By Ian Neubauer
Gage Road Brewing (GRB) has announced it will part company with distribution partner VOK Beverages and move to a direct distribution model to sell its beer and cider products in Australia.
The development follows an admission by GRB chief executive Nick Hayler in late March that the company had seen no growth in the number of retail outlets stocking its products in the first half of the current financial year – and that new ways to rectify the position were being explored.
In his most recent statement, Hayler said he was grateful for the service provided by VOK but the new distribution model would provide greater value to customers by making GRB products more competitively priced.
The direct distribution model will also see GRB engage in more joint marketing and sales incentives initiatives with retailers.
It is the second time in as many years GRB has parted ways with a distributor.
In May last year the Western Australian brewer decided not to renew an agreement with its then-distributor, Constellation Wines Australia, which had been working with GRB since its first commercial beer release in 2005.
GRB shares were trading at 3.9 cents each at 2:00pm today (Apr 6) compared to 4 cents seven days ago.