By James Atkinson
Gage Roads signed a contract brewing agreement with Treasury Wine Estates (TWE) last quarter to produce its Pepperjack Hand-Crafted Ale, the brewer has announced.
Reporting its full year results this week, Gage Roads said it produced the Pepperjack beer for TWE for the first time in July, as well as sparkling Shiraz and sparkling Chenin for Sitella Winery.
"In line with the company's strategy to become Australia's leading craft contract brewer, production for other contract brewing customers has increased by 105 per cent in comparison to FY12," the company said.
Gage Roads' revenue for the year was up 15 per cent to $23 million, with total production volume up 10 per cent to 11 million litres.
The company said its proprietary products including Sleeping Giant IPA and Atomic Pale Ale performed strongly during the year, delivering a 35 per cent uplift.
Its production of Woolworths' exclusive brands declined four per cent in comparison to last year as a result of the retailer undertaking an adjustment of its retail model and the re-positioning of some of the exclusive brands at higher price points.
"Although this repositioning had a short-term impact on the Woolworths' production volumes, it is expected to deliver future volume growth in line with the company's outlook," Gage Roads said.
Managing director John Hoedemaker said it was "a credit to the team at Gage Roads and a great result for shareholders to achieve a 10 per cent growth in production and a 15 per cent growth in revenue during a year of significant capital construction".
"New customers, growing draught sales, the continued support of Woolworths and a consistent gross profit are all indicators that the company's core strategies are unfolding as expected."