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[August 14, 2014]
Family's focus on profit as marketing hits revenue [Western Daily Press (UK)]
(Western Daily Press (UK) Via Acquire Media NewsEdge) Somerset cider maker Brothers has blamed increased competition and marketing costs for a dip in revenue, despite its pre-tax profits passing Pounds 1 million.
In accounts filed for the year to December 31, 2013, Brothers Drinks Co Ltd reported revenues of Pounds 26.1million, down from Pounds 29.7million in 2012.
In an attempt to diversify its customer base, the business incurred "significant advertising and marketing costs" associated with promoting its own brand products.
A statement accompanying the financial results said that the strategy was "considered to be in the best interests of shareholders in the long ter m".
Brothers also revealed that the fruit flavoured cider market had grown during the year, attracting new competitors which led to an overall dip in sales of its branded drinks. However, pre-tax profit rose to Pounds 1.1m last year, up from Pounds 658,136. The company's nopw intends to increase pre-tax profit and return on capital employed while "remaining conservatively financed".
Now in its 14th generation, the family-run firm has been making cider in Shepton Mallet, where it employs 110, since 1658 but hit the big time by selling pear cider at the Glastonbury Festival in 1995.
Brothers cited the loss of a major bottling customer due to administration as a principal risk.
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