Distil Share Discussion Threads

[someuwin] 22/9/2016 07:25

Great news.

Which supermarket is it I wonder?

[someuwin] 21/9/2016 10:46

I like the bottle design. The words might not be immediately readable but in time the brand itself becomes the distinguishing feature.

Hopefully in time it will become iconic.

I would like to see them producing some promotional products using the design. i.e T-shirts and the like.

[berny3] 21/9/2016 10:05

Very interesting SUW. Good to see it has two bottle frontage and is at eye height as well.

When you begin to crunch the figures number of distribution outlets must be in excess of 2,000 in Supermarkets alone. Lets look at those figures a little more:

Tesco we know has 700 stores at time of the release with Redleg = 700
Sainsbury's assume 500 stores with Blackwoods Gin and Redleg Rum = 1,000
Waitrose assume 200 stores for Redleg = 200
Morrisons assume 400 stores for Blackwoods and Redleg = 800

On those alone that is 2,700 - add in Bookers, Majestic Wine and independent's there must be close on 3,000 outlets

Applying that to one bottle sold a week per store 52 bottles a year * 3,000 = close on 26K 6 bottle cases

Add in on trade sales and sales outside UK we must be approaching 30K cases sales per year. With market cap of 6.5mln that is equating to £215 per case value for the company. Do not know what the revenue is per case to the company I would make the assumption after duty £6 (£36 per case). That is 16.7% static return.

If the company can maintain a 20 - 50% sales growth rate. Current market cap is way to low and should at current rates be a multiple of where we are.

[yindag] 21/9/2016 10:03

The label is a shambles compared to the ones around it.
You can barely make out what it says, it should be instantly recognizable and clear.
Its a nice bottle but sub standard label.
They need to get it sorted and the same with the others.

[someuwin] 21/9/2016 09:54

Cheers for that Berny.

Yes I saw RedLeg in our local Bookers cash & carry last week...

[yindag] 21/9/2016 09:49

Redleg is also sold in Majestic Wine and Bookers.

[berny3] 21/9/2016 09:40

All a bit quiet here. Thought I would share as came across something a little interesting.

Redleg is now being sold in the following Supermarkets:

Sainsbury's


Tesco


Waitrose


Morrisons


Amazon


Blackwoods Gin is being sold in the following Supermarkets

Sainsbury's


Morrisons


Amazon


This should make first half results quite interesting as since this time last year distribution has increased across the Supermarkets from Just Sainsbury's to include Tesco, Waitrose and now Morrisons.

Looking at Kantar figures


Redleg Rum is distributed across 59.7% of the Supermarket audience
Blackwoods Gin 26.3%

These figures do not include Amazon and with their link up with Morrisons as distribution centers could further enhance sales.

All in all this is making things look quite interesting and showing that the number of distribution channels is increasing.

PIM and DC would be interested on your take of expectations on growth over last year and your take on potential figures for this half year.

[petersinthemarket] 15/9/2016 09:16

Hadn't noticed that Dante, but you are right. Perhaps if you emailed Dis. They are always helpful. pete

[berny3] 13/9/2016 15:43

DC - very interesting for FEVR I missed that boat as I thought it was over valued at circa £100 mln. They have done a great job with that brand and significantly distributed the soft drinks market.

We need to see figures from 6 months trading on Distil. What is positive is that the company is moving in the right direction, there is a clear growth and the UK market likes the niche brands which is good news for the company.

I am interested to watch other brand reactions when Redleg has been introduced. Currently in Waitrose almost every Rum brand has gone on offer. It was similar in Sainsbury and Tesco when introduced. That is positive to me as it shows Redleg is making waves.

Onwards and upwards.

[dietcoke197] 13/9/2016 13:42

Berny,

My view on FEVR was based on it having market leadership in its niche. It is true that others will now invade it's space and how it reacts remains to be seen.

I do feel that though that they retain a first mover advantage in their niche for a while at least.

I'm sure they will use that brand recognition to move into related products and grow in that way.

[dante17] 12/9/2016 17:45

I remember that note Pete but I can't find any references to RedLeg on Winebow's website (they do mention Blackwoods). Maybe they gave t started sales yet or sobering has changed?

[petersinthemarket] 12/9/2016 16:57

> Dante - A note by Progressive Equity Research on 22 June 2015 stated that The Winebow Group would be responsible for distributing Blackwoods and RedLeg in the US and Kanetz Trading for the Blavod brand.

[dante17] 12/9/2016 14:55

We already had a trading update of sorts in August re Q1, so we might not see anything further regarding numbers until October when H1 indications will be given.I'm expecting guidance on Blavod sales in the run-up to this Halloween and confirmation or otherwise of Jagos' relaunch. I don't think Diva is doing well and I don't see the point in continuing efforts in that direction.Does anyone know who is distributing RedLeg in the US?

[berny3] 12/9/2016 14:03

nice to hear from you PIM. DC (DietCoke) I have been considering your previous comment about Fever Tree and their pricing power. I note that now Waitrose are bringing out similar style tonic waters as Fever Tree. I disagree with you and think that it is harder to copy an alcoholic drink such as Redleg or Blackwoods as it is to copy tonic water such as Fever Tree.

What is interesting is both companies also have similar Gross Profit figures. I.e. on every bottle sold the proportion representing costs associated with that product are the same.

In the drinks business it is very hard to suddenly find away of putting a liquid in a bottle at a significantly different cost to the competition.

I would prefer to see 6 months results. Those last year were in October. So not long to we see actual figures for the first 6 months.

[petersinthemarket] 12/9/2016 12:42

Qtr1-TU-15sep2014
Qtr1-TU-15sep2015

[someuwin] 04/9/2016 22:56

Pushing RedLeg hard in our local Waitrose...

[glennborthwick] 03/9/2016 19:41

yep its all about the turnover not the profit for now, the branding and getting the brand in high profile supermarkets.

Diageo can buy it at a premium and be the one to make the profits on it.

[dietcoke197] 03/9/2016 14:12

There is no way whatsoever that DIS will make 500k this year. 50k is closer to the mark.

Having said that, it doesn't need to. Anything better than break-even would be a bonus. Once seen to be achieved, investors will start to focus a bit on brand values and we'll see a proper re-rating.


Even conservative prospective sale values for the main brands would value the company at over 7p a share, which is my target price after the 2016 results next March

[robbiereliable] 02/9/2016 22:13

Made 15% on FEVR, but it seems so overpriced. If Distil can indicate it's profits will be anything over 500k this financial year it is a sure buy.

[loftus16] 02/9/2016 14:48

££££

[the macallan] 02/9/2016 11:21

Other spirits makers seem to do okay. Just a small slice would do us...