US: Higher marketing costs weigh on Castle

By | 13 February 2007

US spirits group Castle Brands has seen quarterly losses inch up on the back of increased marketing costs.

The company, which sells brands including Boru vodka and Gosling's rum, has posted a net loss of US$3.7m for its third quarter to 31 December. The result follows losses of US$3.6m a year earlier.

Sales rose 0.3% to US$7.4m, Castle said, as case sales rose 6% to over 91,600 nine-litre cases. Sales in the US jumped 8% thanks to strong growth from Boru vodka, which saw case sales leap 46%.

CEO Mark Andrews said he was "pleased" with how the business is developing. He said: "We are pursuing several initiatives to increase international sales growth in the future.

"In the last year, we have ceased distribution of certain low-margin Irish cream products. We believe, however, that this change will allow us to focus on higher-margin liqueurs going forward."

The Castle portfolio includes Brady's Irish cream liqueur, Clontarf Irish whiskey and Pallini limoncello, an agency brand it distributes in the US.

Sectors: Spirits

Companies: Castle

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