CANADA: Clearly Canadian sales fall in Q3
Clearly Canadian Beverage Corporation said yesterday that it recorded a net loss for the three months ended September 30, 2004 of $645,000 (or $0.09 per share) on sales of $3,273,000.
The net loss is an improvement on the same period last year when it reported a net loss of $781,000 (or $0.12 per share) on sales of $3,849,000. However, the figures represent a decline in sales of $576,000 over the same period in 2003.
Net loss for the nine months ended September 30, 2004 was $1,935,000 (or $0.26 per share) on sales of $9,338,000 compared to net loss of $2,086,000 (or $0.31 per share) on sales of $10,888,000 for the same period in 2003. This represents a decline in sales of $1,550,000 over the same period in 2003.
Sales were hit by the discontinuation of the Reebok water brand clearly Canadian was selling. Reebok discontinued its licensing agreement with the company as of December 31, 2003.
However, the management also believes sales performance for brand Clearly Canadian in the third quarter of 2004 was adversely affected due to working capital constraints, which limited the company to supplying product at existing distribution levels. Management also believes that the inability to properly fund field marketing activities and to support sales drives in the first nine months of this year resulted in missed opportunities to expand distribution and availability.
While these factors had a negative impact on the company's sales in the third quarter, the company did say that its private label business experienced continued growth in the period and in the nine months ended September 30, 2004, as compared with the same periods in 2003.
"Clearly Canadian's management remains focused on pursuing additional financing to support the Company's operations and relations with existing suppliers and vendors and to allow for more aggressive field marketing and sales activities for our beverage products," said Douglas L. Mason, president of Clearly Canadian Beverage Corporation.
"The roll-out of reformulated Clearly Canadian sparkling flavoured water through a national network of distributors is now largely complete. In our current financial condition we continue to face considerable challenges to increase availability for the brand. Consistent with the Company's strategy in the first nine months of the year, we intend to work closely with our distributors to continue collaborative efforts to develop additional focus on brand Clearly Canadian and open new accounts," said Mason.
Sectors: Soft drinks
- Ten questions for Diageo - Analysis
- Have spirits companies forgotten the mainstream?
- Does alcohol accelerate the onset of dementia?
- How craft beer has shattered its US shackles
- Pernod's mood darkens over India - Analysis
- Moet Hennessy unaffected by LVMH Dior buy
- Distell acquires majority stake in Cruz Vodka
- BrewDog moves into spirits with LoneWolf launch
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Portman Group heads to Tesco for new chief exec
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Craft Beer: Coming of Age or Past Its Prime?
- Myanmar - ISA Country Report