Core Insights - Diamond Estates Wines & Spirits Inc. reported financial results for Q3 2026, showing significant revenue growth and improved gross margins [1][2]. Financial Performance - Revenue for Q3 2026 was $8.2 million, an increase of $1.8 million from $6.4 million in Q3 2025 [17]. - Gross margin for Q3 2026 was $4.9 million, up from $3.7 million in Q3 2025, with a gross margin percentage of 59.8%, compared to 57.5% in the prior year [17]. - SG&A expenses rose to $4.3 million in Q3 2026 from $3.1 million in Q3 2025, primarily due to VQA support payments and increased advertising costs [17]. - Adjusted EBITDA increased to $0.7 million in Q3 2026 from $0.6 million in Q3 2025, despite a decrease in EBITDA to $0.7 million from $1.4 million in the same period [17]. - The company reported a net loss of $0.1 million in Q3 2026, down from a net income of $0.5 million in Q3 2025 [17]. Operational Highlights - The Winery division saw a sales increase of $1.9 million, driven by growth in grocery and convenience channels [17]. - The company completed one of its largest harvests in history, more than doubling the volume of grapes compared to 2024, and achieved its largest ice-wine harvest in recent years [6][7]. - Management is finalizing a three-year strategic plan aimed at continued growth and strengthening of the business [8]. Industry Context - The Ontario VQA wine industry is experiencing significant growth, with the retail channel expanding over 50% in the past year [9]. - Consumers are increasingly supporting Canadian-made products, which is positively impacting the company's performance [9].

Core Points - Diamond Estates Wines & Spirits Inc. has entered into a Seventh Amendment to its Second Amended and Restated Credit Agreement with Bank of Montreal, effective November 10, 2025 [1] - The company expresses gratitude to Bank of Montreal for its support during its financial turnaround, as indicated by its Fiscal 2024/25 year-end and Q1 results [2] - The company will release its Q2 results towards the end of November [2] Company Overview - Diamond Estates Wines & Spirits Inc. produces high-quality wines and ciders and acts as a sales agent for over 120 beverage alcohol brands across Canada [3] - The company operates four production facilities, three in Ontario and one in British Columbia, producing predominantly VQA wines under various well-known brand names [3] Product Portfolios - The wine portfolio includes renowned brands such as Fat Bastard, Gabriel Meffre, and Kaiken, among others from various countries [5] - The spirits portfolio features distinguished brands like Tag Vodka, Ginslinger Gin, and Barnburner Whisky, as well as international brands from Mexico, Scotland, and the UK [6] - The beer, cider, and ready-to-drink (RTD) portfolio includes products from Ontario and international brands from Belgium, the Netherlands, and Germany [7] Credit Facilities - A bulge amount credit facility of $3,600,000 has been established, maturing on the earlier of the cancellation request date or March 27, 2026 [9] - A limited recourse guarantee has been added, granted by Lassonde Industries Inc. in favor of BMO, not exceeding the outstanding Bulge Amount [9] - Interest rates have been amended to Prime Rate plus 2.65% during the Temporary Bulge Period and Prime Rate plus 2.40% at all other times [9]

Core Insights - Five Farms Irish Cream and Holladay Bourbon showcased their unique heritages at the Tales of the Cocktail 2025, emphasizing authenticity and craftsmanship in the vibrant setting of New Orleans [1][2][7] Company Highlights - Five Farms Irish Cream is recognized as the world's first farm-to-table Irish cream liqueur, made from single batches of cream sourced from five family-owned farms in County Cork, Ireland, featuring ten times more Irish whiskey than competitors [9] - Holladay Bourbon, crafted at the historic Holladay Distillery in Weston, Missouri, has a legacy dating back to 1856, utilizing the same mash bill and natural limestone spring water, appealing to modern whiskey drinkers with its well-balanced and robust expressions [8] Event Activities - Five Farms hosted an immersive showcase at the Irish House at Mambo's, highlighting the evolution of Irish spirits through innovative cocktails and international collaboration [3] - Holladay Bourbon featured multiple activations, including a creative Happy Hour at The Vue, where bartenders presented unique twists on Southern classics using both Ben Holladay Bourbon and Soft Red Wheat Bourbon [5] Signature Cocktails - The Frozen Irish Coffee, made with Five Farms' whiskey-forward cream liqueur, became a signature drink at the event, blending tradition with innovation [4] - The Holladay Bourbon Smash, a refreshing cocktail combining Holladay Soft Red Wheat Bourbon, honey-cinnamon syrup, and lemon juice, was highlighted as a favorite during the event [6]