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Old 11-07-15, 18:53   #1
 
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Big Grin 'Bootleggers' Hit Genuine Dominican Rum Sales/Profits

Bootleg Dominican Rum Hits Distiller for £239 Mil:

Telegraph.co.uk, 11 July 2015









Santo Domingo, Dominican Republic. -

Spirits maker Edrington, owner of several global brands, has written off almost £239 million from the value of its Brugal rum brand “after contraband from Caribbean smugglers impacted sales in its domestic Dominican Republic market.”


......



Telegraph.co.uk says Edrington reported significant harm to its Brugal rum brand by the recession in the Spanish and Dominican Republic markets “to the extent that it will have to write off £238.7m from the future value of the rum brand.”

“The company however, also revealed that sales of rum had fallen by 12.9pc in the West Indian island as a result of competition from other brands and “low-price tax-free spirits.”

The outlet also cited Dominican Republic revelation earlier this year that “illegally produced rum and cigarettes cost the government $45m (£28m) in lost taxes last year.”

“The slump in Brugal sales dented the group’s annual revenues by 2.5pc to £617m while pre-tax profits fell by almost 10pc to £157m.”

Telegraph.co.uk said strong demand for the group’s whisky portfolio, offset problems within its Brugal brand and sales
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