Assignment 2
Highland Distillers Ltd
Data & Information pack
Highland Distillers Ltd (HDL)- Profile
Background
- Established 1997in Glasgow.
- All bottling of HDL product is contracted out to a specialist local Bottling Co (Christy Bottlers Edinburgh CBE)
- Glasgow Head Office staff 34 in total (Sales 12, Marketing 8, HR 4 , Finance 4 Procurement 2 & Ops Management 4).
- 3 Core brands
- Glen Stewart 8 year old Malt’
- ‘Stewart’s Blend 12 year old blend’
- ‘Royal Stewart’ liqueur
- All come in 2 sizes of bottle (50 cl, &1 litre)
Current Metrics (2017 data)
- Sales have rapidly increased + 340% (ahead of plan)since 2013.
- Total Sales volumes for is at 85,000 cases. Total Sales are projected to increase through to 2020.
- Gross Profit has levelled at £13m. The ‘Glen Stewart’ brand is the most profitable generating over 65% of current profits.
- Customer Service issues & complaints have steadily increased to a total > 380 per year . Predominantly on Glen Stewart on packaging quality.
- Total Production is currently at 142,000 cases per year.
- Cased goods inventory is at an all time high of 57,000 cases (@ average case cost of £40 per case).
Context & Insights
- 6 New Product Developments (NPD) are planned for 2019 roll out in Royal Stewart & Stewart Blend brands.
- 2 Range extension products on Glen Stewart due to launch 2020.
- HDL is now big enough to attract core packaging suppliers and Contract bottlers for long term contracts.
- Plan to recruit 8 new staff into Sales & Marketing.
- CBE currently have no capacity issues. Plan to increase HDL costs by 10% in Jan 2019.
- CBE have a similar amount of quality complaints with their other Customer products.
- CBE are not perceived to be in the top 5 spirit bottling contractors in the UK.
- All incoming materials and finished goods are currently under strict CBE Quality Control practices.
- Current supply lead time to Customers is 7 weeks from receipt of order for all products. CBE accounts for 5 weeks of this lead-time.
- The results of a recent HDL internal survey highlighted that staff are:-
- 53 % feel over worked/undervalued.
- 49% disengaged with the company.
- 78% started with the company in 2013/4.
- 42% Feel the company is now too focussed on Sales & Marketing.
- 28% feel the internal systems are no longer good enough.
- 90% are very proud of ‘their’ brands and what they have achieved
|
Sales per year (cases) |
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
|
Glen Stewart 50 cl |
5,000 | 7,000 | 7,500 | 9,000 | 12,000 | 14,000 | 18,000 | 20,000 |
|
Glen Stewart 1 ltr |
5,000 | 6,000 | 10,000 | 12,000 | 15,000 | 20,000 | 25,000 | 30,000 |
|
Royal Stewart 50 cl |
0 | 3,000 | 6,000 | 7,000 | 5,500 | 6,000 | 7,000 | 10,000 |
|
Royal Stewart 1 ltr |
2,000 | 10,000 | 15,000 | 15,000 | 13,000 | 15,000 | 17,000 | 20,000 |
|
Stewart’s Blend 50cl |
4,500 | 4,000 | 5,000 | 12,000 | 14,500 | 14,000 | 14,000 | 16,000 |
|
Stewart’s Blend 1ltr |
8,000 | 9,000 | 14,000 | 17,000 | 25,000 | 25,000 | 25,000 | 25,000 |
|
Total |
25,000 | 36,000 | 57,500 | 72,000 | 85,000 | 94,000 | 106,000 | 121,000 |
|
Production volume per year/Bottling cost per case |
2013 | 2014 | 2015 | 2016 | 2017 |
|
Glen Stewart 50 cl £10 |
7,000 | 9,000 | 18,500 |
20,000 £12 |
22,000 |
|
Glen Stewart 1 ltr £8 |
5,000 | 7,000 | 11,000 |
12,000 £10 |
15,000 |
|
Royal Stewart 50 cl £10 |
2,000 | 5,000 | 7,000 |
7,000 £12 |
7,500 |
|
Royal Stewart 1 ltr £8 |
4,000 | 10,000 | 10,000 |
25,000 £10 |
28,000 |
|
Stewart’s Blend 50cl £10 |
8,500 | 7,000 | 15,000 |
19,000 £12 |
26,500 |
|
Stewart’s Blend 1ltr £8 |
6,000 | 10,000 | 24,000 |
27,000 £10 |
43,000 |
|
Total |
32,500 | 41,000 | 85,500 | 110,000 | 142,000 |
|
Inventory per year /cost per case |
2013 | 2014 | 2015 | 2016 | 2017 |
|
Glen Stewart 50 cl £ 54 |
2,000 | 2,000 | 11,500 | 11,000 | 10,000 |
|
Glen Stewart 1 ltr £48 |
5,000 | 1,000 | 1,000 | 0 | 0 |
|
Royal Stewart 50 cl £38 |
2,000 | 2,000 | 1,000 | 0 | 5,500 |
|
Royal Stewart 1 ltr £34 |
2,000 | 0 | 5,000 | 4,000 | 15,000 |
|
Stewart’s Blend 50cl £32 |
4,500 | 3,000 | 10,000 | 7,000 | 12,500 |
|
Stewart’s Blend 1ltr £30 |
2,000 | 1,000 | 10,000 | 17,000 | 15,000 |
|
Total |
17,500 | 9,000 | 37,500 | 39,000 | 57,000 |
|
Customer complaints per year |
2013 | 2014 | 2015 | 2016 | 2017 |
|
Glen Stewart 50 cl |
0 | 5 | 8 | 12 | 56 |
|
Glen Stewart 1 ltr |
2 | 6 | 8 | 57 | 82 |
|
Royal Stewart 50 cl |
8 | 12 | 12 | 60 | 59 |
|
Royal Stewart 1 ltr |
9 | 12 | 18 | 51 | 59 |
|
Stewart’s Blend 50cl |
7 | 13 | 18 | 47 | 58 |
|
Stewart’s Blend 1ltr |
9 | 12 | 23 | 36 | 67 |
|
Total |
35 | 60 | 87 | 263 | 381 |
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