Woolworths signs deal with its craft brewery in the West

Posted by AFN Staff Writers on 19th November 2012

Woolworths and the Western Australian based craft beer company, Gage Roads Brewing, have signed a three year supply deal. The relationship is a beneficial spin-off from the closure of the Perth-based Swan Brewery by Lion.

The Gage Roads Brewing company makes its own craft beer brands Wahoo Premium Ale, Gage, Sleeping Giant and Atomic Pale Ale which will be sold at Woolworths, together with Woolworths’ brands Dry Dock, Clipper Light, Castaway and Sail & Anchor.

Woolworths also owns a 25 per cent shareholder stake in Gage Roads Brewing.

At the Gage Roads Brewing annual general meeting earlier this month, Managing Director John Hoedemaker said that Gage Roads was in a “good position to benefit” following the closure of the Swan Brewery and the strong trend towards craft beer sales.

“With our increased capacity and lower cost structure, Gage Roads is planning to increase its draught beer presence in WA. With the demise of Swan Brewery, the banner of ‘largest WA brewery’ passes to Gage Roads,” Mr Hoedemaker said.

Gage Roads Brewing announced at the annual general meeting that through a $12.4 Million investment, it will double its brewing capacity to 3 million cartons per annum by 2014, as well as reducing operating costs by 50 per cent.

New Sail & Anchor beer range sold through Woolworths, and produced by Gage Roads Brewing.