Importance Score: 45 / 100 🔵
Blavod Black Vodka Secures New US Distribution Deal Post-COVID Disruption
London-based spirits firm Distil, traded on the AIM, has announced a new distribution alliance in the United States for its Blavod Black Vodka brand. This strategic move marks Blavod’s return to the North American market after previous distribution channels were disrupted due to Coronavirus restrictions.
New Partnership with AIKO Importers
Distil, known for its portfolio that includes Red Leg Spiced Rum and Blackwoods Gin, informed investors of its latest agreement with AIKO Importers. This collaboration is set to provide Distil with access to a comprehensive distribution network spanning the US, Canada, and Puerto Rico. AIKO Importers also brings strong connections with major retailers, including Costco, enhancing market reach for Distil’s brands.
Navigating Import Tariffs
This new distribution agreement emerges as British drinks companies face recently implemented tariffs on all US imports. These levies impose a ‘baseline’ charge of 10 percent on imported goods. Don Goulding, Executive Chairman of Distil, acknowledged the tariffs, stating that the group is operating under the assumption they will persist for the foreseeable future. However, Goulding views these levies as ‘manageable’ at their current levels.
Recommencing US Shipments
Distil anticipates restarting US shipments of Blavod Black Vodka by the end of June. Goulding noted the potential for ‘benefit across the supply chain’ should these tariffs be removed in the future, suggesting a positive outlook for the brand’s profitability and market competitiveness.
Share Performance and Market Context
Distil’s shares experienced a surge in early trading, climbing 32.9 percent to 0.093 pence. Despite this recent upswing, the company’s shares remain down 28.5 percent for the year 2025. The company had initially benefited from increased at-home alcohol consumption during Covid-19 lockdowns, but has since observed a considerable decrease in sales.
Financial Performance and Share Value
Annual revenues for Distil have decreased from a peak of £3.6 million in 2021 to a low of £1.3 million in 2023. Although there was an improvement to £1.5 million in sales last year, the group’s share price has significantly declined, falling approximately 98 percent from a high of 3.05 pence in April 2021, reaching just 0.072 pence at market close on the previous Friday.
However, Distil experienced a substantial gain of over 75 percent earlier in the month following an investment by Dr Graham Cooley, the former CEO of ITM Power, indicating renewed investor interest.
Strategic Importance of US Market
Goulding emphasized the significance of this new distribution deal, stating, ‘Unlocking distribution for Blavod in the US represents a pivotal moment and a growth opportunity for the brand, which has previously achieved success in this market.’ He highlighted the substantial demand and brand recognition for Blavod in the US market, noting that vodka is the largest spirits category in the country, and the US itself is one of the world’s largest markets for spirits, according to IWSR Drinks Market Analysis.
Consumer Demand and Future Outlook
Goulding further commented on the consumer response, ‘We’ve received numerous requests for the product from both customers and consumers, illustrating strong brand awareness and market demand.’ He concluded optimistically, ‘We believe this is an opportune time to move forward, and we are eager to collaborate closely with the AIKO team to rebuild and expand this distribution network.’ This partnership signals a renewed push for Blavod Black Vodka in the crucial US market.