Coopers Brewery has boosted revenue and profit in a challenging beer market

Coopers Brewery has defied a challenging beer market to post increased profits, although a boost in pub sales wasn’t enough to stop a modest slide in beer sales.

Dr Tim Cooper from Coopers Brewery.

Beer sales in Australia held up well for the first nine months of the past financial year, before taking a turn for the worse around April, likely due to cost of living pressures taking their toll, Coopers Brewery managing director Tim Cooper says.

Coopers Brewery has reported a full year net profit of $19.8m, up from $19.2m the previous year, despite beer sales slipping 2.3 per cent to 77.6 million litres, on the back of a 3.5 per cent decline the previous year.

Revenue for the full year was $287m, up 5.9 per cent.

Dr Cooper said the company’s sales were in line with industry trends, with beer sales across the market up about 3 per cent year on year until about April, when they turned slightly negative - where they have remained.

“I think it’s to be expected when you factor in cost of living pressures, people under pressure either for rent or mortgage repayments, and so forth,’’ Dr Cooper said.

Coopers Brewery’s keg sales increased in FY23, rising 26 per cent over the previous year as people returned to pubs and other licensed venues, however keg sales were still 14 per cent lower than pre-pandemic sales levels in 2019.

The company’s packaged beer sales were 5 per cent lower year on year.

Dr Cooper described the result as “steadfast ...in a challenging economic environment’’.

“The national beer market remains subdued, impacting sales volumes across the country,” Dr Cooper said.

“However, Coopers outperformed the national market in the latter half of the financial year, holding steady while overall industry volumes started to fall from April.

“A highlight has been the return of patronage to hospitality venues following the industry lows experienced during the pandemic shutdowns. It has been great to see people back in pubs.’’

Coopers added a new beer to its core range in August, launching its Australian Lager, which it will back with a concerted marketing campaign over the peak summer period.

While Coopers is best known for its ales, Dr Cooper said the company had been making lagers since 1968, with “mixed fortunes over the decades’’.

“We have had good success with the Coopers Dry and we’re now hoping for good success with the Australian Lager as being a more customary full strength lager.’’

Coopers’ malted barley sales tonnage rose 12.6 per cent with exports to food and beverage manufacturers in Asia up by 26 per cent.

Homebrew sales were depressed despite cost-of-living pressures which would traditionally fuel higher demand for DIY brewing.

Dr Cooper said the company’s new visitor centre, microbrewery and whisky distillery at its Regency Park headquarters remained on track for an opening next year.

The microbrewery and whisky distillery plant and equipment have been constructed in England and Scotland and are expected to arrive at Coopers in coming weeks ready for installation he said.

“This is a significant and very exciting undertaking for Coopers,’’ Dr Cooper said.

“We’re pleased with the progress to-date and look forward to welcoming visitors from across Australia and overseas once it’s completed.’’

Originally published as Coopers Brewery has boosted revenue and profit in a challenging beer market