SHARE PUNT OF THE WEEK
WHO IS IT? Based in London, Distil owns a range of gin, vodka and liqueur brands including RedLeg Spiced Rum, Blackwoods Vintage Gin and Jago’s Vanilla Cream Liqueur.
The firm makes all its own spirits and is working to enter them into premium markets around the world through arrangements with local distributors.
WHAT’S THE LATEST? Earlier this month, shares in Distil soared after the firm announced that revenues had grown by 61pc year-onyear between April and June, boosted by particularly strong sales of its gin and spiced rum products.
Last month, the firm reported its maiden annual profit from its own brands, driven by an increasing presence in supermarkets and pubs across the country.
The group has also seen sales of its Blavod Black Vodka increase in Eastern Europe.
Executive chairman Don Goulding said the results seem to suggest that premium spirits are continuing to outperform the overall spirits market. WHO BACKS IT? The firm has the backing of large UK asset managers Miton Asset Management and Brewin Dolphin, which own 10pc and 6.1pc stakes respectively.
The largest individual investor is Goulding, who owns a 2pc stake. He is a veteran of the drinks industry, having held a variety of senior roles at Diageo, Smirnoff and Tanqueray Gordon during his career.
WHY SHOULD YOU INVEST? Analysts at Progressive Equity Research said the firm is capitalising on the continued growth of premium spirits – as seen by the unstoppable rise of gin recently.
With Distil citing strong growth in its gin and spiced rum products, it looks well positioned to take part in the growth of this market.
Its shares are up by 151pc so far this year, and this could continue if the firm gains the support of even more supermarkets, bars and pub chains. …AND WHY YOU SHOULDN’T Distil has only fairly recently begun to recover from years of very low valuations.
Although it is enjoying the spirits wave that is also boosting larger peers such as Fever-Tree, who’s to say that this can’t be taken away as easily as it came about.