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Blavod prepares product launches following Christmas sales boost

Published:  03 February, 2014

Blavod Wines & Spirits saw its own brand sales jump 43% over the Christmas period as it continues to cut costs and prepares to launch several new products.

Don GouldingDon GouldingBlavod executive chairman Don Goulding

The group, which owns Blavod Black Vodka, Blackwoods Gin and Vodka and RedLeg Spiced Rum, said it expects margins from its owned brands to continue to increase as sales of the group's re-packaged brands develop in the UK and internationally.

From October 1 to December 31, 2013 it reduced overheads by 44%, cut financing costs by 74% and said it "remains on track to achieve monthly break-even by early part of financial year".

Since the start of 2014 it signed a new distribution deal in Spain with the Water Company and launched Blackwoods Botanical vodka.

A spokesman for Blavod said: "Revenues and margins have continued to rise with an increasing proportion of sales derived from its owned brands including Blackwoods Gin and RedLeg Spiced Rum."

Sales of its Blackwoods Vintage Gin 40% and Blackwoods Limited Edition 60% are continuing to grow following a packaging redesign in 2013.

The company has been focused on its RedLeg Spiced  - during October, November and December the RedLeg rum shack went on tour to a number of key locations including Birmingham, Brighton and London. "This proved a very popular and cost effective way of increasing visibility and awareness of the brand as well as introducing it in an engaging way to its target audiences", the group said. It is planning further pop-up rum shack events for the first six months of 2014.

Other brands being developed by the management team for re-launch in the next few months include Diva Vodka - a super premium Vodka with Swarovski crystals in the bottle and Jago's - a vodka vanilla cream liqueur developed by Baileys inventor Tom Jago.

Operationally, the Group has continued to reduce costs. Overheads are down by over 40% compared to the equivalent period last year due to the restructuring  earlier in the year. Financing costs  are also down by over 70% mostly due to the successful equity placing in October.

Don Goulding, executive chairman of Blavod, said: "This has been a very productive few months for the group and we have made strong progress in increasing the market share of our own brands as well as developing a number of new concepts to the point where they can be launched later this year. The growth in our margins is particularly good to see as we continue to reduce our exposure to low margin business and focus on increasing shareholder value by developing our own premium brands and marketing these in the UK as well as developing new markets around the world".