Last week, Good Drinks Australia published its end of year financial results, revealing strong profit and volume growth despite challenging trading conditions. This includes $112 million in revenue, a 17% increase to profits before interest and tax, and a 7% increase to total volume produced. According to Chairman Ian Olson, this “was a pleasing result amidst a subdued economic environment, marked by falling consumer spending power.”
Slightly further back, Good Drinks Australia also clinched two Gaining in Popularity titles at the 2024 Australian Drinks Awards, with Magners Cider and Gage Road Hazy As both winning in their respective categories. At the time, Drinks Trade caught up with Mick McKeown, Sales and Marketing Director at Good Drinks Australia, to discuss the group’s efforts to redirect Magners Cider back into growth. According to McKeown, the secret lies in playing to a brand’s strengths: "Magners is an amazing brand on premise. Our field team have been able to go in there and sort of reignite a bit of passion around Cider."
McKeown also told Drinks Trade that Good Drinks Australia has been investing heavily into its sales and marketing programs, with total expenditure over FY24 up $500,000 to $18.9 million.
“We're putting on more field staff as well, so we're trying to grow; and we can see that a lot of [other drinks groups] are contracting,” he said.
“We've got to a size now where we're the fourth biggest beer supplier and we’re the third biggest cider supplier, so we just have to work harder with customers to earn their trust and to build a portfolio of brands that they are comfortable to help promote.”
In its Financial Year 2024 results, Good Drinks Australia recorded a 7% volume increase to 27.2 million litres despite the overall retail beer market receding 4.2% by volume. It also reported underlying earning before interest and tax of $8.2 million, up 17% on the year before and with growth across both its own and imported brand portfolios. The final figure was lessened as a result of writing off the Atomic brand and brewpub, which officially closed the doors to its Redfern venue last Sunday 1 September.
In its full year results, Good Drinks Australia said “trading conditions continue to be challenging and combined with high rent, the business is unsustainable. With the sale process unsuccessful and the lease nearing the end of its term, we have taken a decision to vacate the site and discontinue trade to minimise further losses in FY25.”
Atomic's Sydney microbrewery and taproom was originally built in 2020 and cost around $3 million. The Impairment of the brand and venue has been valued at $4.5 million and has been associated with the hospitality side of the business. Aside from the this, Good Drinks Australia recorded strong gains in its on-premise business, which includes Matsos Sunshine Coast and Gage Road Fremantle venues.
In the wake of these results, Drinks Trade reached out to Mick McKeown again to discuss Good Drinks Australia’s current positioning along with its recent signing as a Category One member of the Drinks Association. To read that conversation in full, stay tuned for the release of Drinks Trade Spring #92, which is on its way to the printers now.
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Good Drinks Australia lands exclusive distribution deal with Rekorderlig Cider
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