BEER SALES GO FLAT AT COOPERS
PRODUCT innovation and geographic expansion would be key to Coopers Brewery’s growth after sales volumes and profits took a hit last financial year, the company said on Monday.
But Coopers managing director Tim Cooper said there was always a “healthy tension’’ at the South Australian brewer between tradition and a push for the company to stretch its wings.
“I think the big retailers might like us to be more innovative, but we’ve improved our performance in the last three years or so with products like Session Ale, which became Pacific Pale Ale, and XPA, and those two products are still doing quite well for us,’’ Dr Cooper said.
Coopers has had success in recent years with seasonal releases, including the Hazy IPA and the Regency Park Red Ale, while XPA, first released in 2019, has become a permanent fixture.
Dr Cooper said the company was committed to “innovating as much as we can’’, but there was a risk that growing niche products eroded sales in core lines.
But for Coopers, which commands about 20 per cent of beer sales in its home market of SA, there was room to develop its core business on the national stage, he said, adding it was “cautiously optimistic’’.
Sales last financial year fell 7.4 per cent in Victoria and Tasmania, 4.9 per cent in NSW and 4.6 per cent in SA. Sales in Western Australia grew 2 per cent and Dr Cooper said volumes were up 19 per cent over three years.
“While the overall market remains tight, we are seeing some positive signs emerging,’’ Dr Cooper said. “Encouragingly, keg sales have recovered somewhat since June 30 and are currently tracking ahead of last year’s results. Production levels are also ramping up.”
In the 12 months to June 30, beer sales fell 3.5 per cent to 82.3 million litres, in line with industry experience.
Pre-tax profit was $27.3m, down from $36.5m, with a 13.5 per cent decline in keg sales, a 9.3 per cent drop in malt sales and higher logistics costs behind the fall.
Coopers has initiated a share buyback for some 180 shareholders at $405 per share, and increased its fully franked dividend to $14 per share, up from $13.50.
It expects to break ground on a $50m microbrewery in Adelaide this month.