CANADA: Distribution costs hit Brick Brewing

By | 13 December 2006

Canadian beer maker Brick Brewing has seen the set up of a distribution network in Quebec hit earnings during the third quarter.

The Ontario-based brewer said yesterday (12 December) that net income fell to C$61,000 (US$53,006) during the three months to 31 October, down from C$1m a year earlier.

Brick Brewing executive chairman and founder Jim Brickman said the one-off costs of setting up direct distribution in Quebec had weighed on earnings.

He said: "This one-time expense related to a reduction of Quebec inventories, although we believe that this strategic investment will provide us with improved distribution capabilities for both Brick and partner brands in Quebec into the future."

Revenues inched up 1% to C$8.7m - but not enough to satisfy Brick's president and CEO Doug Berchtold.

"Our third quarter performance did not meet our expectations," Berchtold said. "We are taking more aggressive steps to fully complete our production transition to Kitchener by early in the New Year. Both the Quebec distribution transition and the production transition remain fundamental to our overall strategy. We continue to believe that both initiatives will provide ongoing financial benefits in the future."

Sectors: Beer & cider

Companies: Brick

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