CASTLE BRANDS BUILDS ON MOMENTUM

In its first quarter of fiscal 2008, Castle Brands U.S. volume grew 5% yoy to 44,723 nine-liter cases. The increase was led by a 28% growth in U.S. case sales of Boru Vodka and a 98% increase in volume of whiskey, which includes growth resulting from the addition of the McLain & Kyne bourbon brands.

The offsetting factors included a -6% decrease in rum sales following heavier distributor purchases at the end of Castle’s 2007 fiscal year in anticipation of price increases. Case sales of liqueurs also decreased 19% due in part to the discontinuation of certain low-margin cream products, says the company.

In addition, U.S. case volume growth was slower than the prior quarter largely due to higher than normal distributor inventory in advance of the March introduction of the redesigned packaging for Boru.

“Although we are delighted with the success to date of the Boru Vodka relaunch in the U.S. and have high expectations for its success internationally, we have several other initiatives underway, in both the U.S. and Europe, which are very important to the growth of Castle Brands,” said company chief Mark Andrews.

“These include a repackaging of our Clontarf Irish Whiskey, further emphasis on Gosling’s marketing, increased distribution of Pallini Limoncello and our continuing exploration of expansions to our portfolio.”