By Scott Wright
DISTIL, the drinks company that is a major investor in the new Ardgowan Distillery being built in Inverclyde, saw shares close down more than 20 per cent last night after it reported an increase in first-half losses.
The company, which owns Blackwoods gin and vodka, said losses widened to £555,000 in the six months to September 30 after a range of “one-off impacts”, following a £45,000 reverse at the same stage last year.
Chief among those was a move to take direct control of its relationship with major UK retail customers, having previously worked on this with distributor Hi-Spirits.
Distil is a cornerstone investor in the £17 million Ardgowan project, which will restore distilling to Inverclyde for the first time since the Second World War.
READ MORE: 'Landmark' distillery will restore whisky making to Inverclyde
The original Ardgowan Distillery, based in Greenock, was built in the 1890s but was effectively destroyed during the Blitz in 1941.
Distil has provided a £3m convertible loan to the company developing the new Ardgowan distillery and has the option to invest a further £2m. The project will involve the creation of a distillery and visitor centre for Blackwoods gin and vodka, which is expected to open in spring 2023.
The Ardgowan whisky distillery is scheduled to open in 2024.
Distil, which owns RedLeg Rum and Blavod Black Vodka, said the uncertain economic outlook was “likely to see consumers shopping for true value in both on and off trade outlets, especially over the peak Christmas trading period and through spring next year.” But it added: “Our brands are well positioned in this regard, and we aim to maintain a strong promotional support programme across all trade sectors. We anticipate full year performance for the year ending 31 March 2023 to be in line with current market expectations.”
Executive chairman Don Goulding said: “The first six months of this financial year have seen major changes to our business model and the creation of a stronger platform for accelerated future growth. The key change year-on-year is our decision to take direct control of relationships with our major UK retail customers, and to move away from our previous distributor, Hi-Spirits, managing our entire UK trade.
"From mid-September we transitioned to a hybrid model, which sees direct sales to our largest retail customers supported by a new, highly effective distributor, Marussia Beverages Group, covering hospitality, wholesale, and other sectors where we are currently underdeveloped and have an opportunity for new growth. While the remodel has seen a one-off hit to the half year figures as we transition, we are confident that this move will put Distil in a stronger position.”
Shares closed down 0.23p at 0.82p.
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