E-Malt.com News article: Australia: Coopers Brewery reports first profit drop in three years

South Australian brewer Coopers Brewery has seen its first profit drop in three years as costs associated with a new bottling line and beer sales shifting from kegs to less profitable packaged beer formats squeezed earnings, The Australian reported on November 6.

However, the family-owned Coopers said it continued to enjoy ongoing growth during the 2013-14 financial year with record sales and turnover figures.

Coopers, which is the largest Australian-owned brewer following the foreign takeovers of Lion and Foster’s, said on November 6 that full-year net profit dipped 9.1 per cent to A$28 million for fiscal 2014 from A$30.8 million recorded in 2013.

Coopers managing director, Tim Cooper, said total bulk or kegged beer sales fell 1.5 per cent during the year, while packaged beer sales were up 10.3 per cent.

“Total beer sales in 2013-14 grew 8.1 per cent to 75.3 million litres, continuing the steady growth Coopers has enjoyed since 1994,” Dr Cooper said.

Turnover for the year reached a record A$231 million, 6.9 per cent better than the A$216 million in 2012-13.

Dr Cooper said sales in South Australia — its home market — fell 0.8 per cent during the year, but it remained Coopers’ largest market, accounting for 26.8 per cent of total beer sales.

Sales in NSW grew 8.2 per cent in the same period and now accounts for 26 per cent of Coopers’ volume.

In the other states, Victoria sales were up 15.3 per cent for the year, Queensland sales rose 14.4 per cent and sales in Western Australia were up 12 per cent.

The brewer said sales of the international beers distributed by Coopers — Sapporo, Carlsberg, Kronenbourg 1664, Kronenbourg Blanc and Mythos — rose 44 per cent in volume and now represented 9.8 per cent of Coopers total beer volume.

The profit retreat is unusual for the tightly controlled brewer which has managed to build year-on-year profit growth despite the downturn in the Australian beer market as drinkers turn to other beverages such as cider or wine.

Dr Cooper said Australian sales for 2013-14 fell about 1 per cent, the fifth year in a row total volume has fallen. He said a substantial factor in this decline has been the twice yearly indexation of beer excise, which put downward pressure on sales.

“It is now reaching the stage that the excise rises are counter-productive with the additional tax raised being offset by a drop in overall sales.”


07 November, 2014