CANADA: Leading Brands posts loss
Integrated beverage company Leading Brands blamed large increases in discounts, rebates and slotting fees for its 2005 fiscal year loss of US$1.3m.
The Vancouver-based company posted the loss after turning a profit of US$626,000 the year before. Gross revenues were up 14% in 2005 to US$39.3m.
The company also reversed a declining revenue trend halfway through the year, with fourth-quarter gross revenues up 34% on last year.
Leading Brands said "substantial" increases in slotting fees and promotions supporting brands such as TrueBlue had led to a near-200% increase in discounts, rebates and slotting fees to US$2.5m.
Chairman and CEO Ralph McRae said: "Sales growth in the first quarter of 2006 continued at a robust pace. With our margin-enhancement initiatives completed during the last quarter, we are once again pushing full steam ahead on expanding distribution of our brands."
- A-B InBev and its SABMiller divestments - Focus
- SABMiller in Cent'l & E Europe - What is for sale?
- Where does AB InBev see the future of beer?
- Is the wine industry confusing its consumers?
- Are consumers getting tired of consuming?
- Private equity poised for SABMiller Europe buy?
- Remy Cointreau names new Travel Retail exec
- Leonardo DiCaprio joins Runa drinks board
- AB InBev to sell SABMiller Cent'l, E Europe assets
- Pernod Ricard to widen Our/Vodka sales reach
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Carbonates in India
- Consumer and Market Insights: Spirits Market in the US