Distil Regulatory News (DIS)

25 Sep 2006 07:03

Blavod Extreme Spirits PLC25 September 2006 Blavod Extreme Spirits plc ("the Company" or "Blavod") Trading Update and Board Changes Blavod Extreme Spirits plc (BES.L) is issuing this trading update to coincidewith the anticipated completion of the six month interim period ending on 30September 2006. Whilst final interim results can be affected by remaining ordersat the end of the period, it is expected that turnover for the company duringthe period April to September 2006 will have increased by approximately 53% overthe same period last year. Turnover in the UK is expected to show an increase of approximately 39%year-on-year. The Group's Blavod Black Vodka brand showed strong gains in theduty free sector and the UK domestic market continued to increase steadily. Turnover in the US is expected to show an increase of approximately 61%, withgrowth coming from the Group's Players Extreme Vodka and Blavod Black Vodkatogether with a contribution from the Group's Tequila Joint Venture. Joint Venture Our joint venture agreement with Suntory International Corporation, a USsubsidiary of Suntory Limited, Asia's leading producer of wine and spirits andone of the largest beverage alcohol companies in the world has had positiveresults. As a result of the consumer acceptance of our new tequila El Diamantedel Cielo, the brand would already be ranked in the top 10 most successfulpremium tequila launches in the US over the last five years, while only launchedin 37 states in the US. It is anticipated this brand will continue to deliverpositive benefits for years to come. Partnerships The Group continues to form partnerships with other drinks companies todistribute their brands in the UK and US. In the UK the Group distributes MickeyFinn, Fernet Branca, Cockspur, Molinari Sambuca and the wines of the Domaines deBaron Rothschild. The representation and distribution relationships have allmade positive contributions, with anticipated turnover from agency brands upover 45% versus the same period last year. These partnerships have made usefulcontributions and increased the Group's presence amongst key distributors. Inthe period further distribution relationships were added including the premiumNew Zealand wine Matariki. Board of Directors The Company's Board has made a decision to reduce its size to be more in linewith a Company of our size. To that effect, Fred Read, Richard Ambler and WilliePhillips have stepped down from the Board, but will remain in their operatingpositions within the Company. The Board will continue to have four Non-ExecutiveDirectors Colin Campbell, Lawrence Banks, Robert Levin, David Falk and twoExecutive Directors Jeffrey Hopmayer and Tony Murphy. Commenting on the anticipated results, Chief Executive Officer, Jeff Hopmayer,said: "We have continued to benefit from the growth of our core brands Blavod BlackVodka, El Diamante del Cielo Tequila and the Players Extreme range. Sales in theUK and the US have increased substantially. We expect the joint venture withSuntory to contribute strongly to the Group's profitability in the future. Our UK operation is currently operating at its best performance level in thelast five years which is ahead of management expectations and bodes well for theimportant second-half. Our results and the growth being achieved by our brands is encouraging,especially as we move into the important second-half selling season, which istraditionally the best trading period for the industry and representedapproximately 60% of our turnover last year. As I've said in the past, we are focused on making the right long terminvestments to grow our brands and create long term value for our shareholders." The company is expected to issue full six month interim results at the end ofNovember. Enquires: Blavod Extreme Spirits plc Jeff Hopmayer, Chief Executive 001 615 771 9111Tony Murphy, Finance Director 001 615 771 9111 Brewin Dolphin Securities LtdMark Brady 011 3241 0130Keith Williams 011 3241 0130 This information is provided by RNS The company news service from the London Stock Exchange