Drinks Americas Sales Increase 758% for the Quarter, Margins Improve 131%

WILTON, Conn., Dec. 12, 2011 /PRNewswire/ -- Drinks Americas Holdings, Ltd., ("Drinks") (OTCBB: DKAM), a leading developer and marketer of beverage products, announced that the Company had a net sales increase of 758% and a 131% improvement in gross margin for the quarter ending October 31, 2011.  Sales for the three months ending October 31, 2011 were $1,270,589 with a gross margin of 23.8% compared to the prior three months (ended July 31, 2011) of $148,080 with a gross margin of 10.3%.  Drinks Americas had a net increase in sales of 758% and a 131% improvement in gross margin for the quarter. 

Comparing the same period last year (three months ended October 31, 2010) Drinks Americas sales increased by $1,126,947 from $143,642 or 784% with margins of 23.8% compared to 20.8% same period last year (a 14.4% improvement).

On a year to date basis (six months ended October 31, 2011) Drinks Americas sales were up 477% reaching $1,418,669 compared to $245,898 for the same period last year.  Margins improved 62.5%.  Margins were 22.4% for the current period compared to 13.8% for the same period last year. 

Drinks Americas net loss for the three months ended October 31, 2011 decreased by 54.2% to $384,203 as compared to $850,415, an improvement of $466,212.  Year to date (six months ended October 31, 2011) was $730,471 compared to $1,748,853 for the same period last year a $1,018,382 or a 58.3% improvement.  The result is primarily attributable to the Company's increased sales volume coupled with gross margin improvements.

The Company continued to extinguish debt with an additional $322,000 in gain recognized in settlement of debt. Also impacting results were onetime expenses in the quarter ending October 31, 2011 that were in excess of $380,000. Interest expenses for the quarter were reduced from $204,000 to $56,000.

SGA over six months increased 6.2% however sales commission increases based on increased rate of sales had an $80,000 impact on the continued reduction of costs. Without increased commissions from incremental sales, SGA actually decreased 13%.

The Company's growth was accelerated by access to inventory on favorable terms as a result of Drinks Americas' recent transaction with Worldwide Beverage Imports, LLC and the sales of KAH Tequila, Old Whiskey River Bourbon, and Rheingold Beer.

About Drinks Americas

Drinks Americas develops, owns, markets, and nationally distributes alcoholic premium beverages. In June, the Company entered into a sales and licensing agreement with Worldwide Beverage Imports, LLC and is now selling and distributing KAH Tequila, Ed Hardy Silver Tequila, Agave 99 Tequila and beer products from Cerveceria Mexicana, S. de R.L. de C.V. to include Rio Bravo, Flying Pig Mexican Ale, and Chili Devil Beer. The Company also markets Willie Nelson's Old Whiskey River Bourbon, Olifant Vodka, receives a royalty for Kid Rock's American Badass Beer and Damiana Mexican Liqueur, and owns and distributes Rheingold Beer. For further information, please visit our new websites at www.drinksamericas.com, www.rheingoldbrewingcompany.com and www.KahTequila.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.

Contact
Charles Davidson
Drinks Americas, Inc.
203-762-7000      

SOURCE Drinks Americas Holdings, Ltd.