Seven of the eight core brands owned by the UK's Allied Domecq group posted solid volume growth in the year to 31 August, helping the world's number two spirits and wine group to a 16 per cent rise in turnover for the year.
Turnover for the year rose to £3.3 billion (€5.2bn), in turn lifting pre-tax profits by 6 per cent to £480 million. Allied Domecq's core spirits brands are Ballantine's Scotch whisky, Beefeater gin, Kahlua and Tia Maria liqueurs, Sauza tequila, Maker's Mark bourbon and Courvoisier Cognac, plus the newly acquired Malibu flavoured rum brand. It also owns the Mumm and Perrier-Jouet Champagne brands.
"These results represent a successful outcome to an important year for Allied Domecq," commented Allied Domecq's chief executive, Philip Bowman. "We have maintained our focus on delivering profit growth while adding significantly to our brand portfolio and improving volume performance in key markets.
"Our marketing capabilities have been strengthened, which has led us to invest heavily in the sustainable future growth of the business and bring us closer to our aim of becoming a truly marketing-led company."
Bowman said that the invest in core brands had helped drive up volumes - the company increased its marketing investment in its spirits and wine business by 34 per cent to £443 million during the year - and that he was particularly pleased with the performance in the US, where the company's brands were gaining market share.
Like its main rival Diageo, Allied is busy expanding its business in the ready-to-drink spirits sector, and adding a number of premium wines to its portfolio, including the Spanish group Bodegas y Bebidas and the Californian company Mumm Cuvée Napa. It has also recently launched a new cream based on Tia Maria and called Tia Lusso.
But unlike Diageo, AD has retained its non-drinks business, in particular the Baskin-Robbins ice cream retailer and the Dunkin' Donuts fast food chain, both of which showed strong growth during the year.
Bowman also confirmed that the first few months of the 2002/03 financial year had been good, adding that he expected the recent acquisitions, such as Malibu, would help drive profits in the coming year.