re: Ann: Westons World Brands signs contract ...
Craft brewer Gage Roads, which makes private-label beer for Woolworths, has expanded its product range by signing an exclusive contract agreement to make Weston’s premium cider for Westons World Brands, the local business of British brewer H Weston & Sons.
Gage Roads Brewing Co managing director John Hoedemaker said the contract packing agreement – the eighth in 12 months – represented another step in the company’s strategy to augment organic growth from its existing portfolio with contract packing deals for brewers and retailers.
Gage Roads, which is 25 per cent owned by Woolworths, wants to become Australia’s leading contract brewer.
Last year it lifted brewing capacity to 2.5 million cartons and signed exclusive contract brewing agreements with seven new customers including Treasury Wine Estates, San Miguel Corp, Duckstein Brewery and the McLaren Vale Beer Company.
Most of these contracts were due to commence in the fourth quarter of 2013, while the contract to make Weston’s premium cider starts in the December quarter 2014 – boosting revenues this year.
The company wants to expand production capacity to 3 million cartons by 2015 – three times that in 2012 – and raised $7.5 million in April to reduce debt and fund capacity growth.
The Westons deal gives Gage Road further exposure to the fast-growing cider market.
Cider sales rose 40 per cent in 2012, according to Nielsen figures, while packaged beer sales fell 0.5 per cent.
Westons sponsors the England and Wales Cricket Board and the Ashes and exports to more than 40 countries.
“Westons is a great English cider maker with a huge tradition,” said Mr Hoedemaker. “We are proud to collaborate with such an established brand and company.”
GRB Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
