“Gage Roads Brewing extends contract to produce exclusive brands for Pinnacle Drinks
13:47 05 Feb 2019
The company recently reported unaudited 1H FY2019 EBITDA of $2.1 million, an increase of 59% compared to 1H FY2018.
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Gage Roads brands sales for 1H 2019 are up 58% to 2.9 million litres
Gage Roads Brewing Co Ltd (ASX:GRB) has been awarded the tender to continue to produce a number of exclusive brands for Pinnacle Drinks for an additional three years.
Gage Roads’ existing contract ends on June 30, 2019 and the new term under this contract will commence on July 1, 2019 through to the end of FY 2022 subject to the completion of formal documentation.
While the new contract does not contain any minimum volume commitments, the volume expectations outlined in the tender are anticipated to be up to 460,000 cases per annum (3.6 million litres).
This contract is in keeping with the 5-year proprietary brand strategy and the volumes awarded under this tender are directly aligned with Gage Roads’ vision for FY20, FY21 and FY22.
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National craft beer retail market share (moving annual total)
Interestingly, Gage Roads shares are currently trading at 9.7 cents, up from 4 cents when the Return to Craft Strategy was revealed.
Gage Roads managing director John Hoedemaker said the tender win was a testament to the quality of products the company continues to produce.
Hoedemaker added: “Gage Roads has a long and successful partnership with Pinnacle Drinks and being awarded the tender for these products is a confirmation of the quality of products we produce and the capabilities we demonstrate as an organisation.
“We look forward to continue to work with Pinnacle Drinks to deliver high quality products to consumers throughout Australia.”
