(WINDSOR, ON) – Corby Spirit and Wine Limited reports increased profits for its just completed quarter. The company saw its net earnings reach $7.2 million for the three month period ended December 31. This is an increase of $1.1 million compared to the same quarter in 2015.
It products are distilled and bottled at the Hiram Walker distillery in Windsor’s Walkerville area.
Corby’s Voting Class A Common Shares are majority-owned by Hiram Walker and Sons Limited, a wholly-owned subsidiary of international spirits and wine company Pernod Ricard.
Pernod is a public limited company headquartered in Paris, France.
Under an administrative services agreement, Corby manages Pernod’s business interests in Canada, including the Walkerville production facility. The agreement was renewed on November 11, 2015.
At that time, the parties signed a distillate supply agreement, a co-pack agreement, and an administrative services agreement for a ten year term commencing September 30, 2016.
At present Corby sources more than 90% of its spirits production from Hiram Walker, but has added additional capacity in Cowansville, QC, through its acquisition of the Ungava Spirits brands
Corby president Patrick O’Driscoll, in a news release, pointed to three factors for the rise in profits. They were, “… reduced advertising and promotional activities in the US, an increase in commissions on Pernod Ricard brands, in addition to the acquisition of Ungava Spirits brands on September 30, 2016.”
O’Driscoll explained the reduction in, “… US advertising and promotional spending reflects our strategy to focus on our more premium craft Canadian whisky offerings in only select whisky-centric markets.”
The company is pursuing a focused brand prioritization strategy to, its management believes, permit it to capture market share in the segments and markets that are expected to deliver the most growth in value over the long-term.
Over the quarter, Corby saw a modest increase in sales of its JP Wiser’s Canadian Whisky. It is one of the top selling whisky families in Canada and is Corby’s flagship brand. The brand’s retail volumes for the three months ended December 31, 2016, grew 1%, when compared to the same period last year.
The Canadian whisky category was essentially flat for the same three-month period.
Within the range, positive growth posted by JP Wiser’s Deluxe was undercut by JP Wiser’s Special Blend and the flavoured range, which were impacted by a significant increase of competitive retail activity in the economy and flavoured segments of Canadian whisky.