Distil sales plunge 26% in key festive period
RedLeg Spiced Rum owner Distil continued its double-digit sales drop in the last three months of 2025, which it blamed on stock build-up and a squeeze on consumer spend.
In its latest trading update, UK-based Distil saw revenue fall by 26% to £173,000 (US$233,194) for the third quarter (October-December, Q3) of its financial year. It followed a 20% sales drop in the six months to 30 September 2025.
The company, which also produces Blackwoods Gin and Vodka, saw its volumes into distributors fall by 39% in Q3.
On the other hand, volumes at consumer level rose by 36%.
Distil explained that the total sales downturn was due to existing stock holdings within the trade, with inventory acquired by distributors in the second quarter in preparation for the festive period.
The firm noted that retailers are holding a lower level of stock due to pressure across the supply chain.
On a more positive note, RedLeg managed to grow in the ‘buoyant’ grocery channel, boosted by a new pack that hit shelves in mid-December.
Don Goulding, executive chairman of Distil, said: “Sales of RedLeg by retailers to end consumers across major grocery, a key contributor to our business, increased 36% overall year on year in Q3, and 28% year on year in the four weeks to 28 December, despite a 4.1% decline in consumer spending on total take-home alcohol in the same period (grocery till data, Worldpanel).”
In the on-trade, value sales rose by 1.9%, but Distil warned of price hikes and the duty increase in 2025, alongside staffing costs.
The company cited a Barclays consumer spending report from January 2026, which found 39% of those surveyed said rising costs stopped them from going out as often as they would have liked in December.
Distil also highlighted a recent on-trade listing for Blackwoods with Buzzworks, a Scottish group of 22 bars and restaurants.
On export markets, Goulding said: “Global market conditions continue to be tough across the beverage alcohol industry, including spirits, as consumer confidence remains fragile.
“However, the quarter saw some encouraging wins for our business within this market. Export markets revenues increased 7.5x year-on-year, albeit from a small base, due to altered order phasing in our largest market.”
In the US, Distil suffered due to the government shutdown, which caused a delay in the approval of Blavod vodka for sale by the Alcohol and Tobacco Tax and Trade Bureau.
Distil is working with its new US distributor, Aiko Spirits, to get the product into the market and support its launch.
The company also provided an update on its strategic review, which included a fundraiser. The funds raised helped Distil to build stocks for Christmas trading, finalise a packaging revamp for RedLeg, set up an EU distribution solution and continue its build of a new brand home for Blackwoods.
“Given current marketing conditions, we are keeping our strategic options under continual review to maximise shareholder value,” the company said.
Distil warned that the medium-term outlook continues to be challenging, particularly with a further alcohol duty rise on the horizon.
It plans to open the Blackwoods brand home by the end of this month, with tour bookings to be announced soon.
The facility will open on the same site as Ardgowan Distillery in Scotland, which received millions of pounds in funding from Distil.
Ardgowan invested £5 million (US$6.7m) in ageing whisky stocks for Clydebuilt in 2025, with a further £4m (US$5.3m) planned for 2026.
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