Trading Update

Blavod Wines & Spirits PLC ('the Company')

22 July 2011

Trading Update

The  Company announces  that in  its traditionally  weak first  quarter (to June
30th 2011), sales and losses were slightly below the Board's expectations.

The  Board periodically revises its forecasts. As  a result of its latest review
for  the current year ending 31st March 2012, it now expects the Company to fall
short  of  market  expectations  for  the  period. Although only 3 months of the
financial  year have  elapsed, principally  for the  reasons outlined below, the
Board expects the Company not to achieve break even in the year to March 2012.

The major reasons for this expectation are:

A   delay   in   achieving significant  re-listings  in  a  major  UK  retailer.
However since  the  quarter  end negotiations  with  the retailer have concluded
successfully for  the  second  half.  This  will  lead to an increase in monthly
profitability in the second half of the year coupled with an increase in working
capital requirements.

Delayed  introduction of new third party brands to the portfolio, although these
discussions are still progressing positively.

Accelerated  increase in  the profitability  of Blackwood's  Gin and  Diva Vodka
brands  resulting in a higher earn out  payable prior to completion of the final
purchase of Diva in May 2012 and Blackwood's in May 2015.

Financing

As  a  result  of  this  expected  shortfall,  and  the  likely  working capital
requirements  of the  re-listings, the  Company is  likely to  need to introduce
extra  capital to the business.  The Board is currently  exploring ways in which
this can be achieved.

Outlook

Whilst  this setback is disappointing in the  short term, the longer term profit
flow  resulting from the re-listings and the  continued growth of our own brands
is expected to come through in the second half of this year and onwards.



Don Goulding

Chairman



For further information, please contact:



Blavod Wines & Spirits plc

Don Goulding (Chairman) 0207 352 2096

Brewin Dolphin (Nominated Adviser)

Neil Baldwin/Luke Boyce 0845 213 4726







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Source: Blavod Wines & Spirits plc via Thomson Reuters ONE

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