Published on: June 22, 2015

Delays in US approvals hinder progress

FY15 has seen Distil complete its strategic transition from a distributor of third party brands to a value-added developer of premium spirit brands, including its name change to Distil from Blavod previously. Distil has reported a welcome 26% reduction of its operating losses, held back by circumstances beyond its control. First, unexpected delays in acquiring the necessary US regulatory approvals have prevented the group from selling its core brands into that key and substantial market. And second, macro-economic conditions in Eastern Europe, and in Russia and Ukraine in particular, have resulted in a large volume decline in the sale of its black vodka brand, Blavod. These two factors have overshadowed strong progress elsewhere of its core brands, especially in the UK, where several important new listings have been gained.