability.
“Once the impact of the pandemic was understood, we were also able to begin reinvesting in our brands and infrastructure to protect our position in the global market.
“Though the future may look different, this continuing reinvestment will help us emerge stronger from the pandemic.”
Video: Watch spaniel Rocco develop nose for whisky on first day of distillery job
