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On 23 September 2024, in a surprise move, Edrington announced it had agreed to sell its Scotch blended whisky brands The Famous Grouse and Naked Malt to William Grant & Sons. Sold through Edrington's subsidiary, The 1887 Company Ltd, the brands were sold for an undisclosed sum, subject to customary regulatory approvals, including from the UK’s Competition and Markets Authority.
The Famous Grouse has been part of Edrington's portfolio since 1999. For many years, it has been one of the best-selling blends in the UK, leaving consumers to wonder why Edrington would sell it.
According to Edrington, the sale of its blended whiskies marks the next step in its mission to concentrate all its efforts towards establishing a company dedicated to ultra-premium spirit brands, such as the company's Macallan, Highland Park and Glenrothes, the latter of which has recently been given an extra boost in the premium market.
Scott McCroskie, CEO of Edrington Group, said: “This decision is driven by our strategy to focus on our core strengths and the growth opportunities in the ultra-premium spirits category. We consider this the right moment for Edrington to exit the blended Scotch category and focus on our core portfolio of ultra-premium spirit brands.
“The Famous Grouse is a well-loved brand that has consistently performed in its category during the time it has been part of Edrington, and Naked Malt has grown its reputation. I am confident that these brands are well-positioned to continue to succeed as part of the William Grant & Sons portfolio.”
A spokesperson for William Grant & Sons added: “Having been around for over 125 years, The Famous Grouse has a rich history and would be a significant addition to our portfolio. The brand has potential for innovation and international growth in a number of markets, and we’re excited about what the future holds.”
Was it Out of The Blue?
Although the move might seem unexpected, Edrington and William Grant & Sons have been business partners for over 20 years. In 1999, when Highland Distillers was sold, William Grant & Sons joined the deal with Edrington through a joint venture called the 1887 Company, through which The Famous Grouse sale was conducted. Edrington owns 70% of the company, while William Grant & Sons owns 30%. Both companies co-own the distilleries Macallan, Glenrothes and Highland Park distilleries, and Suntory also has a 25% stake in Macallan, which it acquired in 1986.
Given this context, the decision to sell the blended whisky brand wasn't as surprising as it may initially appear. Instead of selling the brands to a company with no previous association with them, the transaction was more like passing on something Edrington no longer needed to an old friend - who, in no doubt, already owned 30% of the brands to begin with.
Needless to say, William Grant & Sons will continue making the blend with its current recipe since it already has access to Macallan, Glenrothes, and Highland Park—key malts in The Famous Grouse blend.
Royal No More?
The late Queen Elizabeth II liked The Famous Grouse so much that 1984 she granted the brand's owner, Matthew Gloag & Sons, her Royal Warrant. The warrant was renewed until her death on 8 September 2022.
Image by Whiskybase
Since King Charles III took over her mother's reign, the king has only renewed two Royal Warrants associated with the whisky industry: Berry Bros & Rudd and D Johnston & Co, AKA Laphroaig distillery. These warrants were given out in May 2024.
Although Matthew Gloag & Sons is still listed on The Royal Warrant Holders Association website by Appointment of HM Queen Elizabeth II, the warrant is under review due to her passing.
It is possible that the brand no longer desires to renew the warrant (which has to be renewed anyway after five years), making Edrington's exit from the blended category a perfect time. At least, the brand no longer has the same association with the ruler of the kingdom it once had.
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