8th May 2014 11:58
LONDON (Alliance News) - London-based drinks company Distil PLC Thursday said that it is set to meet market expectations for its last financial year, and is on target to achieve monthly break-even in the early part of the current financial year.
Distil, which recently changed its name from Blavod Wines & Spirits, has spent the last two years re-shaping the business away from distributing third-party brands, to developing a growing portfolio of its own brands, including Blavod Vodka, Blackwood's Gin and Vodka, RedLeg Spiced Rum, Diva Vodka and Jago's Vanilla Cream Liqueur.
In a post-close trading statement, the group said that trading in the year ended March 31 remained in line with expectations, having seen good growth in its premium Blackwood's gin brand, and its RedLeg rum.
The group also said that it is currently in talks with a number of parties to appoint a new distributor for Blavod Black Vodka in the US, to help it expand into the US export market.
"Overall conditions remain particularly challenging for the "value" segment of the market as the leading standard brands chase volume, however I'm pleased to say that premium brands such as ours, continue to take market share and to provide growth in key markets," said Executive Chairman Don Goulding in a statement.
Distil said that on the international front, it has seen a slow down in growth in Asia, particularly in China.
"Although these markets are relatively underdeveloped for our brands, we are actively seeking to open new distribution channels in this region which we believe has great potential over the longer term," Goulding added.
Distil spent much of last year working on improving its portfolio of products and their packaging, especially for its Blackwoods brand, as well as Diva vodka and Jago's cream liqueur.
It recently re-launched the Blackwoods brand, and said that both Diva's and Jago's development are now nearing completion, with a planned launch for Diva ahead of the peak Christmas trading period.
The company said it plans to announce it full-year results in June.
Distil shares were trading 3% higher Thursday morning, at 1.37 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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