Cheers to that! Gage Roads and Australian Whisky drink to higher revenue
Food & Agriculture
Food & Agriculture
Booze stocks Gage Roads Brewing and Australian Whisky have today reported higher annual sales.
Brewer Gage Roads (ASX:GRB) sold $33 million worth of craft beer last year — a 22 per cent increase.
Meanwhile Australian Whisky (ASX:AWY) sold $428,476 of its liquid gold — a 343 per cent increase.
The beer brewer reported a $2.1 million profit — a 2.5pc increase — while Australian Whisky posted a wider loss of $3.4 million.
Gage Roads stressed it was in the second year of a five-year brand strategy, telling investors that increased investment in sales and marketing (costs increased 128 per cent) was offset by stronger brand awareness and increased patronage.
“We continue to see success with our ‘brand-in-hand’ marketing strategy, achieving increased sales through greater brand awareness,” the company told investors.
“Sales to Optus Stadium, Fringe World, Rugby 7s and other events are on track to deliver earnings that fully offset the costs of the strategy and are an effective way to activate our products in the market.”
Also contributing to the good news at Gage Roads throughout the year was the acquisition of Matso’s, a Broome brewer of popular ginger and mango-flavoured beers, $12 million raised from shareholders and a 123pc jump in sales for the company’s Single Fin Summer Ale, now the brand’s most popular beer.
The ASX’s other listed craft brewer, Broo (ASX:BEE) is yet to report its full-year results, but told investors Friday that sales in China continued to increase. Back in May, Aussie investors were still to be convinced of that strategy.
Meanwhile Australian Whisky told investors it had made “significant progress” on a long strategy “aimed at achieving a major position in the premium quality, craft whisky industry in Australia”.
Aus Whisky recently won approval for a takeover of Tasmania’s Lark Distillery which it had been hunting since 2016.
Aus Whisky managed to improve its cash and asset positions despite the hit to its bottom line.
Net assets jumped to $31 million thanks to its long-awaited acquisition of Lark Distillery, which also contributed to a 697 per cent increase in cash in the bank to $6.9 million.