Distil reports continues strong progress in third quarter
Distil report continued strong progress through its third quarter on Tuesday, and announced the launch of a “new-to-world” botanical vodka brand.
The AIM-traded firm said tear-on-year revenues in the quarter through December were ahead 22%, supported by up-weighted marketing investment.
Cumulative revenues for the nine months ended 31 December grew 70% over the same period a year earlier.
Distil said the new brand being launched, meanwhile, was ‘TRØVE Botanical Vodka’.
“The third quarter is our busiest trading period and despite relatively muted Christmas and New Year celebrations, revenue increased by 22% year-on-year with our key brand growth outperforming their relative categories, and the overall spirits market,” said executive chairman Don Goulding.
“Cumulative sales revenues year-on-year for the nine months, through December, are ahead 70%, with domestic sales growing 60% and exports up by 200%.
“Within these results we have seen sizeable shifts in both product mix and source of volume as a consequence of market and trade channel closures, together with changes in consumer behaviour and rituals.”
Goulding said sales gains in grocery retail and online had “largely offset” significant declines across both hospitality and travel retail sectors.
That, he said, was reflected in its brand mix, noted that in the third quarter RedLeg Spiced Rum increased revenue by 21% year-on-year and Blackwoods Gin advanced 41%, while the company saw a 25% decline in Blavod Vodka due to its volume being weighted towards duty free retail.
“As the fourth quarter has commenced with further restrictions and uncertainties in all major markets we are unable to provide market guidance for the full year.
“I can confirm that our primary areas of focus are the health and wellbeing of staff, continuity of product supply, targeted brand marketing and new product development.”
Don Goulding said the company’s first new product launch in 2021, due late February, was a “new-to-world” brand, ‘TRØVE'.
“Targeting emerging consumer trends towards lower alcohol-by-volume offerings to suit more balanced lifestyles, we have worked in partnership with master distiller Sion Edwards to create an all-natural botanical vodka spirit that delivers the same complexity of flavour and rich mouthfeel as full-strength spirits, at just 30% ABV.
“This has been achieved by distilling real fruit together with botanicals which have been carefully selected to amplify natural flavours and give body to the liquid.”
At 1535 GMT, shares in Distil were up 0.45% at 2.26p.