How Will Lark Distilling’s New CEO Drive Its Next Growth Phase?
Lark Distilling Co. reported a 10% increase in net sales for Q1 FY26, driven by strong domestic and Asian export growth, while preparing for a major brand restage and leadership change.
- Net sales up 10% to $3.7 million with five consecutive quarters of growth
- Domestic direct-to-consumer sales surged 23%, led by ecommerce specialty releases
- Asia export sales jumped 160%, including initial shipment of KURIO to China
- Pontville flagship distillery commissioning nearing completion to boost efficiency
- Leadership transition, Stuart Gregor appointed CEO effective January 2026
Steady Sales Momentum
Lark Distilling Co. Ltd (ASX, LRK), Australia's leading luxury single malt whisky producer, has kicked off FY26 with a solid 10% increase in net sales to $3.7 million for the September quarter. This marks the fifth consecutive quarter of year-on-year sales growth, underscoring the company’s sustained operating momentum.
The growth was largely fuelled by a 23% rise in domestic direct-to-consumer sales, driven by strong ecommerce demand for specialty whisky releases. Meanwhile, global travel retail sales climbed 33%, supported by promotional activations and the popularity of the Mizunara Oak Rare Cask Whisky in airports.
Expanding Asian Footprint
Internationally, Lark’s Asia export sales surged an impressive 160% to $0.6 million, highlighted by the initial shipment of its KURIO blended malt into China. The company is actively engaging with distribution partners across Southeast Asia, with Singapore standing out as a key market thanks to a brand ambassador-led trade incentive program. This initiative includes inviting trade partners and influencers to the Tasmanian distillery, aiming to build brand recognition ahead of the upcoming restage launch.
Operational Advances and Brand Restage
On the operational front, Lark’s flagship Pontville distillery development is largely complete, with commissioning underway. This new facility is expected to enhance production efficiency and scalability, supporting the company’s growth ambitions. Additionally, Lark has successfully trialed automated bottling with a third-party partner, a move anticipated to reduce costs and improve operational efficiency as part of the broader brand restage strategy.
The restage of Lark’s portfolio is planned for rollout in export markets during Q2 FY26 and domestically from Q3 FY26, culminating in a consumer launch in April 2026. This coordinated effort aims to elevate Lark’s positioning as a luxury New World whisky brand and capitalize on growing global demand.
Leadership Transition and Financial Strength
In a significant leadership update, Lark announced the appointment of Non-Executive Director Stuart Gregor as CEO, effective 1 January 2026. Gregor brings 25 years of industry experience, including co-founding Four Pillars Gin and scaling it to an international brand. Outgoing CEO Sash Sharma expressed confidence in Gregor’s ability to build on the company’s strong foundations and global expansion plans.
Financially, Lark maintains a robust balance sheet with $20 million in cash and a whisky inventory bank of approximately 2.4 million litres. Despite a net operating cash outflow of $1.5 million for the quarter, the company’s available funding covers an estimated 16.5 quarters, providing ample strategic flexibility.
Bottom Line?
With a new CEO at the helm and a brand restage on the horizon, Lark Distilling is poised to deepen its global footprint and accelerate growth.
Questions in the middle?
- How will Stuart Gregor’s leadership influence Lark’s global expansion and brand strategy?
- What impact will the upcoming brand restage have on sales and market perception?
- Can Lark sustain its rapid growth in Asia amid increasing competition?
