Drinks Americas Announces Improved Fiscal 2010 Third Quarter Operating Results

WILTON, Conn., March 23 /PRNewswire-FirstCall/ -- Drinks Americas Holdings, Ltd. (OTC Bulletin Board: DKAM) a leading owner, developer and marketer of premium beverages associated with renowned icons announced results for the fiscal third quarter ended January 31, 2010.

In the third quarter, the Company shipped and sold approximately $397,000 in new product. As previously reported, due to working capital constraints, the Company's second fiscal quarter ended October 31, 2009 generated only $15,000 in shipments and resulting revenue.  Revenue exceeded the Company's previous forecast.

"We believe that our third quarter results reflect the improvements in operations that we have implemented over the past six months," said J. Patrick Kenny, the Company's Chairman and CEO. "We have stabilized our operations, allowing us to again focus on growing revenue through both existing and new distribution channels. In addition, we have strengthened our balance sheet through the reduction of payables and operating costs, which should allow us to become profitable as Mexcor increases distribution of our products."

The Company reduced Selling, General and Administrative expenses by 62% in the third fiscal quarter compared to the same quarter of the prior fiscal year.  Selling, General and Administrative expenses this fiscal third quarter versus the second fiscal quarter declined $956,000 or 60%.  As a result of the reconfiguration of the Company's business model, Drinks' annual overhead will continue to be reduced from an historical run rate of approximately more than $4.8 million annually to approximately $1.2 million annually.

As a result of various negotiations, the Company has reduced its third quarter payables and short-term debt by $383,000 from last fiscal quarter and additionally has paid down $200,000 of its long-term debt.

The Company recently announced a venture with Mexcor International Wine and Spirits to accelerate the Company's growth. The positive progress of this venture will be reviewed and updated in an upcoming shareholder letter from the CEO in the next several weeks.  

About Drinks Americas

Drinks Americas develops, owns, markets, and nationally distributes alcoholic and non-alcoholic premium beverages associated with renowned icon celebrities, including Trump Super Premium Vodka and Willie Nelson's Old Whiskey River Bourbon. The Company also has a partnership with Universal Music's Interscope, Geffen, A&M Records to jointly develop and launch beverage products. Other products owned by Drinks Americas include Olifant Vodka, Aguila Tequila and Rheingold Beer. The Company has recently developed and assisted in the launch of Kid Rock's American Badass Beer selling in Michigan.

For further information, please visit our new website at www.drinksamericas.com.

Safe Harbor

Except for the historical information contained herein, the matters set forth in this release, including the description of the company and its product offerings, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the historical volatility and low trading volume of our stock, the risk and uncertainties inherent in the early stages of growth companies, the company's need to raise substantial additional capital to proceed with its business, risks associated with competitors, and other risks detailed from time to time in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.

SOURCE Drinks Americas Holdings, Ltd.