DRINKS AMERICAS’ NET LOSS WIDENS IN SECOND YEAR

Drinks Americas (owner of Trump vodka) reported a net loss for the second year in a row due to “one-time non-cash costs.” Net loss for the fiscal year reached $9.4 million, or $0.14 per share, compared with a net loss of $5.8 million, or $0.10 per share, for the fiscal year ending 2006.

Revenue for the year was up 278% at $6.1 million, over the $1.6 million in revenue for the year ended April 30, 2006. Sales for the fourth quarter grew 65%. The company said its results reflect the seasonal shift from alcoholic to non-alcoholic beverages, with higher shipments of Newman's Own Sparkling Fruit Juices and Waters as the result of a national marketing expansion.

Gross margin increased 41% for the year due to higher mix, mainly by Trump super premium vodka. The company said it expects shipments of Trump vodka to reach 100,000 cases in the year to November. The company warned, however, that shipments of its new 1.75-litre version of Trump vodka were delayed as a result of “production issues related to the complexities of bottle engineering and design.”

Drinks Americas was formed about two years ago, with Trump vodka surfacing last year. The company says it now plans to focus on the Cognac and Tequila categories, along with premium and craft beers.