Strong growth at Good Drinks despite COVID
Good Drinks, parent company of Gage Roads Brew Co., is on track for a strong full-year result, although its comparatively small brand-in-hand segment has been affected by ongoing COVID-19 restrictions.
The company reported in an investor presentation this week that it has “excellent momentum” in its third quarter, and expected to close out the year with a strong annual result.
While venues have been allowed to reopen, they have also faced restrictions on capacity, even in WA. This has seen its brand-in-hand sales decline 35 per cent in the year to date to 600,000 litres, down from 1 million litres at the same point last year.
However, this is a much smaller area of the business, with all other sectors including on and off-premise, as well as contract-brewed volumes on the up.
The brand-in-hand segment remains an area of focus for the business and Good Drinks recently signed on to an extended contract with Optus Stadium, through to 2028.
For the year to date, total sales volume is up 41 per cent to 12.8 million litres and total production volume rose 40 per cent to 14.7 million litres. Its highest-ever weekly output was achieved in this latest quarter when it achieved 600,000 litres in one week.
Meanwhile, sales in national bottleshops rose an impressive 66 per cent for the year to date, up to 3 million litres.
It has invested in upscaling its national sales force, bringing in 12 new staff in its account management and sales operations.
Having identified the east coast as an area of growth and launching one of its brands, Atomic Beer Project, in a venue there at the end of last year, east coast distribution is up 29 per cent. It said that while the Redfern venue is now profitable, it expects a full-year loss of $500,000 given the impact of COVID-19.
Meanwhile, its A-Shed venue in Fremantle is on track, with approvals obtained and a builder appointed with construction expected to commence in May and an opening expected this summer. Additional venues are being investigated in Queensland and New South Wales.
Good Drinks has also launched Matso’s Lower Sugar Ginger Beer, and Gage Roads’ Rock Dance IPA as it aims for a wider market.