Western Australian brewer Gage Roads Brewing has reported a strong second quarter with an overall sales increase of its proprietary brands of 56 per cent, compared to the previous year’s corresponding period.

The increase in sales was driven by a 165 per cent increase in sales to independent retailers as well as a tripling of its keg sales. The brewer also saw a 13 per cent uplift in sales of its proprietary brands to the national retail chains.

Over the first half of the year Gage Roads saw its sales to the independent retail channel increase by 184 per cent, compared to the first half of its 2017 financial year.

The brewer has also recently signed partnerships with Perth’s new Optus Stadium and Rugby Australia, which Managing Director John Hoedemaker described as an important part of the company’s five-year strategy.

“Our aim is to work with sporting, entertainment and event organisations who have a ‘consumer first’ approach and provide our consumer a fantastic experience while they trial our range of beers and ciders.

“The East Coast of Australia is a key focus and the Rugby Australia partnership will get the Single Fin product in the hands of thousands of Australian rugby fans. We expect this to have a positive effect on our retail partners particularly in New South Wales, but also in other states as rugby fans return home after the event.

“I am very excited to see the positive consumer response to the Alby and Hello Sunshine brands as they were launched this month into the retail market and during the first few events at Optus Stadium.”

The company recorded an unaudited EBIT result of $1.3m for the first half, which is down $1.5m on the same period last year, but in its statement to the ASX, the company said this result “is in keeping with the company’s expectations”, adding “in comparing the two results, we note that the prior year result included $0.9m in non-recurring other income relating to a settlement with an equipment supplier and a tax refund”.

Gage Roads is 18 months into its five-year proprietary brand strategy, which is seeking to increase awareness of those brands in independent retail and on-premise channels. In looking to the future the brewer said that it is expecting sales, margin and earnings to grow in line with its five-year strategy and that it is looking to continue its growth into the independent retail and on-premise channels.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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