• Losses deepen on currency rates
  • Sales rise as form focuses on key brands
  • Group signs Drink Pie JV deal 
Castle Brands signs Drink Pie JV

Castle Brands signs Drink Pie JV

Castle Brands has reported heavier losses in the first quarter of its fiscal year, as unfavourable currency offset a rise in sales.

Castle Brands said yesterday (12 August) that net losses for the three months to the end of June were US$1.74m, versus losses of $0.6m in the same quarter of last year.

The developer and marketer of alcoholic drinks, including Gosling's Rum and Jefferson's Bourbon, said that a $1m currency gain and a $0.3m non-cash gain helped it to contain losses in the first quarter of last year. Net sales for the first quarter of fiscal 2011 rose by 4% to $6.1m.  

"We remain focused on growing our premium brands and supporting our agency relationships while controlling costs, and I am pleased with the progress we are making," said president and CEO Richard Lampen.

"We continue to focus sales and marketing efforts on our more profitable brands such as Gosling's rum and Jefferson's bourbon," said Castle's chief operating officer, John Glover. He added that the company continues to seek agreements with drinks brand agencies.

Earlier this week, Castle said it had agreed to form a joint venture with Drink Pie to manage the manufacturing and marketing of Travis Hasse's Original Apple Pie Liqueur and Cherry Pie Liqueur. The venture will have global rights to the brands.

Under the terms of the agreement, Castle Brands will be paid a per-case fee and will acquire an increasing stake in the brand's value as volume increases. "Distributors in several new [US] states have already agreed to take on the brand," said Glover, without naming which states.