Drinks Americas Holdings, Ltd. (DKAM)

[Fishing at Surfside]

Not sure if this was posted already....

Times Online January 02, 2007

Blavod nurses margins hangover
Rhys Blakely
Blavod Extreme Spirits, the Aim-listed drinks group, today unveiled a 61 per cent increase in first-half revenues but revealed that growth has come at the expense of lower margins, especially on its Blavod Black Vodka brand.

Total sales for the six months to September 30 came in at £3.5 million, up from £2.2 million a year earlier. The group posted a pre-tax loss for the half-year of £1.7 million, compared with a loss of £1.6 million a year earlier.

Gross profit margin fell to 28 per cent, from 34 per cent, following heavy promotion of Blavod Black Vodka.

The group also updated on its announcement of November 28, confirming that discussions on a possible all-share offer from a Nasdaq-listed suitor are ongoing. It said a further announcement will be made in due course.

In November, Blavod said that if offer were made "it will have a value of a minimum of 17.97p per share". Shares in Blavod Extreme Spirits were flat at 13p in morning deals today, valuing the group at about £9.3 million.

At the time, investors speculated that the offer may have come from Drinks Americas, which specialises in personality brands such as Donald Trump’s Super Premium Vodka and Willie Nelson’s Old Whiskey River Bourbon.

While Blavod is best known for its eponymous black vodka, the key attractions for a predator would be its Players Extreme spirits range and its tequila joint venture with Suntory, the Japanese drinks group.

For more information on the company click here.

Jeff Hopmayer, the chief executive, said in a statement that measures have been put in place to correct the fall in margins this in the second half of the year, adding that UK orders for the company’s key Christmas holiday period were likely to have been significantly ahead of last year’s levels.

http://business.timesonline.co.uk/article/0,,9065-2527124,00.html