Spirits business White spirits volumes declined year on year by 4.3%, however, revenues increased 14.9% due to the higher prices introduced by the tax rise in August 2007 and January 2008, plus a price rise introduced by the Company itself in early 2008. The white spirits business is not a growth segment and will at best remain flat for the foreseeable future. The main competition is illegal moonshine and while the economy fails to perform, we expect this non-taxed competition to be a viable but dangerous alternative for low-income earners.
Annual Report 2008
72