UK spirits maker Distil just named a seasoned industry hand as its first dedicated chief executive. The move signals a fresh push to steady the ship after months of sliding sales and urgent funding warnings.
David Smith starts August 17. He arrives with more than 25 years in the drinks business. That includes five years running English whisky producer Fielden as both chairman and CEO. Before that he spent time at Diageo helping launch ready-to-drink products. He also built export brands at West Indies Rum Distillery. His brief: drive growth in a portfolio that already shows innovation but has struggled with revenue.
Don Goulding, the executive chairman who helped create RedLeg Spiced Rum and steered the company through the pandemic, retires August 14 after 16 years. (TipRanks, July 2026). Philip Naughton, who joined the board earlier this year, steps into the non-executive chairman role the same day. The company plans to add another independent director to strengthen governance.
“We are strengthening the leadership team by separating the executive chairman role and CEO roles,” Goulding said in the announcement. “David brings industry experience and a strong track record of building premium drinks brands, while Philip has already made an excellent contribution since joining the board earlier this year.” (Just Drinks, July 15, 2026).
Smith sounded equally bullish. “I have been aware of Distil for many years and I’ve always been very impressed by their levels of innovation and the quality of their products. Their portfolio has wide consumer appeal and is positioned well for growth against the current trends around affordability.”
Distil owns a stable of distinctive labels. Blackwoods gin and vodka. Blavod Black Vodka. RedLeg Spiced Rum. These sit at the intersection of premium quality and accessible pricing. Yet results have disappointed. In March the company warned of an “immediate short-term” need for funding. Fourth-quarter revenue came in significantly below forecast. Full-year sales would fall materially short of market expectations. The pre-tax loss would exceed projections. (Yahoo Finance, July 15, 2026).
The first half of fiscal 2025 told the same story. Revenue dropped 20 percent to £313,000. Operating loss narrowed slightly to £587,000 from £622,000. Net loss improved 8.1 percent to £510,000. Numbers like these leave little room for error in a competitive category.
But. Change is already underway. On July 13 Distil appointed Fortitude Drinks as its new UK distributor. The switch takes effect next month. It ends the existing deal with Global Brands. Management also eyes greater export activity. A strategic review launched last year continues to shape priorities. (Drinks Intel, July 16, 2026).
Smith’s arrival marks the first time Distil has split the top roles this way. For years Goulding combined chairman and de facto chief executive duties. The new structure gives the CEO room to focus on operations, brand building and international expansion while the chairman handles board oversight. Industry watchers see the shift as standard practice among more mature listed spirits groups. Distil, though small, now adopts that model.
Smith knows the territory. At Fielden he oversaw development and commercialization of English whisky. At Diageo he gained exposure to large-scale marketing and innovation pipelines. Those RTD launches taught lessons about speed to market and consumer trends. Export work at West Indies Rum sharpened his eye for building brands outside the UK. All three experiences line up with Distil’s current needs: innovation, affordability focus and growth beyond domestic shores.
Investors reacted with modest interest. The shares trade on AIM. Volume remains thin. Yet the appointment removes uncertainty around leadership. Goulding’s retirement had been telegraphed. The question was who would replace him in the day-to-day role. Smith answers that question with credibility.
Challenges remain. The broader premium spirits market faces pressure from cost-conscious consumers. Inflation hit bars and retailers hard. Many buyers traded down to private label or lower-priced alternatives. Distil’s emphasis on “wide consumer appeal” and “affordability” acknowledges that reality. The portfolio must deliver perceived value without sacrificing margin. Smith will likely examine pricing, pack sizes and promotional tactics early in his tenure.
Distribution change offers one immediate lever. Fortitude Drinks brings fresh relationships across the UK on-trade and off-trade. Ending the Global Brands agreement suggests previous performance fell short. A clean break can reset momentum. But execution matters. New partners need time to build listings and train sales teams. Results may not appear until the holiday season.
Exports represent longer-term upside. RedLeg has traveled well in some markets. Blackwoods gin carries a distinctive botanical story that appeals to international bartenders. Blavod’s black color offers visual differentiation in a crowded vodka aisle. Smith’s experience building brands for export should help identify priority countries and suitable partners. Success there could offset softer UK volumes.
The funding need adds urgency. Distil said in March it was exploring options. No update has emerged since. Smith’s appointment may strengthen the company’s hand with potential lenders or equity investors. A credible CEO often makes the difference in small-cap financings. Whether that leads to a equity raise, debt facility or strategic partnership remains to be seen.
One thing looks clear. Distil no longer intends to operate with the same leadership configuration that carried it through earlier years. The board wants specialization. Goulding steps back with a strong legacy. Naughton steps up with governance in mind. Smith steps in to run the business.
Plenty of work lies ahead. Revenue must stabilize. Losses must shrink. Brands must find new buyers at home and abroad. Yet the pieces are moving. A veteran operator takes the wheel. The chairman role gains independence. Distribution gets refreshed. For a company that warned of material shortfalls only months ago, these represent concrete steps forward.
And the timing feels deliberate. Summer trading data will soon flow in. The new distributor starts in August. Smith begins mid-month. By autumn the market should see early signs of whether the refreshed leadership can arrest the decline. Spirits industry veterans rarely get second acts at listed AIM companies. Smith has one. The question now is how quickly he can make it count.
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