- Waterloo Brewing (TSX:WRB) awarded ‘co-pack’ contract by Hiram Walker & Sons
- Partnership will produce a line of ABSOLUT-branded vodka cocktails and alcoholic sodas
- Co-pack contracts are valued at C$40 million
- WRB shares were down 0.64 per cent and traded at C$3.12 per share
Waterloo Brewing will produce and assortment of cocktails and alcoholic sodas with Hiram Walker & Sons under a three-year contract announced on February 10.
The ‘co-pack’ contract will produce a new line of vodka infused drinks, using the ABSOLUT brand.
This, and in addition to two previous contracts, is worth about C$40 million to the company in expected incremental revenue over the three-year period.
President and CEO George Croft said: “Hiram Walker & Sons Limited’s choice to work with us continues to reaffirm our strategy to be the best co‐pack producer in the beer and alcoholic beverage category in Canada.”
COO Russell Tabata said it was a positive move for both parties and is optimistic about the collaboration.
“Waterloo Brewing’s capability to provide high quality, highly efficient production along with superior customer service, continues to drive impressive growth in our co‐packing business,” he said.
“Our strategic use of capital is clearly paying dividends in the short term.”
Prior to Hiram Walker & Sons, Waterloo Brewing signed a ‘co-pack’ contract with Carslberg Canada in December 2019 to be the exclusive producer of the Somersby cider drink.
At the time Croft said the strategy was a key driver of business growth and brand performance.
“The compounded annual growth rate of our co-pack business over the last three years is 29 per cent and is projected to be over 45 per cent by the end of the next fiscal year,” he said.
“Our strategic investment of capital in expanding our production capabilities and capacity over the last six years is directly responsible for this compelling track record,”
“We are motivated to be the best co-pack producer in the beer and alcoholic beverage category in Canada (and) Carlsberg choosing to work with us shows that we’re on track to be precisely that.”
Carlsberg Canada president Sebastiaan Besems said the partnership was “integral to building the brand in Canada” and to deliver “innovation and improving our service to customers.”
Shares were down 0.64 per cent and traded at C$3.12 per share.