Distil PLC JV & Collaboration; Update on y/end expectations (3975D)
19 February 2020 - 6:00PM
UK Regulatory
TIDMDIS
RNS Number : 3975D
Distil PLC
19 February 2020
19 February 2020
Distil Plc
Joint Venture & Collaboration; Update on year end
expectations
Distil (AIM: DIS), owner of premium drinks brands RedLeg Spiced
Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, Jago's Cream
Liqueur and Diva Vodka, today announces it has entered into a joint
venture and collaboration agreement ("Agreement") with British
Honey Company Limited ("BHC"), a distiller and infused spirit brand
owner based in the UK.
Under the terms of the Agreement both parties are contributing
an initial cash sum of GBP30,000 each toward jointly producing and
marketing a new range of branded botanical spirits and other
products. All Intellectual Property Rights in newly created brands
and recipes will be jointly owned by Distil and BHC and future
revenues will be shared equally by both parties. Distil's
collaboration with BHC will enable both parties to leverage their
complementary competencies to accelerate product innovation which
will benefit both the joint venture and their broader
businesses.
Both parties recognise the opportunity in accelerated innovation
within the spirit market, and will create new brands, liquids and
formats to increase participation in this growth sector. In
addition to the joint venture, the broader collaboration will
provide Distil with access to BHC's distillery and international
award-winning Master Distiller to ramp up innovation within the
Distil brand portfolio and produce high quality liquids that meet
consumer and customer trends. Distil will also assist BHC with the
marketing and distribution of BHC's own brands and provide greater
consumer and trade insight, utilising its proven product
development, marketing and commercial experience.
Initial new brand development work under the joint venture will
commence immediately and as a result it is expected Distil will
incur additional unbudgeted costs in the current financial year.
Consequently, management expect full year profit out-turn for the
current financial year to be ahead of prior year but marginally
below current market expectations.
Don Goulding, Executive C hairman, Distil Plc commented: "I am
very pleased to partner with BHC to facilitate an accelerated
innovation agenda and more nimble product development capability.
The joint venture will facilitate the creation and marketing of
exciting new products and will improve Distil's capability to
develop and refresh its own brand portfolio. This new collaboration
brings together complementary capabilities which will benefit both
companies and we look forward to communicating our progress in the
coming months."
For further Information:
Distil PLC
Don Goulding Executive Chairman Tel: +44 203 300 1877
Shaun Claydon, Finance Director
SPARK Advisory Partners Limited
(NOMAD)
Neil Baldwin / Mark Brady Tel +44 20 3368 3550
Turner Pope Investments (TPI)
Ltd (Broker)
Andy Thacker/ Zoe Alexander Tel +44 203 657 0050
About Distil
Distil Plc is quoted on the AIM market of the London Stock
Exchange. It owns drinks brands in a number of sectors of the
alcoholic drinks market. These include premium spiced rum, vodka,
gin, vodka vanilla cream liqueur and are called RedLeg Spiced Rum,
Blackwoods Vintage Gin, Blackwoods Vodka, Blavod Original Black
Vodka, Diva Vodka and Jago's Vanilla Cream Liqueur.
About British Honey Company
Launched in 2014, the BHC is famed for its award-winning fruit
and honey infused spirits, marketed under the Keepr's brand. Many
of the Keepr's spirits are infused with the BHC's proprietary
British Honey from its fully traceable apiaries. BHC's spirits are
distilled onsite in the company's specially customised still under
the watchful eye of international award-winning Master Distiller,
Jamie Baggott.
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END
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