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Spirits group Distil is bringing its vodka back to the US despite Donald Trump’s tariffs as it looks to fight back from a major downturn.
The AIM-listed supplier has agreed a new partnership with US distributor Aiko that will see its Blavod Black Vodka return to the US after several years. It was pulled during the pandemic after a previous distributor withdrew.
Distil is in the doldrums with its share price down almost 90% over the past year, fuelled by a profit warning last summer and an emergency funding in September. Its latest quarterly results in January reported a 59% fall in revenue.
Its plan to restart vodka sales in the US comes despite tariffs that will likely bump up its price for consumers. Shipments are planned to start by the end of June this year.
“From a planning point of view, we are assuming tariffs will remain in place for the foreseeable future,” said Don Goulding, Distil’s executive chairman. “Current levels are manageable, with a benefit across the supply chain should they be lifted.”
“We believe this to be good time to drive forward, and we’re excited to working closely with the Aiko team to build back this distribution.”
Distil’s struggles are due to shoppers buying fewer branded spirits, opting instead to either drink less or buy cheaper own-label products instead.
In January, it announced a partnership with Global Brands that will see the VK and Hooch owner distributing Distil brands across the UK and Ireland.
AIKO Importers specialises in premium wine and spirits with a distribution network across the US, Canada, and Puerto Rico, Distil said.
The week ahead
The UK’s unemployment and wage figures arrive on Tuesday.
On Wednesday, WH Smith reports first half results as the ONS gives the UK’s latest inflation figures.
And following up on Tesco last week, Sainbury’s takes its turn on Thursday to publish annual results. Deliveroo and Pernod Ricard will also give updates that day.
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