10 October 2008 - Raynal & Cie, a French brandy producer, will be shutting its facility in the town of Cognac on 31 December and will move production to Glasgow, Scotland, where its parent company William Grant & Sons is based.
William Grant & Sons said that such a decision was based on the fact that energy and raw material costs are high and that the Cognac plant was not operating efficiently and could be a loss-making facility in just under three years.
The Raynal plant in Cognac employs 42 workers.
Raynal was established in 1840 and is specialised in the production and marketing of premium French brandy.
Meanwhile, last week William Grant & Sons announced plans for a European multi-market relationship with Rémy Cointreau.
The plans include a new joint venture partnership in France and third party sales, marketing and distribution deals in the UK, where William Grant & Sons’ UK subsidiary First Drinks Brands will become the distributor of Rémy Cointreau’s portfolio, and in Belgium and Luxembourg where the Rémy Cointreau companies will distribute the William Grant & Sons portfolio, the company said.
The deal will also secure the future of Lixir in France (currently jointly owned by William Grant & Sons and Maxxium) which will continue as an operating company with William Grant & Sons and Rémy Cointreau as equal shareholders. This is effective from 3rd October 2008.