The UK spirits producer Blavod Black Vodka yesterday reported losses before tax of £581,000 for the full year, down from a loss of £1,155,000 a year earlier.
Chairman Allan Shiach said: “The benefits of increased sales, improved margins due to production efficiencies and reduced marketing and administration expenses resulted in a halving of our operating loss.
“Real progress has been made towards breakeven and we are confident that further progress will be made in the year ahead.”
Turnover in the year increased by 32% and sales of Blavod improved in almost all key regions. Furthermore, gross margins improved significantly as a consequence of production efficiencies, the company said in a statement.
Despite the adverse impact of recession in Brazil, which also affected competitors, international sales also showed significant gains. Progress in new markets such as Russia, Poland and former Soviet Union countries more than offset the effect of lower depletions in Brazil and look encouraging for the longer term.
In the US, the company was hit by the announcement that its distributor Branca Products Corporation has announced that it will close its operations at the end of June. This decision contributed to a reduction in exports of Blavod to the US.
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“However, the brand opportunity continues in the USA and the company is in advanced discussions to appoint a new importer with the ability to realize the brand’s potential in what remains the largest imported vodka market in the world,” the company said.
Looking ahead Blavod said sales for April and May have been satisfactory and it is are confident that further progress will be made in the year ahead.
