UK: Blavod losses narrow as sales leap

By just-drinks.com editorial team | 19 June 2006

Blavod Extreme Spirits has posted falling full-year losses as heavy marketing investment in the UK and the US boosted sales.

The UK-based spirits group today (19 June) posted an operating loss of GBP2.5m (US$4.6m), down from GBP4.1m the year before. Turnover soared 72% to GBP5.4m thanks to rising sales of the company's Players Extreme vodka range and Blavod black vodka, particularly in the US.

Blavod, which last year set up Diamante Spirits, a US venture with Japanese group Suntory, said the vehicle's first offering, Tequila brand El Diamante del Cielo had made an "encouraging start". The company also noted the sales growth of agency brands Mickey Finns liqueurs and Molinari Sambuca in the UK and Italian wine Baroncini in the US.

CEO Jeff Hopmayer said: "The popularity of our brands increased rapidly in fiscal year 2006, with sales growing accordingly. Operating results for the company also made significant positive improvements. The organic growth potential of our brands remains apparent; the first two months have started well, with trading up 63%, compared with April and May 2005."

Sectors: Spirits, Wine

Companies: Blavod, Suntory