E-Malt.com News article: 1058

Sleeman Breweries Ltd., Canada's third largest brewer, reported on May 13 its first-quarter profit was down 4 % because of weaker Easter sales and higher beer taxes in Alberta, Reuters reported.

In the quarter ended on March 29, net income at Sleeman was C$1.9 million ($1.4 million), or 12 Canadian cents per share on a diluted basis, compared with C$2.0 million, or 13 Canadian cents per share, in the first quarter of 2002. It said that sales of major competitors Labatt Breweries of Canada and Molson Inc. -- who control about 90 % of the beer market in Canada -- were down about 3 % during the same quarter.

Sleeman, known for its clear beer bottles, said it benefited from the start of Sapporo beer production in the quarter. The company said volumes and net revenue were expected to increase in 2003 due to core volume growth, the effects of the Grolsch beer contract acquired in the middle of 2002 and the effects of the Sapporo deal signed late in 2002.

"Despite an unusually cold winter season and the fact that this year's first quarter did not benefit from Easter season sales as the first quarter of 2002 did, our core volume grew significantly in the current quarter," said Sleeman's chairman and CEO, John Sleeman. "Our 5% growth in core volumes compared favourably to an industry decline of 3% for the quarter."

Sleeman said it would continue to distribute or brew other premium import brands to add to its stable of import and domestic premium beers.


14 May, 2003