Rye River Brewing Company Records Increase In Revenue And Profits For 2020; Appoints New Chairman
Rye River Brewing Company has recorded an increase in revenue and profits for 2020.
As reported by The Irish Independent, according to a statement from the Irish craft beer company, Rye River Brewing Company's total revenue increased by 12% year-on-year in 2020 to €7.1 million, according to a statement from the group, and its operating profit increased by 80% to €279,650.
A 44% decrease in the company's interest payments following the sale and leaseback of its brewery in Celbridge, Co. Kildare, carried out in March of 2020 reportedly contributed to an overall net profit of €156,398 last year, which reportedly followed a €62,617 net loss the previous year.
The Irish Independent quotes Rye River Brewing Company as saying that it continued to strengthen its status as the "number one domestic retail independent brewer", with overall volume growth of 10% last year despite "significant reductions" in export and on-premises sales.
Sales of the company's products in shops and off-licenses in Ireland reportedly increased by 65% in 2020, with brands such as McGargles, Rye River Seasonal, Solas, Grafters and Crafty Brewing Company reportedly performing strongly, offsetting a 75% reduction in on-trade volumes and an 89% decrease in core brand exports.
Rye River Brewing Company, which reportedly has 56 staff members, reportedly also won 30 awards at the 2020 World Beer Awards, including the awards for "most decorated brewery in the world" and "best stout in the world", the latter of which was for its McGargles Export Stout.
The company reportedly invested over €400,000 in its ongoing capital expenditure programme last year to meet growing demand by adding a new packaging line and three new 10,000 litre vessels, which reportedly brings its number of fermentation vessels to 23.
The company reportedly said that its 23 fermentation vessels along with seven beer tanks will reportedly allow it to capitalise on growing national and international demand, and that investment is continuing this year, with a move to a 24/7 brewing shift pattern.
The company reportedly also said that it is working on a number of "efficiency initiatives" to manage costs in a way that helps to offset increases in raw materials caused by Brexit-affected supply chains and increasing inflation.
The Irish Independent quotes Rye River Brewing Company founder and managing director Tom Cronin as saying, "2020 was an exceptionally challenging year for the hospitality sector at home and abroad.
"The strong results have enabled further investment in the business which, together with recent board additions, leaves Rye River well placed to increase sales as Ireland and our export markets emerge from COVID-19 and ultimately achieve the ambitious growth plans for the business."
In other Rye River Brewing Company news, Brockmans Gin founder Neil Everitt has become the new chairman of the company.
According to The Irish Independent, Everitt said that he moved to Ireland after he ended his executive management position at UK gin brand Brockmans, and that he has big ambitions for Rye River Brewing Company both in Ireland and overseas.
The Irish Independent quotes Everitt as saying, "The business is really successful here in Ireland, and I think there is some big untapped potential overseas. With COVID over the last 12 months, it has obviously been challenging.
"In spite of that, the business grew retail sales last year by over 50%. That’s a pretty good performance."
The Irish Independent also quotes Everitt as saying that he is planning to invest in the business "at the appropriate time", and, "I don't want to be taking on paid employment for the salary. I want to be investing in growth projects."
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.