Shares in Distil plummet amid distribution delays

Shares in UK drinks group Distil, owner of Blackwoods gin, plummeted yesterday due to delayed distribution approval in the US.

Distil, owner of Blackwoods gin, has issued a revenue warning to shareholders amid delays to US distribution approval

As reported in The Scotsman, Distil has been seeking approval from the Alcohol and Tobacco, Tax and Trade Bureau (TTB) to distribute its brands in the country since July this year after securing agreements with distributors for its Blavod vodka and Blackwoods vodka and gin.

However, the group was forced to issue a revenue warning this week over delayed distribution approval, causing its shares to fall almost 20%.

“We do not foresee any refusal, however, we were planning to have these permissions in time to have shipments in market and distribution established prior to the peak trading period,” a statement from the group read.

Despite soaring sales at the end of 2013, Distil said it will not meet its forecasted revenues this year due to the delay.

Distil’s executive chairman Don Goulding told The Scotsman that the group “remains entirely focused” on developing its brands and distribution channels, having recently appointed distributors in Russia, Canada, Portugal, Germany, France and Italy.

Other brands in Distil’s portfolio include Redleg Rum, Diva vodka and Jagos Cream Liqueur.

Blavod Spirits changed its name to Distil in July this year to “better reflect the nature of our business”.