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Distil 'optimistic' following Blackwoods gin and vodka success, despite overall fall in turnover

Published:  04 June, 2015

Distil has reported a "satisfactory year" as it completed it transition from UK third distributor to brand-focus drinks company, despite a large fall in turnover.

Distil has reported a "satisfactory year" as it completed it transition from UK distributor to brand-focus drinks company, despite a large fall in turnover.

The company, which owns spirit brand Blackwoods Gin and Vodka, reported turnover down nearly 72% to £666k from £2,405k on the back of the changes, as well as delays in launching Blackwood in the US and Eastern Europe.

The operating loss was reduced by 22% from £367k last year to £286k, the company noted, following a reduction to operating costs.

The company noted rising gross profits and margins on its brands as it focused on brand building with growth in the USA and the UK.

However it noted that performance was held back by a 6-month delay in getting approval for Blackwoods Gin the US and sales of Blavod black vodka falling off in Ukraine, Russia and Eastern Europe.

However Don Goulding, executive chairman of Distil, said the company had made solid progress in the second half with developments in the USA and continued growth in the UK.

"New listings for our brands in many leading bars and pubs together with one of the biggest UK multiple retailers have increased consumer awareness and trial of our products. I'm delighted to report that this level of improvement in our trading has continued into the new financial year and we are therefore optimistic looking forward," he said.

"We expect to further grow revenues and to expand our distribution network," he added.

The Blackwoods brand grew 10% year-on-year, following investment in the gin portfolio, while Blackwood Vodka , which was relaunched as a more premium spirit, was "ahead of expectations".

"We are confident this brand will continue to gain popularity due to its unique consumer proposition in a crowded but large vodka market," the statement said.

RedLeg Rum also grew 84%, it said.

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