Distil (AIM:DIS) said it is restructuring the distribution of its portfolio of spirits brands after a disappointing Christmas.
Revenues decreased 59% to £233,000 in the period October to December with volumes down 56% and gross margins six percentage points lower.
Don Goulding, AIM-listed Distil’s executive chairman, added: "Market conditions continue to be tough across the spirits industry, particularly in the UK, and our business has suffered as part of this, with third-quarter sales declining by the same rate as reported in the interims.”
Customers have been reducing stock cover, he added, while retail sales were suppressed as people switched to ‘longer drinks’ such as beer and cider.
As a result, Global Brands, which has been producing and successfully selling the RedLeg ready-to-drink can since 2019, will now handle the whole suite of brands.
Shares fell 29% to 0.08p.