E-Malt.com News article: Canada, Alta: Big Rock Brewery reports decline in net earnings in 2010

Big Rock Brewery Inc. announced on March, 22 its financial results for the year ended December 31, 2010. Net income for year ended December 31, 2010 decreased to C$6.1 million from C$7.4 million in 2009. Net income for 2010 includes one-time charges of approximately C$0.7 million which related to the corporate conversion that was completed in January 2011.

The decline in net earnings was primarily a result of lower sales volumes delivered in 2010, which were primarily due to decreases in the brewery's Lime and value-priced categories. Management believes the decline in the value-priced brands was the result of the industry's continued focus and aggressive pricing strategies in the mainstream and value-priced category. Big Rock chose not to react to those strategies and, as a result, sales volumes declined in this category.

Excluding Lime, Big Rock's portfolio of core and private label brands grew by approximately 1% compared to 2009, while the Canadian beer industry declined by roughly 1%.

"Overall, I believe Big Rock is well positioned as the leader in Canadian craft brewing," says Big Rock President, Bill McKenzie. "Big Rock continued to premiumize its portfolio in 2010 and we were very strategic in terms of our pricing initiatives and how we reacted to the market dynamics influenced primarily by the major multi-national brewers. Although we witnessed a slight erosion in some volumes, we're confident that our portfolio of brands are well positioned to continue growing within the craft segment. Moving forward we will keep a close eye on all segments of the market and focus on delivering a healthy balance between hectolitre volumes and sales revenue."

CEO and Chairman of Big Rock, Ed McNally commented on the quarter, by saying "Our results are in-line with expectations given the challenges we've faced." Added McNally, "We witnessed a price war throughout 2010, and we chose not to play in that arena. While it cost us in volume, we maintained strong brand equity within of our craft beer portfolio."

Big Rock Brewery Inc. - headquartered in Calgary, Alberta - produces premium, all-natural craft beers. As Canada's leading craft brewer Big Rock boasts a family of twelve exceptional ales and lagers (including their newest brew IPA), Rock Creek dry apple cider and an ongoing selection of seasonal beers soon to be unveiled in the new Brewmaster's Series. Big Rock products are sold in nine provinces and three territories in Canada and they are also available in Korea.


23 March, 2011