Gage Roads eyes continued growth
Gage Roads Brewing Co (GRB) is eyeing further growth after a strong first half of FY19 saw a 64 per cent increase in GRB brand sales to independent retailers.
The brewer also saw draught sales increase 69 per cent in the first half of the financial year and said that it is continuing to deliver on the key indicators of its five-year proprietary brand strategy.
The aim of that strategy is to “increase the awareness of its proprietary brands and expand those brands into broader markets, driving incremental sales through retail and on-premise channels to market”.
Managing Director John Hoedemaker said the first half-year provided a strong foundation for the remainder of the year.
“We’re pleased to deliver another strong quarter and half-year of growth, both in sales and earnings and we’re pleased to see that all the key targets we have set as part of the five-year proprietary brand strategy are being delivered,” Hoedemaker said.
He added: “John-Paul Murphy (Head of Sales) and Murray Reid (Sales Manager WA, SA & NT) are fantastic key appointments for our sales team and provide the experience and the leadership required to take our brands to the next level and to help activate the key markets in WA and the east coast of Australia.
“We look forward to continued growth of our proprietary brands through all channels and to deliver incremental earnings and value to our shareholders.”
Sales to the independent retail channel continues to be a key driver of growth for GRB’s brands, and were up 64 per cent in the first half of the year. The company said that Single Fin Summer Ale has continued to outperform in this market and has been a key contributor to the sales increase.
On-premise draught sales have also continued to perform well, delivering a total sales uplift of 136 per cent over the same period of the previous year. The company said that excluding draught volume sold under its ‘brand-in-hand’ strategy, draught sales improved by 69 per cent.
Looking ahead to the remainder of the financial year said that its Good Drinks brands growth and the five-year strategy are on-track to deliver margin growth and earnings targets for FY19 and beyond. Additionally GRB said its aims to continue its distribution and sales growth opportunities in the independent channel.
The company said: “With a flexible balance sheet, a management team strongly-alinged to shareholders, existing revenue streams secured and enhanced ability to drive revenue and margin growth, Gage Roads is well-placed to deliver growth in earnings and sustained value for our shareholders.”