Dallas, Texas 06/29/2015 (Financialstrend) – Castle Brands Inc (NYSEMKT:ROX) has acquired a 20% stake in Copperhead Distillery Company. The investment is part of the company’s push to build a new warehouse that it plans to use to store Jefferson’s bourbons. The facility will also come in handy for providing distilling capabilities using special mash bills.
Construction of A New Warehouse
The company plans to use the investment to purchase land near the current distillery for the construction of the new warehouse and tasting facility. The new warehouse will have a capacity to store up to 10,000 barrels with provision for future expansion. Chief Operating Officer, John S Glover, maintains they are the perfect fit for Jefferson bourbon as they specialize in making the highest quality spirits.
The new facility should be helpful in Castle Brands Inc (NYSEMKT:ROX) push to grow its sales as well as brand extensions. The company is aggressively driving sales of its profitable brands shown by strong revenue growth and improved margins for the fiscal year ended March 31, 2015. Improved sales should have an impact on the company’s financial performance according to CEO, Richard j. Lampen.
Impressive Q4 Earnings
Fourth quarter revenues came in at $16.2 million against Street’s consensus estimates if $14 million as the company continues to benefit from the strong demand of its core brands. Increased brand recognition, especially for the Ginger beer and whiskey categories, is expected to stimulate demand in core markets, expected to act as a catalyst for expansion into other markets.
Castle Brands Inc (NYSEMKT:ROX) sentiments continue to improve in the Street shown by a 27.8% decrease in short interest for the month of June. As of June 15th, short interests totaled 811,976 shares down from a high of 1, 125, 022 shares as of May 29, 2015. Zacks has already upgraded the stock to a ‘hold’ rating from a ‘sell’ rating, a reflection of the company’s improving fundamentals.