Distil Regulatory News (DIS)

13 September 2013

Blavod Wines & Spirits PLC

("Blavod" or the "Company")

Trading Update

The Board of Blavod Wines & Spirits plc (AIM: BES), owner of premium drinks brands including Blavod Black Vodka, Blackwoods Gin and Vodka and RedLeg Spiced Rum, is pleased to give an update on trading for the 5 month period to August 31st 2013.

Highlights

Operational

· Contribution from owned brands continues to increase.

· Strong growth from double gold award winner RedLeg Spiced Rum.

· Completion of acquisition of Blackwoods brands.

· Redesign of Blackwoods premium 40% Gin brand completed and launched.

· Strong pipeline of owned brands being developed.

· UK Third party distribution agreement for Blavod brands working well.

Financial performance year on year

· Operating costs reduced by 13% including full redundancy costs.

· Financing costs reduced by 59%.

· Gross profit from own brands up by 58%.

Current Trading

Since the end of the financial year in March, the Company has made progress on a number of fronts including continuing to reduce the costs that were holding back development of its own premium brands. In May, it was announced that the Company had signed a three-year distribution agreement with Hi-Spirits Limited covering UK and Ireland and this allowed the Group to rationalise its own operations, reduce headcount and to focus on the development of owned brands. As a result of these changes, higher margin owned brand revenues have continued to increase during the year.

RedLeg Spiced Rum, launched in 2012, continues to show impressive growth in sales both in the UK and overseas. In March it fulfilled a significant international order for multiple retailer Woolworths in Australia, where it has 450 BWS stores (beer, wines & spirits) and 175 Dan Murphy liquor stores. We have just received a further similar sized order, this is very encouraging for the future. RedLeg also won double gold in its category at the prestigious San Francisco World Spirits Competition in April 2013.

Also in May, the Company completed the acquisition of the Blackwoods brands, including Blackwoods Gin (40% and 60%) and Vodka, Jago's Cream Liqueur and Diva Vodka. Since then, the Company has begun the process of redesigning these brands in preparation for their re-launch onto the market. The first of these, Blackwoods 40% Gin, was re-launched in August 2013 and has been very well received. Blackwoods is currently stocked in a number of on-trade outlets as well as UK grocery multiples including Tesco. This important retailer has decided to increase the distribution of Blackwoods from 192 stores to 566 effective end of September.

Blackwoods Gin 60% and Blackwoods Vodka have also been repackaged and roll-out of the new design will commence in October.

Looking forward, the Company is now redesigning its other brands - Jago's and Diva - and expects to reintroduce them into the market in the coming months.

Annual General Meeting

The 2013 annual general meeting will be held at the offices of Ronaldsons LLP, 55 Gower Street London WC1E 6HQ on 30 September 2013 at 12pm. The notice of AGM is also available on the Company's website: www.blavodwinesandspirits.com/investors/documents

Don Goulding, Executive Chairman of Blavod, said:

"We have made significant changes to the Company both in terms of changing the business model and rationalising the fixed costs that were holding back its progress. This process is close to conclusion. At the same time we are beginning to see the benefits of developing our own brands, such as RedLeg and Blackwoods.The Board remain focused on reaching profitability and the first step is to achieve monthly breakeven, this is targeted for the early part of next financial year."

For further information please contact:

About Blavod

Blavod Wines & Spirits plc is quoted on the AIM market of the London Stock Exchange. It owns drinks brands in a number of sectors of the alcoholic drinks market. These include premium Vodka, premium Gin, Vanilla Vodka Cream Liqueur and Spiced Rum and are called Blavod Original Black Vodka, Blackwoods Vintage Gin, Blackwoods Vodka, Diva Vodka, Jago's Cream liqueur and RedLeg Spiced Rum.

www.blavoddrinks.com