Canada's Sleeman Breweries Ltd. posted on August 6 a 56.5% decline of its second-quarter profit and a 16% rise of its revenues. Net profit in the quarter fell to C$2.0 million ($1.4 million), or 13 Canadian cents per share on a diluted basis, compared to C$4.6 million or 29 Canadian cents per share in the same quarter in 2002. The Canadian brewer said last year's profit was higher because of a C$2.8 million after-tax gain from selling a distribution agreement for Beck's beer in Canada. Labatt Breweries of Canada took over the Beck's agreement.

The company revenue increased 16 % to a record C$49.9 million in the quarter, and credited higher volumes and a contract to brew beer for Japan's Sapporo brewery. "The integration of Sapporo production into our Guelph plant, along with controlled spending, has helped Sleeman to achieve profitable growth in 2003," said John Sleeman, chairman and chief executive, in a statement.

Volumes rose 17 % to 362,000 hectolitres, it said.
Guelph, Ontario-based Sleeman is known for its transparent beer bottles and for its Cream Ale, Premium Light and Honey Brown Lager brands. It said it had started to sell Sleeman beer in cans in Quebec supermarkets and convenience stores during the quarter.
Sleeman also said it reached a distribution agreement with Diageo Canada Inc, a unit of Diageo Plc, to distribute draught and packaged brands such as Guinness in British Columbia and Quebec.

08 August, 2003