The Edrington Group (Edrington) today announced that it has formed a partnership with the Brugal Company under which Edrington has acquired a majority shareholding in Brugal Company.

Brugal is one of the largest international golden rum brands in the world selling five million cases and is in the top 20 of Impact’s Top100 growth premium spirit brands worldwide.  It is the leading rum brand in the Dominican Republic, where it has over 80 per cent market share. Brugal brand rum has export sales of about one million cases and is the fastest growing rum brand in Europe, having grown over 70 per cent between 2002-2006 (Source: International Wine & Spirit Record).  

As a result of this transaction Edrington is able to enter one of the fastest growing spirit categories globally through Brugal, complementing its leading portfolio of premium Scotch whisky brands.  Currently Edrington produces The Famous Grouse, Scotland’s best selling whisky, Cutty Sark and the premium single malts The Macallan and Highland Park.

Brugal will continue to be produced in the Dominican Republic under Brugal family supervision, maintaining a tradition that dates back to 1888.  The Brugal family will remain as shareholders and have an active role in managing the company and brand.  George Arzeno Brugal will remain as president of Brugal Company’s board of directors and Franklin Baez Brugal will become executive president of Brugal Company’s board of administration.

Commenting on the transaction, Edrington chief executive Ian Curle said: "We are hugely impressed with the growth of the Brugal brand and are excited by the brand’s prospects.  We admire the quality of Brugal Company’s operating facilities, management and culture and look forward to capitalising on the existing strength of the brand, working with Brugal Company to further develop the brand internationally.

"The agreement with the Brugal Company is in line with our strategy and is a major step forward for Edrington.  We announced some time ago our objective to increase international growth and stated that as well as developing our core brands, we also intend to target opportunities outside the Scotch whisky category.

“Brugal is a high growth brand in a dynamic category and we intend to fulfil its significant potential.”

George Arzeno Brugal, president of Brugal Company, said: “We are very pleased to enter this new partnership with The Edrington Group, whose culture and values make them an ideal partner for Brugal Company.  We think this new alliance, combining the heritage and skills of Brugal Company in the premium rum sector with the international premium brand marketing and distribution strength of Edrington, will bring significant benefits to the brand and to both partners."

The Brugal Company will continue to have its headquarters and management based in the Dominican Republic and Edrington is committed to investing in the company’s local assets and continuing production of Brugal rum on the island.  As the only substantial rum producer in the Dominican Republic, Brugal will continue to focus on the exceptional product quality of its golden rum.

The Brugal Company will establish its international sales and marketing office in Spain, its major market outside the Dominican Republic, and build upon its strength as the number two golden rum brand.  The partners look forward to working together in the years ahead to further develop the Dominican Republic’s national brand into one of the world’s leading international rums.

Both companies share a commitment towards social corporate responsibility, which is manifested through the work of the Brugal Foundation and the manner in which both companies promote the responsible use of their brands.

McQueen Limited acted as financial adviser and as debt adviser to The Edrington Group.

Enquiries:

Luke Withnell – 020 7484 8812

George Fleet – 020 7484 8807