b'6 MANAGING DIRECTOR & CHAIRMANS REPORT MANAGING DIRECTOR & CHAIRMANS REPORT 7T TR RO OP PE ER R L UA The Coopers portfolio was expanded withA new strategic direction in marketing was L UAN the limited-release of two new beers, Hazylaunched under the brand positioning, ForeverNN NA IPA and Australian IPA, while Session Ale wasOriginal. This reinforces Coopers as an authenticA S MANAGING renamed and relaunched as Pacific Pale Aleand unswervingly confident brand, with a deepSR RE EP PO DIRECTOR & to increase its appeal to consumers seeking acommitment to its long heritage and innovationOCO CHAIRMANS summer-style beer. in brewing. COREPORTIn June, Coopers Best Extra Stout, one of theDuring the year, Coopers received accreditation for brewerys oldest beers, became the latestenvironmental standard ISO 14001, and health and to be packaged in aluminium cans. Stoutsafety standard ISO 45001. These achievements continued to perform strongly, with sales ofcapitalised on the numerous sustainable practices 3.9 million litres, approaching the levels lastin place across the brewery, and the good level of seen in the 1950s. work health and safety measures.There were mixed results across CoopersThe closure of the West End Brewery in Thebarton 2021partner brands, with Sapporo a standoutwas a disappointing reflection on the legacy of performer and Carlsberg volumes remainingbrewing in South Australia. It was also a timely solid, while sales channel constraintsreminder of the ongoing challenges facing our hampered growth opportunities across otherindustry, with per capita beer consumption down international beers in the portfolio. 20% over the 2008 to 2018 financial year as last measured by the ABS, and 60% lower than in 1975. Strong demand for Coopers high-quality malt, particularly from new and existingNonetheless, the brewing industry still employs international customers across Asia, has the13,500 people directly, and contributes nearly plant operating at near capacity.$3 billion in excise and GST each year. Coopers contributes over 5.5% of this, as well as more than Home-brewers have also remained active$10 million in corporate tax and other federal taxes.globally, pushing export sales of DIY beer up by 31%, while domestic sales have moderatedAs Coopers enters its 160th year in a strong position, after the strong sales last year. we extend our thanks on behalf of the Coopers Board and management to all our employees for While the effects of the global pandemicGiven this scenario, it was timely that Profit-before-tax for the 2021 financial their commitment and performance during these lingered across domestic and internationalupgrades to the brewerys keg line wereyear was $36.5 million, compared with challenging times, and to our customers, suppliers markets, Coopers enjoyed reasonableundertaken, at a total cost of more than $34.3 million the previous year. Lowerand shareholders for their ongoing support and trading conditions in the 2021 financial $1.7 million, in addition to the refurbishment operational and external expenses had andedication to the company.year, and fared better than could have of 55,000 kegs. impact on the bottom line, whereas last year been expected. was impacted by the return of kegs from trade. Across Australia, the varied experiencesThese results are solid, but below the peaks The challenges faced by the hospitalityassociated with the pandemic were reflectedachieved when keg sales were more buoyant.industry, both in Australia and abroad, as wellin the state-by-state sales results, while export as related consumer spending behaviour,sales increased by 1.8%. Debt was paid down by $30.1 million, while had divergent impacts on the performance offully franked dividends of $13.50 per share packaged, bulk and DIY beer. Sales volumes rose 6.6% in South Australia,were paid in the financial year.6.0% in Northern Territory, 3.0% in Queensland, Total beer sales, excluding non-alcoholic2.6% in Western Australia, and 1.8% in Victoria/ Consumer research over the past yearDr Tim Cooper AMGlenn Cooper AM beers, reached 82.3 million litres for the twelveTasmania, while New South Wales/ACTcontinues to highlight the gravitation towardsManaging Director Chairmanmonths to June 30, 2021, a 2.8% increase onremained stable with a decline of 0.2%. authentic brands that can be trusted. Having the 2020 financial year sales volume, in a thirda reputation as a reliable, high-quality, locally year of growth. Cans have continued to grow, and nowmade, and affordable product has Coopers represent 29.4% of packaged beer sales.well-placed in this market. We remain focused Growth in packaged beer compensated forCoopers Original Pale Ale is the clear leaderon justifying the loyalty of our consumers, and bulk sales which remain depressed by thein this format, but is well supported by XPA,the commitment of our dedicated pubs and severe downturn in hospitality trade. Sparkling Ale and Mild Ale, with the latterother venues.Packaged beer sales reached their highestbenefiting from a strong trend towardsvolume ever, but demand for kegs remainedmid-strength beer.well below pre-COVID-19 levels.'