Export grows for Gage Roads' Good Drinks business

Growth continues for Gage Roads’ Good Drinks business following its latest export announcement, which the business says will bring greater distribution overseas.

The company today announced that an order for Gage Roads’ Single Fin, Little Dove and Sleeping Giant, along with Matso’s Ginger and Mango beers has left Fremantle for Europe.

The shipping container, Good Drinks second shipment to Europe, will arrive in the Netherlands before Easter, fulfilling mostly on-premise orders in Italy, France and Austria.

Good Drinks national accounts manager Donald Pleasance said in a media release that it’s an exciting opportunity for the company.

“The export side of our business is developing and holds strong potential going forward,” Pleasance said in the release.

“While these are gradual steps, it’s fantastic to receive another order following our first European export last year.

“International demand for our product is growing and we look forward to seeing more of our amazing beers in bars and stores across Europe.”

Outside of Europe, Good Drinks has fulfilled three orders to Malaysia since December last year, with interest from China, Hong Kong and Singapore increasing.

Pleasance told Brews News that in the early stages of developing an export market, it is imperative that very fresh beer is shipped in smaller, just-in-time quantities to ensure that each time a venue orders from the importer, it receives the beer in the best possible condition.

“Partnering with good, specialist beer importers who understand the freight and storage needs of craft beer is essential,” he said.

Pleasance told Brews News that while all styles of craft beer – from lighter, aromatic styles to bigger, hop driven ales – are in demand overseas, the Asian market is especially interested in flavoured beers.

“Favoured beers are generating much interest in Asia amongst importers specialising in on-premise.

“Craft beer venues in Asia are developing at a rapid rate due to increased interest from younger beer consumers.”

Today’s news follows last week’s release of Gage Roads’ H1 FY19 results which showed the businesses total proprietary brands volume, including Matso’s, up by 96 per cent. The company reported that “strong growth across all channels resulted in total Gage Roads brands sales for the half-year being up 58 per cent to 2.9 million litres”.

The company also reported that its “own brand portion of the total sales mix has grown from 41 per cent in H1 FY18 to 50 per cent in H1 FY19”.

Gage Roads said that this shift in sales mix towards its own brands has improved total gross profit from 59 per cent in H1 FY18 to 68 per cent for H1 FY19.

The ASX announcement said that the company was “pleased to present another quarter of strong growth, continuing the trend set by previous quarters that have driven increased earnings and ultimately higher value for our shareholders”.

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