The Tribune

COMMONWEALTH Brewery maintained its cautiously optimistic outlook at its first shareholders annual general meeting (AGM), following a year in which it paid out 100 per cent of profits in a collective $0.58 per share dividend.

"The first quarter results of 2012 are satisfactory and show a revenue growth of 9.5 per cent for the three months ended March 2012, in combination with a $1.5 million increase in net income," chairman Julian Francis said.

"Whilst this is cause for a moderately positive outlook, we have to keep in mind that the economic environment is still not showing full recovery. Therefore, we should remain cautious in our expectations.

"Another important condition for the continued success of this company is that we continue to operate on a level playing field where everyone pays the same dues, and the means to avoid paying are minimised. For that we will need the support of all stakeholders in our company: staff, shareholders and the Government."

Nico Pinotsis, Commonwealth Brewery's managing director, said a strong Spring break added to sales volumes and revenues, though there were cost increases as well.

"In 2011, raw materials, consumables and services were up 7 per cent," Mr Pinotsis said. "An increase in personnel costs was partly fueled by annual salary increases for cost of living and merit."

Cost of inventories rose $3.5 million, while utility costs increased by $0.7 million and excise taxes by $1.1 million. The company bore the expenses of separation and retirement benefits as it transitioned to a leaner, brand loyal and customer friendly company.

Mr Pinotsis said Commonwealth Brewery was reviewing the retail experience and trade operation in what it called an "increasingly competitive environment".

Commonwealth Brewery has 70-plus labels, 380 staff, a major recycling operation, and brands such as Heineken, Kalik, Guinness and Vitamalt.

Mr Pinotsis, who took over as managing director six months ago, said: "In order to remain successful in the demanding world of today where globalization, the opening of markets and the changing local competitive environment will affect us in the Bahamas, Commonwealth Brewery will have to continue to build on three main pillars: brands and offered portfolio, relations with trade customers and with its retail customers in stores.

"We have to continue to make sure that Kalik is seen as 'The Beer of the Bahamas', the pride of every Bahamian, that Heineken is seen as the beer for the man of the world, the global benchmark for beer, while Guinness and Vitamalt will have to continue to play their role as absolute leaders in their segment," Mr Pinotsis said, hinting at a stronger emphasis on individual brand marketing.

He added that Commonwealth Brewery would look to create what he called "win-win" opportunities with its customers, and explore how to net higher customer shopping experience satisfaction in the company's shops.

Shareholders re-elected Julian Francis, Nico Pinotsis, Eugene Ubalijoro, Algernon Cargill, Bart van den Huijsen, Ed Fields and LeRoy Archer to the Board, and re-appointed KPMG as the company's auditors.