Distil PLC

Trading update

Driving Brand Engagement

Distil plc (AIM:DIS), owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka, Blavod Black Vodka and Diva Vodka, provides an update on trading for the first quarter of its current financial year.

Unaudited year-on-year first quarter (April - June 2023) results:

·    Revenues increased 206% from £119k to £364k year-on-year

·    Marketing investment decreased -72% year-on-year

o  Investment last year included costs associated with RedLeg TV commercial

Don Goulding, Executive Chairman, said:

"Reported Q1 revenues show extraordinary growth as we are lapping a suppressed Q1 in 2022 as a result of remodelling the business. However, the growth is encouraging as it reflects that we are on our way to rebuild from a stronger base despite a challenging economic environment which has suppressed the consumer spirits market.

The business remodel has given the team greater control of our marketing investment, and this quarter has seen us activate RedLeg Spiced Rum directly with consumers at two key UK consumer events, The Great Escape Festival in Brighton (80,000 attendees), and Taste of London in Regents Park (55,000 attendees).

The Great Escape Festival signalled RedLeg's return to the city that launched the brand. The activation gave us a platform from which to increase on-trade distribution, brand awareness, and target consumer trial across the city. Taste of London saw the full RedLeg range of flavours sampled by target consumers across the five-day event, driving revenue for the business. Consumer-facing events and engagement represent a key pillar for the business across our brands, and this will continue to be a focus throughout the year.

This quarter also saw the successful launch of the RedLeg e-commerce site which allows us to sell directly to consumers online, delivering a new revenue stream for the business. Over the coming quarter, the team will continue to test and develop a robust marketing programme and online-exclusive range of products and branded merchandise to grow this channel. Learnings will be implemented across the rest of the portfolio, delivering additional volume at attractive margins.

At Ardgowan, this quarter saw the team reach a major milestone with the delivery of the gin still. The still will be fitted and commissioned over the coming months and we look forward to distilling the first Blackwoods liquid at its new home in the near future. 

We're pleased that this quarter has begun to see the recovery from one-off impacts of the business remodel in 2022. The market remains uncertain in the economic climate, particularly in the UK due to the planned duty increases effective from 1 August, however we are working closely with our customers to ensure that our products are well positioned and marketed to minimise the effects on the business. Overall, the team is excited by the opportunities that the remodel has provided, and we look forward to driving business growth and value for shareholders throughout the rest of the year."

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a regulatory information service this information is considered to be in the public domain

About Distil

Distil 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 spiced rum, vodka, gin, vodka vanilla cream liqueur and are called RedLeg Spiced Rum. Blackwoods Vintage Gin, Blackwoods Vodka, Blavod Original Black Vodka, TRØVE Botanical Spirit and Diva Vodka.