Blavod Black Vodka will return to the North American market after its London-based owner Distil found a new distributor for the brand.

Coronavirus curbs forced AIM-listed Distil's previous US distribution partner to withdraw, thereby cutting off imports of Blavod to the country.

Distil, which also makes Red Leg Spiced Rum and Blackwoods Gin, told investors on Monday a new deal with AIKO Importers would give it access to an 'extensive distribution network' across the US, Canada and Puerto Rico, and 'strong retail relationships' with major accounts such as Costco.

The agreement comes in the wake of new tariffs on all US imports, which will see British drinks companies forced to pay so-called 'baseline' levies of 10 per cent.

Distil executive chairman Don Goulding said the group is working on the assumption that tariffs will 'remain in place for the foreseeable future', but added he sees levies as 'manageable' at 'current levels'.

He said Distil, which expects to recommence US shipments of Blavod Black Vodka from the end of June, would see 'benefit across the supply chain' should tariffs be lifted.

Distil shares were up 32.9 per cent to 0.093p in early trading, taking 2025 losses to 28.5 per cent.

Having initially benefitted from at-home drinking during the Covid-era lockdowns, Distil has since seen sales soften significantly.

Distil annual revenues have fallen from a 2021 peak of £3.6million to a low of £1.3million in 2023, though sales improved to £1.5million last year.

And the group's share price has collapsed almost 98 per cent form an April 2021 peak of 3.05p to just 0.072p as of market close on Friday.

However, they were handed gains of more than 75 per cent earlier this month after former ITM Power boss Dr Graham Cooley took a stake in the business.

Goulding said: 'Unlocking distribution for Blavod in the US marks an important moment and growth opportunity for the brand which has enjoyed success in this market in the past.'

By volume, vodka represents the biggest spirit category in the US, which is one of the biggest spirits markets globally, according to IWSR Drinks Market Analysis.

Goudling added: 'We've been inundated with requests for the product from customers and consumers, demonstrating strong awareness and demand.

'We believe this to be good time to drive forward, and we're excited to working closely with the Aiko team to build back this distribution.'