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Gage Roads beers ‘gain traction’

August 3, 2015
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The new craft beer range from Gage Roads Brewing drove an 18 per cent sales increase for the namesake brand last quarter, the company has announced.

Full-year sales of the Gage Roads beers were down seven per cent for the year ended June 30, but the company said they finished on a much stronger note.

“The last quarter has seen a reversal of the trend as the new range gained traction in consumer awareness resulting from increased marketing and promotional activity,” it said.

“During the last quarter the company’s West Australian draught strategy also performed well, exhibiting 71 per cent growth in proprietary branded keg sales in comparison to the [previous year].”

The company said it expects to execute its on-premise draught strategy and marketing activation in Sydney and Melbourne next month.

Gage Roads’ overall sales volume for 2014-15 was 1.4 million carton equivalents, down 17 per cent on the previous year.

Unaudited revenue was $24.4 million, down 11 per cent.

Contract brewing rebounds slightly
Sales to its contract brewing customers – which include shareholder Woolworths – improved by four per cent in the June quarter, Gage Roads said.

In February, the contract brewing division was given its own corporate identity, Australian Quality Beverages (AQB).

“During the last six months Australian Quality Beverages has worked with its committed partners to refresh and reposition existing brands, introduce a number of new brand opportunities and line extensions and increase promotional activity,” the company said.

“We expect these efforts to continue to improve sales with an ensuing uplift in sales to fall into summer FY16.”

AQB is actively working to secure additional contract production both domestically and internationally, Gage Roads said.

Managing director John Hoedemaker said that while FY15 had been tough, it was exciting to see the last quarter’s turnaround.

“I fully expect that trend to continue and for FY16 to bear the fruits of our hard labour during this year,” he said.

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