Drinks firm enjoys rapid growth thanks to popularity of up-market brands
A firm which specialises in up-market spirits and craft beers saw a 26% increase in growth over the last 12 months.
Liverpool based Halewood Wines and Spirits has announced its annual results for the year ended 29 June 2019.
Earlier this year it was revealed that the company was up for sale. That decision has been reversed due to the strength of its gin brands.
The company delivered strong growth in underlying EBITDA driven by core artisanal brands: Whitley Neill Gin – which has become the UK’s number one premium gin, JJ Whitley Gin, Crabbie’s Whisky, Peaky Blinder Spirits, Dead Man’s Fingers Rum, and The Pogues Irish Whiskey.
Group revenues grew by 26% and adjusted EBITDA by 15% to £26.3m from £22.9m last year.
During 2019 shareholders and senior managers decided that the sale of the business was not in the best interests of the group due to the significant growth opportunities in artisanal spirits.
Judy Halewood, who chairs Halewood, was seeking a buyer for the company she inherited from its founder, her late partner John, who died in 2010.
The firm hired NM Rothschild to carry out a “strategic review” to explore options, including a sale.
The decision not to sell resulted in one off deal costs and contractual management incentive payments in return for a long term commitment from senior managers.
The group remains focused on premium artisanal craft spirits with strong provenance and brand marketing both in the UK and Internationally.
Halewood continue to invest in Route to Market distribution and vertical integration in core markets with “boots on the ground”.
The firm made further investments in brands, distilling, brewing and bottling capability and has created a unique portfolio of artisanal Brands with strong provenance.
International expansion in North America, Russia, China and Australia through acquisition and investment in sales infrastructure is expected to yield positive results in the coming years
H&A Prestige has performed well as the demand for specialised packaging and new artisanal spirits remains buoyant.
South Africa has achieved strong growth in spirits, particularly Belgravia Gin, despite economic headwinds and has invested in canning and distilling capabilities.
Stewart Hainsworth, group chief executive said: “Halewood has delivered an excellent year of growth and with Whitley Neill Gin as the number one premium gin in the UK.
“The strategy of offering artisanal spirits across all channels, regions and consumer price points has transformed the business. We have taken the initial steps to drive the next stage of our growth by investing in dark spirits and international sales infrastructure.”
The business operates a number of craft breweries and artisanal distilleries across the UK including: Hawkshead Brewery in Cumbria, Sadler’s Ales in the Black Country, Aber Falls Distillery in North Wales, City of London Distillery and the new Liverpool Gin Distillery.
A craft distillery is also planned to open in Edinburgh in 2019 for Crabbie Whisky.
Outside the UK, the business exports products to over 100 countries around the world and has significant operations in a number of international markets including North America, South Africa and China.
The business was founded by the late John Halewood in 1978 and it remains owned and controlled by the Halewood family.
