Distil Share Discussion Threads

[petersinthemarket] 07/7/2022 16:04

A brief look around earlier today suggests to me that we have made an agreement with a large, complex, aggressive group. They have been growing strongly through acquisition and agency agreements for a decade. They have many internationally distributed brands of their own, although none that I have ever heard of. They also act as distributor agents for companies that everyone has heard of like Remy Cointreau, William Grant, Schlumberger.

They either own or co-operate with distilleries in several different countries in Europe and Asia, including Scotland. They have strong links in Switzerland, Germany and Austria. I smell the hand of Roland Grain in this somewhere, but despite an initial search, I have yet to find any published link.

The Marussia Beverages Group is owned by the Swedish billionaire Paulsen family and headquartered in Switzerland. Frederick Paulsen was knighted by the Queen in 2021. They are an international producer and distributor of spirits, wines and sakes, with a direct presence in 14 markets via 14 owned distribution companies and 16 production sites around the globe, creating high quality, innovative premium brands. It also markets its brands in a further 40 markets from a centralised sales and marketing office.

The group has a fully owned distribution network in the USA, the United Kingdom, France, Russia, Ukraine, Georgia, Switzerland, Austria, Germany, and the Netherlands and a network of independent well established importers in more than 40 countries worldwide.

The group believes it is under-represented in some spirits, including rum and plans to fix it by acquisition or by setting up its own production facilities in suitable markets.

The holding group are currently in deep discussion. With their rapid expansion the company believe they are approaching an important inflection point in their development. There is internal discussion about getting big versus staying small and agile and how best to take their business to the next level? The options are hands-on with a centralised management or a more decentralised organisation. Future aggressive growth is the only aim.

We are living in interesting times.

[petersinthemarket] 07/7/2022 12:06

hxxps://marussiabeverages.com/marussia-beverages-from-russia-with-love/

''Our objective is to create and build our own premium wines, spirits & sake brands with a unique selling proposition. We want to engage responsible consumers in a memorable and emotional experience, through education, digital content, hospitality and wine tours.''

I am at a complete loss to understand this. They aggressively buy and distribute a variety of alcoholic drinks. Where do we fit in that scenario.

Also, their foundation and profitability has been firmly based on Russia, as implied in the company name. This cannot be a good time to have links with Russia.

What am I missing?

[celeritas] 06/7/2022 11:11

Hopefully we can get tasters in the likes of Sainsburys, I'd have been through the lot by now.

[celeritas] 06/7/2022 11:10

Looks like great news to me, alas the general stock market isn't in the mood for positivity.

[haggismchaggis] 06/7/2022 10:19

"Founded in 2004, Marussia Beverages is a producer and international distributor of wines, sakes and spirits. In 2019, the company recorded a turnover of 250 million euros across all activities. The group has a presence in 12 different countries with 15 production sites and a distribution network of 12 subsidiaries. It produces and distributes its own portfolio of premium brands: Mamont Vodka, Mozart Liqueurs, Austrian Schlumberger sparkling wines, Château Mukhrani, Tamada, Old Tbilisi and Vismino (Georgian wines), Mossburn and Torabhaig Scottish whiskies, Mezan rum, Akashi-Tai sake, Hatozaki Japanese whisky and 135°EAST gin."


They also cover USA, so maybe FINALLY we will get USA Distribution going!!

"Since 1992, the team has launched and created powerful sales and marketing programs by collaborating with wine and spirit partners to build brands in the US market. Portfolio includes such brands as, Hatozaki Japanese Whiskies, Mozart Chocolate Liqueurs, Barenjager Honey Liqueurs, Mamont Vodka, Mossburn Scotch Whiskies, STROH Rums, Schladerer Fruit Brandies, Lenz Moser Wines, to name a few."

[haggismchaggis] 06/7/2022 09:43

I take it the distributor change idea came from RG. I wonder if he owns part of Marussia too?"Part of the Swiss-based Marussia Beverages Group, Marussia is the UK's leading artisanal spirits business..."It's nice to see DIS taking control and making changes that will hopefully boost DIS sales and profits, but the big return for investors still remains the sale of brands, a decade on we've not sold a single brand, so will we ever?

[celeritas] 06/7/2022 09:41

Buying below mid, those 2 trades are buys.

[petersinthemarket] 17/6/2022 17:07

The reporting of comparative reductions in Revenue and Gross Profit in our 2021/22 financial year has yet again caused predictable damage to the share price.

Although there is little transfer activity of any size in DIS shares, most smaller traders have taken the usual superficial view of events and sold, probably at a loss. Not surprisingly, all the major investors (owning more than 3%), who own 40% of the issued shares, see greater value in the company and are holding tight. And so are the other roughly 30%+ who own less than 3%, but 1% or more.

It is important to note that the distorted perception was due to a massive leap in Revenue and Gross Profit in the previous (2020/21) year to £3.616m and £2.1m respectively. This was plainly a one off event, caused by the effects of the Covid pandemic. It was widely reported that many suppliers of alcoholic beverages saw substantial increases in on-line purchases and home consumption due to the depressing effects of the lockdowns which began in March 2020. There was also heavy overstocking by suppliers who feared disruption to stock movements and raw material supplies, especially across national borders. All of this has gradually unwound during the last financial year, bringing business back towards a more normal level.

The impressive 2020/21 results were a useful bonus, but they should not be allowed to mask the underlying business trend, which is excellent. If a more logical comparison is made between the 2021/22 year and the 2019/20 year, it can be seen that Revenue increased from £2.441m to £2.942m and Gross Profit increased from £1.446m to £1.629m, increases of 20% and 13% respectively. In fact both of these key markers have shown useful increases year on year (except 2021/22) since before 2017/18, indicating that our business is still growing well.

It may surprise some to learn that DIS has only 7 employees, including Directors. This is largely due to the fact that liquid production and bottling and the distribution of our products is, at the moment, farmed out to reliable partners. The company is tightly and prudently managed and the addition of Roland Grain and Mike Keiller to the BoD is already adding substantial benefits. Production of gin and vodka liquids has already moved from the Midlands to Scotland in anticipation of the completion of our own distillery and visitor centre in Inverkip, near Glasgow, around the end of the year. We also expect to see a blended whisky later this year and a new malt whisky in cooperation with Ardgowan in 2026 (whisky distillery opening 2023). The connection with the Ardgowan site is likely to prove very exciting and productive in the next few years.

In the meantime, we have a strong and growing range of spirits, currently dominated by RedLeg, but with good support from gin and with Scotch arriving soon. Our home market still forms the major part of our business, with exports comprising around 15% of total Revenue, but Export markets are gradually reopening and our products are well accepted in several countries. For example, our gin is very popular in the Netherlands and Spain, RedLeg has sold well in Australia and our vodkas are appreciated in duty-free and eastern Europe. There are still major administrative issues at the UK border, but it is hoped that these will gradually ease, to allow exports to become a more important part of our business.

In summary, DIS remains of little interest to short term traders, but serious long term investors are firmly on board, confident that the company is healthy and well managed with a sound and growing future.

[haggismchaggis] 13/6/2022 17:33

Also listed in early 2021. I guess they did something else in August.

[petersinthemarket] 13/6/2022 16:48

Tks Haggis - I note it says on the back of the box that the tin mug is American!

[haggismchaggis] 13/6/2022 14:12

Peter,

It might be Blue Tree Gifts, see...

Red Leg Rum & Tin Gift Set - by Blue Tree Gifts

[celeritas] 13/6/2022 13:08

Miniature testers do help sales. It's normally the way I go before buying a big bottle, Whitley Neil Gin has done very well with it.

[petersinthemarket] 13/6/2022 11:48

I cannot find these, does anyone else have info?

''In August, we developed a partnership with a well-established national gifting company to launch a unique miniature gift pack securing national listings in major grocery and high-street retailers.''

[petersinthemarket] 13/6/2022 11:09

For RedLeg fans, you might be interested to know that the 1 litre bottle mentioned in the report is today available from Amazon at a bargain price (compared to the 70cl) of £23.80

Delivery cost is free and in 24hrs for Amazon Prime members.

[petersinthemarket] 13/6/2022 10:00

For anyone interested, you can find the analysis report from Progressive Equity Research under the Analyst Research heading on the Distil Plc website.

[haggismchaggis] 13/6/2022 09:05

The big number for me is the following, plus sales up 20% on 2020 numbers."Net cash inflow of GBP500k (2020: GBP204k) resulting in year-end cash reserves of GBP1.56 million (2021: GBP1.06 million)"

[gipps] 13/6/2022 08:10

Results out any thoughts ?

[petersinthemarket] 07/6/2022 08:54

Finals 14 June last year so we could see something next week.

[petersinthemarket] 03/6/2022 10:17

Thanks for the note Celeritas.

This article was copied from:


Posted on: 30 May 2022

Inverclyde Council planners have approved new designs for a landmark distillery and visitor centre at Inverkip.The Ardgowan Distillery facility at Ardgowan Estate, Inverkip, will feature a light-filled “modern Nordic long hall” using low environmental impact composite cladding, timber and steel materials.

It will incorporate a glass-walled ‘sky platform’ with views of the Clyde.
The revised plans for the Bankfoot site were submitted to Inverclyde Council in December. They supersede a previous design that secured planning consent in 2018.
Officials have now given permission for the new proposals, with Rebecchi Architectural appointed to support the process.

Their report states: “The proposed overall development represents a significant investment and will bring economic benefit through the main whisky distilling operation and it serving as a tourist attraction.

“The overall development is one which is appropriate for this green belt location and the amended design of the distillery building…is considered acceptable when considered against the relevant development plan policies.”

Ardgowan Distillery confirmed in June last year that the Inverclyde project would go ahead after it attracted financing of £8.4million led by principal investor Roland Grain and additional support from Distil Plc.

Mr Grain said: “My passion for whisky began as a teenager in Austria when I began to collect Scotch whisky and my wish is for this project to create the highest possible quality whisky and a lasting connection to the community in Inverclyde.
“Central to this is our innovative building - designed by leading Austrian architects Spitzbart and Partners.

“This very modern Nordic long hall is pointing skyward, symbolising resurrection and our rise from the ashes of the former Ardgowan Distillery, which burned down in the Greenock Blitz in May 1941, and also our ambition to become one of the top whiskies in the world.

“I hope it will stand out as a ‘cathedral to whisky’ and put this corner of Inverclyde firmly on the tourist map.”

Ardgowan Estate owner Sir Ludovic Shaw Stewart said: “This is a truly iconic and visionary design, one that is commensurate with Ardgowan Distillery’s aspirations to create a landmark visitor destination in Inverclyde.”

Distillery chief executive Martin McAdam said: “This project will be a major boost to the local economy -– both during construction and in operation. We estimate the distillery and visitor centre will create up to 47 new jobs within five years.
“Our goal is to build a world-class whisky distillery and visitor centre which will attract tourists and bring economic and social benefits to Inverclyde.”

This article also appeared in Inverclyde Now

[petersinthemarket] 03/6/2022 10:01

>Jay - multiple posts everywhere - waste of space - filtered