Spiced Rum Brand Lays off Over 500 People Amid Falling Profits From Cyber Attack and War in Ukraine
(Photo: Dead Man’s Fingers)
A recent filing with the Companies House shows that the UK-based distiller and distributor, Halewood Artisanal Spirits, which owns Dead Man’s Fingers rum brand, has cut more than 500 jobs. The layoffs come amid falling profits as the company saw its net revenues decline by £33 million (about $41.6 million US) for the period ending July 1, 2023. The makers of Dead Man’s Fingers Spiced Rum referenced a 2022 cyber attack and the conflict in Ukraine as factors in the company’s losses.
According to Halewood’s annual audit, the company’s employees went from 1,002 to 472 during the last period. The headcount was reduced partially in response to inflation with cuts made to non-whiskey projects and international expansion being scaled back.
The report read, “Net revenues in the period declined by £33m driven primarily by strategic business decisions; £25m of the change to focus away from low margin non-core activities in the UK through the cessation of all agency brands, third party and own label contract manufacturing agreements. [Halewood Artisanal Spirits] stopped geographical expansion and low margin brands were either sold or delisted.”
The cyber attack is said to have disrupted the supply chain during the peak Christmas trading period between Oct. and Dec. 2022 which resulted in loss of sales. The war in Ukraine also “resulted in a considerable impact on our supply chain,” according to the report.
The report continued, “The supply chain costs, especially freight, spiraled to unprecedented magnitudes.”
In 2022, the spirits company disposed of two subsidiaries in South Africa and Russia. Halewood’s was also sourcing its vodka from Russia and the war meant the company needed to rebuild its market share with a product sourced in the UK.
One of the bright spots for the company was a 31% net revenue growth from Dead Man’s Fingers Spiced rum.
Despite a rough year, Halewood Artisanal Spirits plans to grow its earnings before interest, taxes, depreciation, and amortization (EBITDA) and create growth by focusing on its own artisanal spirits.
As for Dead Man’s Fingers, the brand has continued to release creative takes on flavored rums. This includes a recent collaboration with fast food chain KFC to create a fried chicken-inspired rum.
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