RedLeg Spiced Rum proprietor Distil continued its double-digit gross sales drop within the final three months of 2025, which it blamed on inventory build-up and a squeeze on client spend.
In its newest buying and selling replace, UK-based Distil noticed income fall by 26% to £173,000 (US$233,194) for the third quarter (October-December, Q3) of its monetary 12 months. It adopted a 20% gross sales drop within the six months to 30 September 2025.
The corporate, which additionally produces Blackwoods Gin and Vodka, noticed its volumes into distributors fall by 39% in Q3.
However, volumes at client degree rose by 36%.
Distil defined that the whole gross sales downturn was on account of current inventory holdings inside the commerce, with stock acquired by distributors within the second quarter in preparation for the festive interval.
The agency famous that retailers are holding a decrease degree of inventory on account of strain throughout the availability chain.
On a extra optimistic notice, RedLeg managed to develop within the ‘buoyant’ grocery channel, boosted by a brand new pack that hit cabinets in mid-December.
Don Goulding, govt chairman of Distil, mentioned: “Gross sales of RedLeg by retailers to finish shoppers throughout main grocery, a key contributor to our enterprise, elevated 36% total 12 months on 12 months in Q3, and 28% 12 months on 12 months within the 4 weeks to twenty-eight December, regardless of a 4.1% decline in client spending on whole take-home alcohol in the identical interval (grocery until knowledge, Worldpanel).”
Within the on-trade, worth gross sales rose by 1.9%, however Distil warned of value hikes and the obligation enhance in 2025, alongside staffing prices.
The corporate cited a Barclays client spending report from January 2026, which discovered 39% of these surveyed mentioned rising prices stopped them from going out as usually as they might have appreciated in December.
Distil additionally highlighted a latest on-trade itemizing for Blackwoods with Buzzworks, a Scottish group of twenty-two bars and eating places.
On export markets, Goulding mentioned: “World market situations proceed to be powerful throughout the beverage alcohol trade, together with spirits, as client confidence stays fragile.
“Nevertheless, the quarter noticed some encouraging wins for our enterprise inside this market. Export markets revenues elevated 7.5x year-on-year, albeit from a small base, on account of altered order phasing in our largest market.”
Within the US, Distil suffered because of the authorities shutdown, which triggered a delay within the approval of Blavod vodka on the market by the Alcohol and Tobacco Tax and Commerce Bureau.
Distil is working with its new US distributor, Aiko Spirits, to get the product into the market and help its launch.
The corporate additionally offered an replace on its strategic assessment, which included a fundraiser. The funds raised helped Distil to construct shares for Christmas buying and selling, finalise a packaging revamp for RedLeg, arrange an EU distribution answer and proceed its construct of a brand new model residence for Blackwoods.
“Given present advertising situations, we’re holding our strategic choices underneath continuous assessment to maximise shareholder worth,” the corporate mentioned.
Distil warned that the medium-term outlook continues to be difficult, notably with an extra alcohol obligation rise on the horizon.
It plans to open the Blackwoods model residence by the top of this month, with tour bookings to be introduced quickly.
The ability will open on the identical web site as Ardgowan Distillery in Scotland, which acquired hundreds of thousands of kilos in funding from Distil.
Ardgowan invested £5 million (US$6.7m) in ageing whisky shares for Clydebuilt in 2025, with an extra £4m (US$5.3m) deliberate for 2026.
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