E-Malt.com News article: 1867

South Australian brewer Coopers, based in Adelaide, is expecting sales of A$100 million (US$72.8 million) next financial year after booking a record trading profit of $9.6 million during 2002-03. Managing director Tim Cooper said the revenue milestone could be achieved with a larger share of the beer market in New South Wales, Victoria and Queensland. Coopers lifted turnover 5 % to $83.7 million for the 12 months to June 30, The Advertiser News reported on December 02.

Dr Cooper said the high price of barley, after last year's drought, would curb profit margins in the current financial year, with beer sales growth forecast at 10 %. Coopers' brands, led by its Pale Ale, have captured about 2 % of Australia's beer sales and the company has set a target of 4 % within 10 years. Dr Cooper was confident of meeting the target, with premium beer the fastest-growing category of an otherwise flat beer market. While 70 % of Coopers was sold in SA, he said the Sydney market was developing a taste.

"We are selling one-third more there than in Victoria and it's about twice the size of Queensland sales at the moment," he said. "Expanding interstate has one drawback – it takes a while for the kegs to come back." A $1.5 million investment in about 5000 new kegs to 40,000 this year would help growth. Dr Cooper expected malt extract sales to pick up after the 2003 harvest, helping to produce the $100 million sales target in 2004-05.

The public, unlisted family-owned business enjoyed an 18 % rise in its core beer business last financial year, a 17 % rise in malt extract sales and 11 per cent rise in home brew exports. A revamped product range and bottle shape had been among changes to its beer business, which generates two-thirds of sales.

The $9 million net profit included a $1.7 million pre-tax gain from the sale of subsidiary Leabrook Farms Honeyfrom and part-proceeds from the former Leabrook brewery site. The company's net profit in 2001-02 was $17.4 million, inflated by a $15.2 million gain from the sale of Adelaide Malting in 2001. Cost-efficiencies accompanied the company's first full year at its $40.5 million facility at Regency Park, Dr Cooper said. "With the initial commissioning problems left well behind, a successful manufacturing, distribution and selling year was experienced," he said.

The additional kegs, two more fermenters and a computer system would lead to capital expenditure of $5 million this financial year. A new bottling line, marketing initiatives, a co-generation facility with AGL and two fermenters amounted to $4 million in capital expenditure during 2002-03.


03 December, 2003