Distil Share Discussion Threads

[petersinthemarket] 01/8/2022 18:33

It is interesting to note that, based on Diageo's report today, our BoD's decisions are definitely moving in the right direction. Diageo have managed to push through some price rises above inflation and the spirits sector is still growing strongly, despite a war, a pandemic, shipping hold-ups and glass and ingredient supply difficulties. They note a continuing trend away from beer and wine and towards spirits. Premiumisation also seems to be working. In 2020, Diageo bravely decided to invest in their brands and production facilities and it's paying off. Many of the comments in their report are reflected in our own plans. Proposed product range increases, a new and far more aggressive distribution policy, new state of the art production facilities in Scotland and enthusiastic backing from a much strengthened BoD. Early days for us, of course, and we are tiny compared to Diageo, but I look forward to seeing improvements in volume, revenue and bottom line as our plans fall into place during the remainder of the current financial year.

For those interested, you can find a lot more sector background on The Spirits Business.

[celeritas] 29/7/2022 14:22

Cheers, was sold out at my local Morrisons for £18 last week...

[gipps] 29/7/2022 12:30

Red Leg on special at £17 in my Sainsburys at the moment seems to sit quite comfortably amongst other brands.

[kaos3] 26/7/2022 15:34

my agenda is that you (that I read with respect) and others convince my self that I am wrong in the statement that RG is "using" DIS (at a slight costs to the others shareholders) for his personal goals that are not 100 % aligned with the other shareholders.

"He has no DIS staff and no DIS decision making authority." you said - but I see profound changes since he is around.

it is him imho that is driving the changes - changes like getting "him supported" by DIS investing into a small stake in distilery - when capital is needed in a small Co for its own DIS business purposes. financial or other rewards from this project are far away - as it is claimed to be a long term investment. illiquid too probably.

Distribution changed too

etc.

I see his hand despite what you suggest....

Otherwise I like DIS which has potential - so I am observing it... to buy back in. After I am sure about RG and the share price is right and the "remake" shows fruits ...

Again - I like DIS and I am just asking how the others see it on this specific issue (RG). I probably got all that there was to get on this BB atm. Thank you all

[petersinthemarket] 26/7/2022 11:02

kaos > Deliberate misquoting and misuunderstanding are unhelpful.

RG is a non-exectutive. He has no DIS staff and no DIS decision making authority. All decisions are joint DIS board decisions with any final decision from DG.

As for ''own agenda'' - I have one, thats why I'm here, and I'm sure you have your own agenda too. It's common sense. Why wouldn't everyone, including RG? In skilfully run company's, like DIS, such various agenda's combine for the common good.

If you are a holder or not, if you have a broader point to make, feel free to expand it. Some might find it of interest.

[kaos3] 26/7/2022 07:52

"RG does not control DIS" - I think he does - read 026

"Perhaps he does have his own agenda and his own interests" - exactly

only he has capacity to gain much more ....

[petersinthemarket] 23/7/2022 22:37

Quite right Haggis - RG is a non executive - he has no internal authority.

[haggismchaggis] 23/7/2022 16:17

Also, RG does not control DIS, so there is no way that his personal interests dictate the company direction. RG can put forward ideas backed up with intelligent reasoning based on vast sector or subject knowledge, but the BoD decides what is best for shareholders, and if RG's ideas do not materially benefit shareholders, and/or are not in line with DIS company policy, then the BoD won't approve them.

[petersinthemarket] 14/7/2022 11:04

Some folk should learn to read TU's properly and spend some time learning about the company. This is not a company to follow for a fast buck. DIS was stuck for some years with only DG to run it and he had to think of everything, and on a tiny budget. As a result of needing tight purse strings and consequently having only a handful of employees (including directors) that meant that of necessity many functions were handed to outside agencies. The last couple of years have seen big internal improvements. DG has generated a good product range, growing revenue and profits and a much strengthened BoD. Roland Grain was a welcome addition. He brought with him business experience, enthusiasm, cash and a broad range of contacts. Perhaps he does have his own agenda and his own interests, but aren't we all similar in that? In practice RG is a very importan man, but only one man in a very powerful team. Anyone actually serious about supporting DIS should consider the great range of strengths of each of the individuals on the Board. For many reasons, bringing distribution in-house is an excellent move. Once the Hi-Spirits agreement actually concludes, DIS will have much better control of it's own distribution, it's costs and it's own destiny.

[kaos3] 13/7/2022 11:41

what are the facts assuring that the sceptics like myself are wrong? that Mr Grain having most influential stake in DIS is not pursuing his own personal interests? DIS being just one of the stones in his broader mozaik used for his goals?

After the distilery investment (lots of capital with a very long term towards the "honesty and profitability outcome/proof") I sold - and I am still not assured to buy back. So far I am doing ok with my decision.

It might all be good and I might have taken the wrong decision - but - how do we know that DIS small PIs are not just carrying water for mr Grain?

[biggest bill] 13/7/2022 10:43

"Dis has always been one for investors with patience". You can say that again. The problem is that in the long term, we are all dead. I think most investors would like a return in their lifetime.

[haggismchaggis] 13/7/2022 10:12

It's not dreadful at all, you clearly do not understand what they are saying. Yes there's a delay as the business model changes, but there's nothing dreadful about it at all. The drop in revenue is simply because the existing distributor is not restocking (as they have loads, and DIS terminated their agreement), but with the new distribution coming online, those sales will not only be taken over by DIS, but more new outlets will start taking DIS products. Dreadful would describe a company going into administration, but DIS has no chance of doing that. DIS has always been one for investors with patience, either you accept that (as many of us do) or you invest elsewhere.

[kemche] 13/7/2022 09:44

Dreadful. Simply that. Nothing else.

[scepticalinvestor] 13/7/2022 08:16

Ooof. Bargepole - poor, long suffering shareholderd

[haggismchaggis] 13/7/2022 07:22

Well those results don't say a lot, apart from "nothing to see here, come back next year to see how we're doing"??

[waterloo01] 13/7/2022 07:14

I did point this issue out a couple of days ago.

[squibno1] 12/7/2022 16:20

Peter
Thanks for the informational posts.
It is good to see some proactivity at the company.

[waterloo01] 11/7/2022 12:42

Appreciate the comments. As posted at the time the change of strategy post Grains involvement are not a strategy I buy into.

[petersinthemarket] 11/7/2022 12:23

#10214 - Waterloo – Your comments are perfectly valid and I have no interest in persuading you, or otherwise, but I'll take a run at the issues you note. The commercial manager is a good move. It is loading on yet another extra salary cost to be paid for out of profits, but he should more than pay for himself if successful. Since he comes from the deposed Hi-Spirits, we must hope that he maintains good enough contacts to continue making sales progress until the formal distributor change-over occurs in October. The new distributor appears to be far more ambitious and aggressive than Hi-Spirits and 1 October, although a bit tight, should just about see the main push occuring in time for xmas/new year sales. This must obviously already be factored into this years production and distribution planning. We should also see them help us with some progress, at last, for sales in USA. I think the new distillery is an excellent idea and plainly came from contacts made by Roland Grain's efforts. DIS will have a new home and a visitor centre for it's gin/vodka later this year and the agreement with Ardgowan should give us a whisky blend this year, pucka malts in 3yrs time and a guaranteed minimum 10% of Ardgowan's output. We should end up with a 14% ownership share in the distillery with Don Goulding on their BoD as our spokesman. If you have been following events, you will know that Roland Grain's main interest is whisky. He has been collecting them for many years. He owns a major whisky outlet in Austria and also has a share in a company who distributes our products in Australia. He is the leading investor at Ardgowan and a Director on our BoD so imo he will continue to push his and our common interests on that front. My view is that there has been very much more announced during the last year than just appointing a salesman, as you put it. A very strong base is being built for a new phase in our company's growth. My only gripe would be that most of us want to see an improvement in the value of our holdings now and find the idea of waiting for the near future to unfold a bit frustrating. The share price seems to indicate that the market feels much the same but, I am sure that, at some time, it will wake up to the potential of the unfolding story here.

[waterloo01] 09/7/2022 16:37

Peter, many thanks. A few comments if you want them?

Yes about time to get a commercial manager focused on selling into the main retailers. It remains a very competitive space and they will need to spend to get listed. Normal practice, so OK.

The new distributor might well back the brands with more vigour so potentially good, but as that comes into play 1st Oct, till then sales will probably suffer as the old distributor has little incentive.

I've never got the distillery. It's high cost/risk to build and no track record. When will it be actually producing anything, let alone aged whiskey? Now that's one crowded market.

As for 'undistracted focus' well what have they been doing to date, and surely the complexity of building a new distillery will eat management time, so don't get that comment.

Where's Mr Grains finger in all this?

Sorry to be so negative, but it will take more than appointing a salesman to get me back in, but I would, if the story changes.

[petersinthemarket] 09/7/2022 15:06

The article below was published by the Spirits Business yesterday.

Much of the content was already known, but this time there is an exciting emphasis on remodelling Distil. Some might say about time too.

Other news found elsewhere concerns the new two-way tariff-free whisky sales agreement between UK and USA. With Ardgowan in the offing, it couldn't have come at a better time.

[haggismchaggis] 07/7/2022 19:54

Peter,For sure it's RG behind this. He must personally know the owners is my view. He may also have invested in them, but it's unlikely we will ever find out for sure.They can take Redleg and Blackwoods to the USA and instantly multiply the case sales with just basic distribution and a bit of advertising.My guess is Hi Spirits had gone as far as it could, so we needed to do something different to get to the next level. RG has probably got us a great deal, otherwise we would have gone elsewhere.We won't see upside from this agreement until the financial results this time next year show how effective it's been, although we could get a boost if they announce USA. distribution in the meantime.