E-Malt.com News article: Canada, AB: Big Rock Brewery Inc. announces 2011 second quarter financial results

Big Rock Brewery Inc. announced its financial results for the second quarter of 2011, Market Watch.com reported on August, 4.

Sales volumes for the three months ended June 30, 2011 totaled 60,479 hectoliters compared to 57,832 hectoliters for the same period last year, an increase of approximately 5%. Management believes the higher second quarter sales volumes was primarily driven by increases in key brands, such as Grasshopper and Traditional, which achieved strong growth in both the "On Premise" (restaurants and bars) and Retail channels. For the six months ended June 30, 2011, sales volumes decreased 4,534 hl, approximately 4.2%, which reflected the lower sales volumes reported in the first quarter.

As part of its "Bring on Summer" campaign, Big Rock introduced a "long weekend" pricing strategy on its key brands. This strategy attracted new consumers to discover Grasshopper and Traditional, while rewarding existing consumers, and generated an increase in sales volumes.

CEO and Chairman of Big Rock, Ed McNally commented on the quarter, by saying "Our sales strategy is performing as we expected for the second quarter." Added McNally, "We are happy that the turn around in sales volumes completely eliminated the operating loss reported in the first quarter."

Big Rock reported net earnings of C$593 thousand for the first half of 2011, an improvement over the C$10.3 million net loss reported for the same comparative period last year. The 2010 net loss included charges of C$13.1 million charge relating to IFRS accounting adjustments, for which no similar amounts were recorded in 2011. For the three months ended June 30, 2011, net income totaled C$619 thousand compared to C$2.7 million for the same period last year. The reduction in net earnings was primarily driven by lower net sales revenues per hectoliter combined with higher delivery and distribution charges.

"Innovation continues to be a key driver in Big Rock's growth strategy and our recently launched line of Brewmaster's Series of beers was well received by customers throughout all markets", noted Bill McKenzie, the Brewery's President. Added McKenzie, "Our innovation, combined with our long weekend pricing strategy, is allowing us to forge new ground while protecting our stronghold in the western Canadian markets."

About Big Rock Brewery Inc.

Big Rock Brewery - 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, Rock Creek dry cider, as well as an ongoing selection of seasonal beers to be released through the Brewmaster's Series. Big Rock products are sold in nine provinces and three territories in Canada, and oddly enough, are also available in Korea.


10 August, 2011