Maxxium toasts profits jump

Maxxium UK has posted a 50% surge in profits, which the company credits to growth in its core brands portfolio.

Accounts filed at Companies House showed that the joint venture between The Edrington Group and Beam Global Spirits and Wine posted a pre-tax profit of £3.8 million in the year to 31 March 2010, up from around £2.6m.

Turnover rose by 50% to £210m as Maxxium grew sales of its core brands, took over responsibility for distributing more of its owners’ products and set up a travel retail business.

Edrington produces whiskies including The Famous Grouse, The Macallan and Highland Park, while US-based Beam owns brands including Teachers, Laphroaig and Courvoisier.

Maxxium company secretary Jeremy Chaplin said: "The growth in the core brand portfolio was significantly ahead of the spirits market and this delivered strong underlying growth in revenue and profit."

The accounts mark the first full year’s trading since Maxxium went through major restructuring.

Pernod Ricard pulled its Vin & Sprit brands – including Absolut Vodka – out of the alliance in 2008, while fellow French producer Rémy Cointreau did the same in 2009.

The company said the sales boost it had received by taking on distribution of its owners’ high-end brands should continue.

There remains a degree of uncertainty surrounding the alliance’s future after Beam owner Fortune Brands announced plans to split itself into three different businesses.

Analysts speculated that floating off Beam as a separate entity was part of a plan to make the business more attractive to potential buyers.

Alan Lodge, 05.01.2011