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Genesee sales, earnings down.

Genesee sales, earnings down

Genesee Corp., parent company of the Genesee Brewing Co., Inc., recently announced consolidated sales and earnings for fiscal year ended April 30.

Sales for the fiscal year were approximately $157 million compared with $160 million for the previous year. Net earnings were $2.7 million for the fiscal 1989 period compared to $6.5 million for the previous year.

According to the company, cost of ingredients for brewing operations, particularly barley, increased by approximately $5 million as a result of last year's drought. According to company officials, this was the primary reason for the decline in earnings. They noted that despite these increases, brewery operations were profitable for the year. In addition, the corporation noted that costs associated with the acquisition and strategic restructuring of Ontaro Foods adversely affected net earnings.

Officials stated that the decline in malt beverage sales reflects a number of factors, including reduced sales of draft products and continued competition from heavily advertised national brands.

John L. Wehle, Jr., president and chief executive officer, stated, "While fiscal 1989 was a year of unprecedented challenge, we maintained our long history of profitability in large part because of the dedicated efforts of our employees.

"We continue to look to the future with the development of several new marketing programs and promotions, the most significant being the introduction of new packaging for our malt beverage products."

During the third quarter, the Genesee Brewing Co. introduced new packaging designs which present a more contemporary look and reinforce Genesee's image as a producer of quality beers and ales, the Rochester, NY brewer reported.
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Title Annotation:Genesee Corp.
Publication:Modern Brewery Age
Date:Jul 31, 1989
Words:266
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