Distil Share Discussion Threads

[berny3] 20/8/2020 13:19

Currently 4th and 9th on Amazon best sellers for the Rum


Pineapple now available in Tesco

[petersinthemarket] 18/8/2020 20:46

Welcome on board Daz, nice extra buy.
By the way, we already have a tv star - Sarah Kingsbury.
Sunday Brunch - perhaps not universally known.
Will she do for a starter.
If not, how about the AbFab stars?
Not sure we can afford Madonna.

[daz1712] 18/8/2020 16:23

Perhaps can get a Hollywood A star celebrity to buy in and take the North America rum market?😀 Never know for sure so took another 58k 🥃

[berny3] 18/8/2020 14:48

Just to give an idea on the news that Waterloo picked up on. case sales of Aviation Gin back in 2017 were reported as follows

Owned by craft spirits importer and marketer Davos Brands, Aviation is a small, growing player in an otherwise static gin market. The Portland, Oregon-produced alcohol shifted an estimated 15,000 cases in 2016, according to Beverage Marketing Corporation’s DrinkTell database. That is thought to have increased 20% to some 18,000 small batch cases last year.

18,000 cases in 2017

Estimate case sale Distil 2019: £2.4mln revenue divided by estimated £6 revenue per bottle sale = 33,000 case sales

Avaiation brands deal £460mln
Distil market cap: £6.7mln

No wonder we are being accumulated at such a low price.

[haggismchaggis] 17/8/2020 15:55

The current trajectory is not following the stated core company investment profile of building and selling brands. We've not sold one brand in all the time DG has been here. Maybe a new fresh look at the business and new tie ups and getting into other big markets is what is needed to create genuinely worthwhile investor returns.

[berny3] 17/8/2020 15:09

Pete,

ELLC lost £1.2mln last year. Had to raise £1.5mln in equity in 2019 and £1.5mln in 2020. That is where Distil was under RA. Not a place I would want to return to.

Distil, has no debt and is profitable with a brand that is the fastest growing brand in its sector since its launch. I would be very nervous having RG join the board as his motives are unlikely to be aligned with the current trajectory of the company under DG.

[petersinthemarket] 17/8/2020 14:59

#8530 Yes, agreed Bernie. Rather than a t/o bid i was really only pondering a business tie up. DIS have excellent distribution and a great rum. ELLC have a distillery. We know DG has plans for further new DIS products and is yet to launch something under the Mardi Gras label. Becomes even more interesting if RG somehow found himself as a Director of both companies. He is also a Director of a major spirits retailer in Austria and a distillery in Australia. It's even plainer now that RG has some plans for the UK, even if we don't know the detail of that yet. Time will tell.

[waterloo01] 17/8/2020 14:45

According to the Distilled Spirits Council, distillers sold nearly 10 million 9-liter cases of gin in the United States in 2019, generating $918 million in revenue, a 3% rise over 2018.

Aviation American Gin grew volumes at over 100% in 2019, adding the highest number of cases and contributing 40% of super premium gin segment growth in the United States, Diageo said in a statement.

[petersinthemarket] 17/8/2020 14:09

well spotted Waterloo-I'll take a proper look later
In the meantime do you happen to know what the buy multiple was?

[berny3] 17/8/2020 14:06

Pete,

ELLC as a company does not look to be in a good financial position.

I can see Distil being a good asset for ELLC to acquire but Distil is a good asset for many firms to acquire. As you have rightly pointed out previously.

Interesting times ahead.

[waterloo01] 17/8/2020 13:32

Something like this ....


Aviation American Gin is an American style gin crafted with a blend of botanicals, with subtle juniper notes, delivering a smooth balanced flavour profile. The brand has thrived under the leadership of its majority owner, Davos Brands, and the creative direction of co-owner Ryan Reynolds, who will retain an ongoing ownership interest in Aviation American Gin. Through this acquisition, Diageo is also acquiring the other brands in the Davos Brands' portfolio consisting of Astral Tequila, Sombra Mezcal and TYKU Sake.



The total consideration is up to $610 million, which includes an initial payment of $335 million and a further potential consideration of up to $275 million based on the performance of Aviation American Gin over a ten- year period. This reflects the brand's current growth trajectory and expected upside potential.

[petersinthemarket] 17/8/2020 12:51

It's been an interesting morning and it's dragged a few more buyers in. If it carries on we might have to have a ''no known reason ....'' RNS from DG.

If RG has spoken privately to DG then they don't legally need to tell us as long as DG has not divulged any market sensitive information.

If he chooses to, RG has enough shares now to force a formal item onto the coming agm whether the board like it or not. If he did so, we would all at last know if anything is going on in the background.

Some may remember that I reported a couple of months back that RG had been appointed as a Director of the East London Liquor Company Ltd (ELLC) in June.

ELLC have their own distillery, which would be very useful to DIS, especially as they had to pull out of the BHC deal (with own distillery) earlier this year.

If DIS did suddenly come into play, I would not be at all surprised to see one of the bigger companies also joining in.

Speculation is great fun, but it really does feel as if things may be livening up.

[waterloo01] 17/8/2020 12:36

All depends on what Dom's intentions are. I assume his intention is to build it to the point that it gets acquired.

[haggismchaggis] 17/8/2020 12:33

How much stock is in the hands of private investors? He's not going to get enough for a cheap takeover, as too much held by the big shareholders and long term PI's that won't sell cheap..Does make one wonder what his plan is.

[berny3] 17/8/2020 12:26

Pete, it begs the question what is RG's intentions. He can not be just acquiring for fun anymore. There has to be a time he makes a move. I think we are in a pretty strong position now. Price is being under written by RG's increase in his stake.

[the_real_mr_big] 17/8/2020 12:12

"Still surprised he managed to find 5mln shares."

We just had a temporary dip driven by net sales of about £40k's worth of stock in the last couple of weeks if my memory serves me right.

[berny3] 17/8/2020 12:10

Correct - JBER do not want to play the game on the Bid at the moment. JBER are Joh. Berenberg, Gossler & Co. KG. They only recently took on the market making role with DIS.

The trade could have been running for sometime. i.e wanting to pick up another round figure 5,000,000 and it is worked in the market.

No corresponding sale RNS yet so assume open market

[petersinthemarket] 17/8/2020 11:57

Agreed Bernie
I see JBER still dragging their heels a bit, but the rest have fallen into line.

I'd like to know where RG got his 5m - I doubt anyone on here sold.

[berny3] 17/8/2020 11:53

Pete not surprised to see this move after news this morning. Still surprised he managed to find 5mln shares.

spreads now are
1.20 -1.50
1.20 -1.50
1.20 -1.50
1.00 -1.50
1.20 -1.50

Pretty firm on both bid and ask

Interesting times ahead

[the_real_mr_big] 17/8/2020 11:48

Wow. Every time I say "DIS shall rise again" she rises.

[petersinthemarket] 17/8/2020 11:21

Interesting range of spreads Bernie.
Surely all are going to have to agree a raised bid soon.
Can't believe anyone would want to sell at 1.00 or near.

Are you buying in yet Daz?

[berny3] 17/8/2020 11:03

CFEP 1.20 - 1.50
PEEL 1.00 - 1.30
WINS 1.20 - 1.40
JBER 1.00 - 1.50
SCAP 1.00 - 1.30

With RG taking another chunk - things are looking interesting here now. It creates a good base.

[haggismchaggis] 17/8/2020 10:49

RNS, another big chunk hoovered up by Roland Grain..In other news, Daz still talking out of his bottom as always.

[chinese investor] 17/8/2020 10:46

Grain, like me, is BACK !

[gleach23] 17/8/2020 10:45

Nice to see available stock reducing this morning with some buying coming through just under the quoted Offer....hopefully the start of a next leg up