Stauning Whiskey drops out of the US after record deficit

The Danish whisky producer Stauning Whisky must tighten its belt after the company once again posted a large million-dollar deficit.

The West Jutland whisky producer had a deficit of 72 million kroner after tax last year, which is the largest ever.

However, part of the deficit is not related to operations, but to write-downs on buildings and equipment.

The deficit means, among other things, that the management has been forced to lay off its six employees in the US and withdraw from the American market.

- The potential is huge in the US, but it is enormously expensive to do business over there, and we need to ensure a positive cash flow in the somewhat shorter term, says CEO Lasse Vesterby to Finans.

He explains that instead they will aim to sell even more in local markets in Germany and Denmark, where the company currently makes money.

Stauning Whisky is largely owned by the British spirits group Diageo, which bought into Stauning Whisky in 2015.

But the British do not want to throw more money into the business, and therefore it is now up to the original founders, who are still co-owners, to achieve balance in the business.

Despite the large losses, Stauning Whisky still has solid equity. It amounts to almost 221 million kroner.

There are no sales figures in the accounts, but the management report states that "significant" growth has been achieved in the amount of whisky sold, which is considered satisfactory in the current business environment for the spirits industry.

Stauning Whisky expects to increase sales of whisky again this year, but still predicts a deficit of between 20 and 30 million kroner.

/ritzau/