Coopers Brewery has booked revenue growth for the 22nd year in a row in the 2014-15 financial year, bucking the broader decline in beer consumption.
The company said its total beer sales for the year rose 4.7 per cent to 78.8 million litres, and its revenue rose from $231.3 million in 2013-14 to $235.1 million. Coopers' after tax profit increased by 3.2 per cent to $28.9 million, up from $28 million.
Coopers managing director, Dr Tim Cooper, said that Coopers’ packaged beer sales rose 6.3 per cent, but keg beer volumes fell 2.7 per cent to 12.8 million litres.
“This decline in our draught beer volume is to a level we last saw in 2009,” he said.
According to Cooper, this mirrors the fall in Australian beer consumption since 2009, when the national volume was 18.7 million hectolitres (1.87 billion litres).
“Australia is now drinking less than 17 million hectolitres per annum, levels last seen in 1972.
“This troubling fall in consumption represents a loss of nearly 10 per cent of Australia’s beer volume in six years, despite a growing population.”
Dr Cooper said Coopers’ margins also continued to be under pressure as retailers fought to maintain their profits in the face of declining volumes.
“This has seen demands for increased discounts and rebates from retailers,” he said.
“Higher rebates for kegged beer result in upward pressure on wholesale prices, which in turn results in further reductions in consumer demand.
“Coopers also faced a significant rise in the cost of malt, one of our key ingredients, with the price increasing by $60 a tonne during 2014-15.”
Cooper said that despite the pressures, Coopers had managed to increase its market share to almost 5 per cent of the total beer market.
“Our international beer portfolio continued to perform strongly, underpinned by excellent relationships with our international partners, Carlsberg and Sapporo,” he said.
