The axing last quarter of two of Gage Roads Brewing’s biggest contract brewed brands saw its total sales volume decline by 16 per cent for the year to date.

Sales from the contract brewing division Australian Quality Beverages (AQB) declined by 30 per cent for the nine months to March 31, 2016, the company announced on Friday.

“Although the market-wide decline in mainstream commercial-style beers contributed to this result, two of the company’s largest volume (but most heavily in decline) contract-brewed brands were discontinued during the quarter,” Gage Roads said.

“This volume is being replaced in Q4 by new brands with higher ongoing volume expectations.”

However, sales of Gage Roads’ proprietary craft beers were up 86 per cent on last year, which the company said contributed to improved profitability.

Managing director John Hoedemaker said Gage Roads expects the proprietary brands to deliver on aninternal target of 300,000 case equivalents for FY16.

“We expect FY16 to deliver similar total sales volumes as FY15 but at an improved margin,” he said.

“We are targeting earnings before interest, tax, depreciation and amortisation (EBITDA) of at least $1 per litre by 2021.”