Distil Share Price (DIS)

https://www.morningadvertiser.co.uk/Article/2019/04/30/How-much-is-rum-worth-in-the-UK-alcohol-market

Rum sales in the UK keep climbing which is great, but so does the completion - Bicardi has moved into this space quite aggressively.

Checked out LWCs website - they supply wholesale to pubs, clubs and bars throughout the UK.

They have over 200 rums and 350 gins. Unless you are established or get on their offers page it is difficult for smaller brands to compete.
Unfortunately can see the share price declining further - IMHO!!

IMHO Blackwoods is struggling to create a niche in the crowded Gin market. It's a great gin, but then Betamax was better than VHS and we all know what happened there.

To be a success a product needs to show year on year improvement and this is factored into the share price - once a growth stock stops growing the market can be ruthless - I hold a retail company that has just made £1.5m profit and is valued at £13m and is growing by 20% a year.

The gin market is still growing - see below. If Blackwoods is not that's a massive red flag to me. Red Leg is a great product and had great coverage but the rum market is smaller so it is important that Distil have a decent piece of other markets. It currently does not.

In the year ending 31 March 2018, UK gin sales rose by 28% in volume and by 33% in value to reach £1.5 billion, meaning that sales have more than doubled in value in five years (£696m y/e March 2013).

It's because Blackwoods Gin posted a massive 32% increase in volumes sales the prior year. I don't expect small and local stores to stock Distil products but all the large stores in my area have both Blackwoods and RedLeg on the shelves..

I guess we will see how they are getting on over the next several months.. and if the share price is still sub 2p I'll calm down.

There is always silver lining after storm. The forecast for the whole year is unchanged regardless of last quarter's drop in revenue. As long as Distil produces breakeven and remain cash positive every year, it will be regarded as positive aim listed company. Share price of Distil has been on the down side since micro fund manager Miton plc sold their stocks across the board (not just Distil) last year. It is matter of time that Distil's shares will go up when funds like Miton will start buying rising star like Distil plc or a deal with major USA distributorship or a large drink company acquires one brand or whole company.

I think DaveT you need to calm down and read the last few RNS's - sales are down and profits have flatlined - that's a fact.

On a P/E of over 30 this is not oversold.

Blackwoods has not performed well - fact (read the year end RNS). It is not in my local Tesco's (one large one medium) nor my local Asda. I believe Morrisons are it's biggest stockist. As I said I have seen it at Wetherspoons but at no other pub - chain or independent!! And even if it is in every shop and pub in the country based on declining revenues it appears people aren't buying it!!

Essentially Distil is a one brand company as the majority of its revenue and profit come from 1 product. How is the company going to grow using £160k profits??