Distil Regulatory News (DIS)

30 January 2014

Blavod Wines & Spirits PLC

("Blavod" or the "Group")

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 Christmas trading covering the period to 31 December 2013.

Highlights of period October 1st to December 31st 2013

• Net revenues from owned brands increase 43% compared to equivalent period last year.

• Margins from owned brands continue to increase as sales of the Group's re-packaged brands develop in UK and Internationally.

• Group overheads reduced by 44%.

• Financing costs reduced by 74%.

• Group remains on track to achieve monthly break-even by early part of financial year. (FY15E)

After December 31st 2013:

• Distribution agreement signed for Spain.

• Launch of Blackwoods Botanical Vodka.

Current Trading

The Group has continued to trade strongly and remains on track to achieve monthly break even by the early part of the financial year. Revenues and margins have continued to rise with an increasing proportion of sales derived from its owned brands including Blackwoods Gin and RedLeg Spiced Rum.

Sales of Blackwoods Vintage Gin 40% and Blackwoods Limited Edition 60% have continued to grow since the packaging was redesigned in 2013 recording consistent month on month volume sales growth.

Sales volumes of RedLeg Spiced rum continue to grow as the brand is marketed in new territories and its popularity grows. During October, November and December the RedLeg "rum shack" went on tour to a number key locations including Birmingham, Brighton and London. This proved a very popular and cost effective way of increasing visibility and awareness of the brand as well as introducing it in an engaging way to its target audiences. Further 'pop-up' Rum Shack events are planned for the first six months of 2014.

Other brands being developed by the management team for re-launch in the next few months include Diva Vodka its super premium Vodka with Swarovski crystals packaged in the bottle and Jago's a vodka vanilla cream liqueur developed by Tom Jago.

Operationally, the Group has continued to reduce costs. Overheads are down by over 40% compared to the equivalent period last year due to the restructuring earlier in the year. Financing costs are down by over 70% largely as result of the successful equity placing in October.

Looking forward, the Group is financially robust and has a good pipeline of products to begin turning into successful, profitable international brands in the coming months. In January the company signed a three year agreement with The Water Company of Spain for the distribution of Blackwoods Gin and Vodka and RedLeg Spiced Rum. This will be the first time RedLeg is available for sale in Spain which is the single largest market for Rum in the world. Blackwoods Botanical Vodka is being launched this month.

Don Goulding, Executive Chairman of Blavod, commented today:

"This has been a very productive few months for the Group and we have made strong progress in increasing the market share of our own brands as well as developing a number of new concepts to the point where they can be launched later this year. The growth in our margins is particularly good to see as we continue to reduce our exposure to low margin business and focus on increasing shareholder value by developing our own premium brands and marketing these in the UK as well as developing new markets around the world".

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, Vodka Vanilla 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.blavodwinesandspirits.com

www.blackwoodsgin.co.uk

http://redlegrum.com

http://blavod.com