Blackwoods Gin owner Distil has raised £650,000 (US$870,000) in funding to support the business during the festive period after lower than expected sales.
UK-based Distil, which also owns Blackwoods Gin and Vodka, said the funds would also be put towards production of limited edition stock, development of new line extensions and ready-to-drink products, and account listings in the on- and off-trade.
The £650,000 was raised by issuing 541,666,675 shares at 12p per share, with almost half of the funds coming from Grain and Dr Graham Cooley.
Grain is a company associated with Distil’s non-executive director Roland Grain, who has agreed to invest £200,000 (US$267,000) in the business, while Cooley has provided £90,000 (US$120,000).
Don Goulding, executive chairman of Distil, said: “This funding will support working capital and brand activation over the key trading period, October through December, and enable us to compete as we seek to expand distribution in 2025.”
Distil is also offering 183,333,200 new shares to raise an additional £220,000 (US$294,000).
The board decided there was a need for immediate short-term funding in August.
On 14 August 2024, the company issued a trading update after the business experienced lower sales than anticipated in the first four months of the financial year. It followed revenue growth of 15% in the 12 months ending 31 March 2024.
The board said: “In light of this, we have revised our expectations for the full year which, despite the disappointing performance year to date, still anticipate revenue growth versus 2023.”
Distil said the decline to the start of fiscal 2024 was led by an ‘extraordinarily challenging economic environment, as consumers are faced with ongoing inflationary pressures which are putting a strain on spending’.
The producer said this was worsened by poor weather in the UK, causing a drop in socialising.
After the company’s ‘softer than expected’ performance during the first quarter (April to June) and July, the business quickly moved to drive volumes across its brands, including an increase in promotional activity to boost awareness and trial, as well as securing key on-trade listings.
Distil has also invested millions of pounds in the Ardgowan Distillery in Scotland, which includes the build of a Blackwoods Gin facility.
Ardgowan Distillery broke ground on the first phase of its £20 million (US$24.6m) whisky distillery in November 2023 after almost seven years of planning. Production at the site is expected to begin by the end of 2024.
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Author: Nicola Carruthers
