William Grant & Sons has become the latest major whisky producer to report steep declines in financial performance, with profits falling 30% to £388 million in 2024.
The family-owned Scottish distiller, which produces Glenfiddich and recently acquired The Famous Grouse, saw revenues drop 6.5% to £1.834 billion for the year ending December 31, 2024.
The company attributed the decline to “industry-wide challenges” and “significant destocking” that have plagued spirits makers globally.
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READ THE STORYDespite the downturn, the distiller continued investing in brand development and infrastructure, including securing a multi-year partnership between Glenfiddich and the Aston Martin Formula One Team.
William Grant & Sons Expands Portfolio Despite Market Headwinds
The profit decline comes even as the company made strategic acquisitions to strengthen its market position. In September 2024, William Grant & Sons purchased The Famous Grouse and Naked Malt brands from rival Edrington, with the deal finalizing on July 1. While the sale price remained undisclosed, the acquisition of Scotland’s top-selling whisky represents a significant shift in the scotch whisky industry.
CEO Søren Hagh expressed confidence in the acquisition’s potential, stating: “Over the coming years, we will build on this strong foundation and work to evolve the brand into a true global icon.”
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The purchase aligns with broader industry consolidation trends as companies adjust strategies amid challenging market conditions. Edrington’s decision to sell reflects its pivot toward ultra-premium spirits, particularly single malt scotch.
Industry-Wide Spirits Slump
The distiller’s financial results mirror broader troubles across the spirits sector. Competitor Edrington, owner of The Macallan, has reported similar downturns. Diageo halted production at its Roe & Co. facility, while several craft distillers, including Waterford Whisky, Westward Whiskey, and Powerscourt Distillery, have recently filed for bankruptcy.
Global economic conditions and inventory corrections have created significant headwinds for spirits producers worldwide. Retailers and distributors have reduced orders to manage excess stock accumulated during the pandemic boom years.
Hagh acknowledged the challenging environment while maintaining optimism about the sector’s future. “2024 was a challenging year for the spirits industry, with both global economic conditions and continued destocking weighing heavily on performance in comparison to 2023,” he said. “That being said, profits were broadly in line with 2022 and our confidence in the future of spirits means we have continued to invest in both our brands and distilleries for the long-term.”
The company’s commitment to long-term growth despite short-term pressures reflects confidence that current market conditions represent a temporary correction rather than a permanent decline.
