The Tribune

By NATARIO MCKENZIE

Business Reporter

nmckenzie@tribunemedia.net

and NEIL HARTNELL

LIQUOR merchants and beer lovers are hoping to avoid a Kalik shortage after Commonwealth Brewery suffered a massive hit from Hurricane Matthew, which may cause a production halt lasting “several weeks”.

Retailers said they were trying not to worry about any supply shortage, as the BISX-listed brewer waits for the results of insurance and construction assessments at its Clifton production plant.

“We’re good on our supplies for now, I think,” one liquor store operator, speaking on condition of anonymity, told Tribune Business.

“I’m thinking we’ll be good for a while until we have to order some more cases, but we’re not too bad, I ain’t worried about the right now.”

Another said: “We stocked up ahead of the hurricane, cases of Kalik and what’s not. I think we’ll be OK but I hope they get sorted out soon.”

Commonwealth Brewery executives could not be reached for comment yesterday, while calls to Dennis Hanna, its retail and distribution manager, were not returned prior to press time.

However, sources familiar with the situation told Tribune Business that the Clifton-based brewery had suffered “extensive” damage to portions of its roof, with the wind and rain compromising parts of its production plant.

“The damage has been extensive to the roof, and production of some of the bigger lines, such as Kalik beer, has been halted and will not recommence for several weeks,” one source said, speaking on condition of anonymity.

Tribune Business understands that this is the first time Commonwealth Brewery has found itself in such a situation in the aftermath of a storm, showing just how devastating the impact of Matthew’s Category Three-Four winds were close to the storm’s eye.

It was made clear to this newspaper that the only potential issue is supply and production, with the storm’s impact having no impact on Commonwealth Brewery’s staffing levels going forward.

However, the situation will be a blow to Commonwealth Brewery’s 2016 financial performance, reducing sales and increasing costs (repairs and restoration) until insurance claims are paid.’

The company, while 75 per cent owned and controlled by international brewing giant, Heineken BV, has 25 per cent of its equity held by Bahamian public shareholders, the largest of whom is the National Insurance Board (NIB). They, too, will feel Matthew’s impact.

Given Heineken’s deep financial pockets, and the likelihood that the Brewery is fully insured, the hurricane’s effects will not be felt by Commonwealth Brewery long-term.

Tribune Business sources said the focus was now on completing repair work in the shortest possible time, so as to prevent, or at least minimise, any shortages with Kalik and other locally-produced beverages such as Heineken.

“Their attention is focused on getting repair work done as quickly as possible, and not having too much interruption in the supply of Kalik, because of its huge turnover and demand,” one source said.

In the meantime, merchants and Bahamian consumers alike will have to hope existing stocks do not run dry.