CANADA: Big Rock Brewery slips into red as Q1 volumes fall
- First-quarter net loss of CAD310,000 (US$284,000)
- Net sales in three months to end of March slip 20.6% to CAD7.1m
- Operating loss in Q1 of CAD420,000
- Volumes drop 19%
Big Rock has fallen into the red in this year's first quarter
Big Rock Brewery slipped into the red in its first quarter, as a scaling back in price promotions and increased competition led to a drop in volumes.
The Canada-based craft brewer said net losses in the first three months of 2014 came in at CAD310,000 (US$284,000), compared to a net profit of CAD92,000 in last year's Q1. Sales in the period slid by 20.6% to CAD7.1m, as volumes fell by 19% to 34.1m hectolitres.
Operating losses in the three months came in at CAD420,000.
The company said it has been “disproportionately affected” by “significantly more competitive activity” in its key market of Alberta, compared to other regions in the country.
“Big Rock's shift in emphasis from volume growth to a focus on maximisation of cashflow and operating profit has meant a deliberate reduction in volumes as promotional pricing activities were scaled back,” the group added.
Looking ahead, Big Rock said it plans to release 25 limited-edition products over the rest of 2014, which it expects to boost Q2 and Q3 volumes.
A new bewery is also under construction in British Columbia, which is expected to start production by this year's third quarter, Big Rock said.
To read the company's full statement, click here.
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