DESNOES & Geddes said the performance of its flagship Red Stripe brand in particular has resulted in an overall eight per cent increase in the sales of its products during the first quarter ended September 30, 2000 when compared with the corresponding period last year.
Sales of Red Stripe beer increased by 9.2 per cent, while Heineken beer went up by 8.6 per cent, contributing to operating profit before taxation and exceptional items of $290 million, a 13.2 per cent increase over the first quarter of 1999.
However, in a release yesterday, D&G said sales of Guinness, Dragon and Malta remained in decline, but quoted president John Irving as saying that a "lot of effort is going into rectifying this situation."
Sales of Guinness went down by 2.6 per cent, Dragon by 6.9 per cent and Malta by 3.1 per cent.
Mr. Irving said sales of Red Stripe continued to drive the company's volume performance both in the domestic and export markets, with the United States market up by 21.3 per cent and other markets by 13.3 per cent. The company said the recently launched Red Stripe Light brand has enjoyed a positive response from consumers and its volumes were on target.
The D&G president, said, however, that while the unaudited results show a 13.2 per cent increase in operating profit, "the year on year improvements will be less marked during the remainder of the year due to increased costs of doing business." He said fixed general and administration costs remained in line with last year due to the company's continued efforts to reduce its fixed price base, which would be supported by the recently announced changes in management structure.
