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.”
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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