Blavod Wines & Spirits, owner of the Blavod Black Vodka brand, has announced a loss for the past year despite a major increase in sales.
Sales rose by 40% from £5.96m to £8.32m for the year to 31 March – but the company still recorded a loss of £15,000. In 2009 the company had profits of £130,000.
The company blamed the slump in performance on the weakness of the pound and an “unfavourable mix of brands” in its portfolio. Blavod managing director Richard Ambler admitted the results were “disappointing”.
“Despite an encouraging 40% increase in sales value, the change in mix towards lower-priced brands reduced margins during a difficult trading year,” Ambler said.
“This year, price increases already partially implemented, regained distribution and the selective reduction in overheads will restore the company to profit.”
He added: “The launch of Blackwood's Gin in Spain and the US, and the repackaging of Blavod and good progress in the US, are particularly encouraging developments."
Blavod blames profits slump on rivals’ deals (1 February 2010)