Good Drinks announced it had maintained growth momentum for the first half of the year despite challenging Q3 market conditions, and says it is outperforming the category.
Sales by volume at the owner of Gage Roads Brewing Co. grew in all areas except brand-in-hand where it stayed steady at 600,000 litres, according to an investor presentation released to the ASX today.
National chain volumes grew 17 per cent to 3.5 million litres to date, while independent retailers 12 per cent to 3.8 million litres and draught sales by volume grew 22 per cent to 2.1 million litres.
In the year to date, it has grown its total volume 18 per cent to 15.1 million litres, up 14 per cent for its Good Drinks brands to 10 million litres and the remaining 5.1 million litres in contract brewing volume, a rise of 28 per cent.
The ASX-listed drinks business is targeting 18.8 million litres for the full year.
While its contract brewing volumes have risen in the most recent quarter, Good Drinks is planning to reduce that “significantly” in its next financial year, in line with its strategies.
Meanwhile it expects its growing portfolio of venues to contribute material earnings and cash flows and is set to commence its partnership with Magners Cider, which it acquired from Coca Cola Europacific Partners, in July.
Since opening, the Gage Roads Freo venue has served 250,000 pints in its first three months, while its Atomic venue in Sydney’s Redfern is now trading profitably but because of losses incurred during COVID, it will likely breakeven for the full year, according to Good Drinks.
Matso’s venue in Queensland is also being redeveloped in the next year at a cost of up to $4 million.
Good Drinks [ASX:GDA] has also recently launched its first no alcohol beer, Yeah Buoy, an alcohol-free XPA, joining the growing number of breweries looking into alcohol-free options, which were a major topic of discussion at the US Craft Brewers Conference this year.