UK-based spirits business Distil has agreed a new partnership with distributor Aiko Importers to relaunch Blavod Black Vodka in the US.
The deal marks its re-entry into the US market.
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Blavod was first sold in the US “in the early 2000s” through a joint venture with Extreme Spirits, executive chairman Don Goulding told Just Drinks.
Distribution then switched to Kanetz Alcohol Imports Company, operating as Drink Dogg, around 2015. The group distributed the Blavod brand in the US until the Covid pandemic, when it itself stopped trading.
Distil was unable to confirm when exactly during the pandemic that Blavod left the US market.
Distribution of Blavod to the US should start before the end of the company’s first quarter, which runs to the end of June.
The brand will be sold mostly in the off-trade sector to begin with, “before moving into the on-trade”, Goulding said.
When asked why Distil had decided to re-enter the US with Blavod now, Goulding said the size of the vodka category in the country “represents a big opportunity for the brand”.
He added: “Having previously had success in the market, we receive regular requests from consumers seeking it out and so have been seeking the right distributor to re-establish and grow the brand in the right places, and in the right way.
“We view this as a good time to re-enter the market as, while lots of brands are affected by the uncertainty, we have a clear proposition and support behind the brand to make an impact.”
Commenting on the potential impact of US tariffs on its business in the US, Goulding said Distil was “assuming that the tariffs will remain in place for the foreseeable future”.
He added: “Current levels are manageable, with a benefit across the supply chain should they be lifted.”
The London-headquartered group, which also produces RedLeg Spiced Rum and Blackwoods Gin, does not sell its other brands in the US, but Goulding said the business had “ambitions to expand in this market, particularly with the likes of our Blackwoods Scottish gin and vodka range”.
In a trading update filed on the London Stock Exchange last month, Distil pointed to focusing on exports over the next three years, and “opening new markets” such as the US and “key emerging markets for core brands”.
Within the same filing, Distil announced plans to launch a strategic review of the company in order “to stabilise the business and drive long-term shareholder value”.
Considerations in the process could involve “exit options for non-core brands” and the “potential sale of unused intellectual property”, as well as looking for “near-term funding”, Distil said at the time in the trading update.
The Blackwoods Gin owner added it was “not actively considering an offer for the company”.
In the trading update, which included forecasts for its fourth-quarter and full-year results, the business said it expected revenues for the 12 months ending 31 March 2025 to decline 31% to £1.1m (then $1.4m), while volumes were forecast to drop 32%.
The spirits company also said it expected more positive results for its fourth quarter, with revenue forecast to grow 34% to £498,000.
In the stock exchange filing, Distil said it expected to see a return to growth in the next three years, supported by its distribution deal with Global Brands, inked earlier this year.
Since 14 February, Global Brands was given full distribution rights for Distil’s portfolio in the UK and Ireland.
Global Brands was appointed the distributor for Distil’s UK grocery, cash-and-carry and convenience channels in March last year, according to a stock exchange filing from Distil.
