Panache CEO resigns over strategy review

The CEO of Panache Beverages, producer of Wodka Vodka and Alibi Whiskey, has resigned along with two other members of its board following a review of the company’s business strategy.

Panache Beverages is “operating business as usual” following the resignation of key board members

CEO and president James Dale handed in his resignation along with COO Agata Podedworny and vice president of sales Sjoerd de Jong after the group’s lender, Consilium Investment Management, terminated its financial advisory agreement with the company.

Until replacements can be found, Panache managing director Michael Romer has stepped up as interim president and CEO.

“Panache is operating its business as usual,” Romer said. “Our distribution and logistics partners remain unchanged and our marketing agency of record remains in place. Sales support of the brands continues.”

Panache is currently reviewing the terms and conditions of the company’s debt and business strategy that would “ensure the long-term viability” of the group.

The group reported net sales of US$3.6m in 2013, up 12% on the previous year. However gross profit declined 0.4% to US$1.1m in the same period.

Last month the group announced the launch of the Old Grumpy Bastard (OGB) line of premium products, including an American whiskey, vodka, gin, white rum, dark rum and Tequila.

The product line is the first to be produced at the new Panache Distillery in New Port Richey, Florida, which was acquired by the group in September 2013 and has an annual production and bottling capacity of 650,000 nine-litre cases per year.

Work is currently underway to increase capacity to over 1.2 million cases.