UK: Poor Christmas wipes Blavod Wine & Spirits profits

By | 1 February 2010

A black Christmas for Blavod

A black Christmas for Blavod

Disappointing drinks sales during the Christmas period will severely damage full-year profits at Blavod Wine & Spirits, the company has warned.

Volume sales "slowed abruptly" to rise by only 1% in the three months to the end of December, the group's fiscal third quarter, Blavod said in a trading update today (1 February).

Discounting on rival brands caused Blavod to lose market share on some of its key products, which include Blavod Black Vodka, during the Christmas trading period.

A prudent credit policy also constrained sales in both the UK and in export markets, the firm added.

As a result, Blavod no longer expects a rise in profits and hopes to break even in its full-year, against profits of GBP185,000 (US$295,000) last fiscal year.

"Whilst this setback is very disappointing, the board believes that it is short term, and is confident of achieving a meaningful profit in 2010/2011," said the group.

Moderate price rises, new products and fresh marketing support for the Blavod brand will boost the firm in its new year, it said.

For Blavod's full trading update, click here.

For Blavod's H1 results, click here.

Sectors: Spirits, Wine

Companies: Blavod

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