By James Atkinson
Gage Roads Brewing Co continued to ramp up production of private label beer for part-owner Woolworths, a strategy that boosted the company's revenue by 25 per cent to $19.7 million last financial year.
Gage Roads' total production volumes increased by 23 per cent over the 12 months to June 30, the brewer announced to the ASX this week.
The news follows the recent appointment of Woolworths Liquor director Brad Banducci to the company's board.
"The full-year results saw solid growth in revenue and sales volumes while maintaining a consistent gross profit," Gage Roads said.
"This growth was driven by the company's position as a key supplier to the rapidly growing private label segment of the contract brew market."
Gage Roads contract-brewed products grew by 15 per cent over the previous financial year, while its proprietary products increased by 119 per cent.
"New products for the year, contributing to the growth, included Castaway Pear Cider, Castaway Strawberry & Lime, Ol' Bluey Ginger Beer, Sail & Anchor Draught, Dry Dock 640ml and the Gage Roads 640ml range," the company said.
Gage Roads revealed that it expects to launch a further 640ml product, Pumpkin Ale, in the coming months.
Its capital expansion project, designed to increase production capacity to 3 million cartons per annum by the 2015 financial year and achieve a corresponding 50 per cent reduction in operating costs per carton, is on schedule, the company said.
"Major site preparation works are progressing well, including the construction of the new building to house the Krones CombiCube brewhouse arriving early August 2012," Gage Roads said.
"Complete installation is expected to take around 10 weeks in time for the seasonally higher demand for beer in summer."