Statement of corporate governance

Macdonald and Muir Limited

Statement of corporate governance
Section 172 statement

This section serves as our section 172 statement and should be read in conjunction with the Strategic report(1). Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Directors continue to have regard to the interests of the Company’s employees and other stakeholders, including the impact of its activities on the community, the environment and the Company’s reputation, when making decisions.

The Board regularly reviews with our principal stakeholders and how we engage with them. This review is part of the Budget and Five Year Plans cycles at LVMH and Moet Hennessy levels. These forecast cycles are the opportunity to share the long term strategic orientations and the short term execution of the plans behind our brands. This review, formalised though direct meetings twice a year, enables to cover marketing, sales strategy, and operations.

The Board ensured in 2019 a continuous engagement with the employees. The communication on all company operations and brand performance is regularly ensured through quarterly business reviews. Regular written monthly communication through teams briefings, available electronically or on noticeboards covering all recent information about brands performance or departments highlights. Reinforcing the company’s approach, the employees involvement into the decision making has been encouraged in 2019 through the implementation of a company event to share the values of Moet Hennessy and its new program ‘Shaping change’.

We put utmost importance on all our employees to behave and act according to the highest level of integrity and respect of compliance rules and regulations. As a key element of this, the board has ensured each employee formally agrees with the LVMH Code of Conduct and guiding principles and with all applicable laws, regulations and industry standards. One of the board member is a member of the Moet Hennessy Ethics and Compliance correspondent, ensuring the application of these principles.

We aim to work responsibly with our suppliers. All our suppliers are required to align with the LVMH Code of Conduct. Respect for national and international laws, regulations and rulings, notably in the area of social and environmental legislation, is a prerequisite for being a supplier of the Company.

We aim to work responsibly with our environment. The board has encouraged in 2019 the company to engage and progress in an award-winning environmental project to recreate extinct oyster reefs near Glenmorangie. Glenmorangie has also entered in its’ 11th year partnership with the National Museum of Scotland. The collaboration funds a Glenmorangie research position, which explores the early people of Scotland and their creations. 

(1)The Strategic Report forms part of our annual accounts which are available on Companies House website https://beta.companieshouse.gov.uk/

Glenmorangie celebrates its 175th anniversary with multi-million pound investment

Glenmorangie marks 175 years of exceptional whisky creation by announcing its plans for a new still house. Funded by a multi-million-pound investment from The Glenmorangie Company, the expansion is designed to position the Highland Distillery for ever-greater success.

Dornoch Environmental Enhancement Project - Phase II

In 2017, Glenmorangie, along with its partners Marine Conservation Society and Heriot Watt University, placed 300 oysters in the protected waters around their Highland Home, to confirm the species could survive.

Now, a total of 20,000 oysters are to be introduced into the sea near Glenmorangie Distillery, as part of the ground-breaking project to restore oyster reefs fished to extinction a century ago. In pursuit of its vision to enhance the marine biodiversity of the Dornoch Firth for the second phase of the project, they are to recreate entire reefs – the very first time this has been attempted anywhere in Europe. 

Dornoch Environmental Enhancement Project Phase I

Glenmorangie has officially opened its €6million anaerobic digestion plant at its Distillery in the Highlands of Scotland. The plant is expected to purify up to 95 per cent of the waste water that the Distillery releases into the Firth.

Working in tandem with the anaerobic digestion plant, Glenmorangie has pioneered a ground-breaking environmental project, reintroducing Native European oysters to coastal waters around the Distillery.

The remaining 5 per cent of the organic waste from the Distillery will be naturally cleaned by the oysters which will enhance biodiversity and purify the by-products created through the distillation process.