CALGARY, AB, Feb. 7, 2022 /CNW/ - Big Rock Brewery Inc.
(TSX: BR) ("Big Rock" or the "Corporation") is
pleased to announce that its Board of Directors (the
"Board") has approved its 2022 operating and capital budget
that will support significant volume and revenue growth at its
Calgary brewery.
"We are excited to announce the approval of our 2022 budget as
we enter into the 'Fill up' phase of our long-term strategic plan.
Big Rock is primed to deliver profitable growth moving forward,"
said President & CEO Wayne
Arsenault.
The Board has approved a $1.4
million capital budget for 2022 consisting of $1.0 million to complete certain approved 2021
capital projects supporting packaging and IT digital
transformation. The remaining $0.4
million relates to new 2022 capital projects focused on
optimizing capacity in brewing and packaging in Calgary and maintenance capital.
The 2022 operating budget represents the transition of the
Corporation from the 'Gear up' phase to the 'Fill up' phase of its
long-term strategic plan. The key themes driving the 2022 operating
budget are:
- Net revenue of $48 million to
$52 million which includes a 65% to
85% year-over-year growth in the Corporation's co-packing
business;
- Improved utilization and increased productivity in the
Calgary facility that will assist
in offsetting inflation on input costs; and
- Wholesale price increases in-line with competitors across all
markets.
The 2022 operating budget does not attribute any optimization of
assets outside of Alberta nor any
resurgence in the Corporation's depressed keg sales as a result of
the pandemic.
Vancouver Restaurant Closure
Effective January 25, 2022, Big
Rock permanently closed the Vancouver Taproom & Restaurant as a
result of the financial toll the continuing COVID-19 pandemic and
related restrictions have had on these operations. The brewing
operations at the location remain unchanged and continues to
service the Vancouver and
British Columbia markets.
Forward-Looking Information and Future-Oriented Financial
Information
Certain statements included in this news release constitute
forward-looking statements. These statements relate to future
events or the Corporation's future performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as ''anticipate'', ''believe'',
"continue", "could", ''estimate'', ''expect'', "intend", "may",
"might", "plan", "potential", "predict", "project", "seek",
"should", "targeting", "will" and other similar expressions. All
forward-looking statements are based on beliefs and assumptions
based on information available at the time the assumption was made.
These forward-looking statements are not based on historical facts
but rather on expectations regarding Big Rock's business plan and
focus and the results thereof; expectations regarding the
Corporation's 2022 operating and capital budget; expectations
regarding Big Rock delivering profitable growth; the anticipated
benefits to be derived from the Corporation's 2021 and 2022 capital
projects; anticipated revenue for 2022; anticipated growth in
the Corporation's co-packing business; expectations that the
Corporation will improve its utilization of the Calgary facility and the anticipated benefits
thereof; and anticipated material price increases in-line with
competitors across all markets. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and other
factors that may cause actual results, levels of activity,
performance or achievements to differ materially from those
anticipated in such forward-looking statements. Although the
forward-looking statements contained in this news release are based
upon what the Corporation believes to be reasonable assumptions, no
assurance can be given that these expectations will prove to be
accurate and such forward-looking statements included in this news
release should not be unduly relied upon by investors. These
forward-looking statements are made as of the date of this news
release. The Corporation does not undertake any obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, unless
required by law.
With respect to the forward-looking statements and FOFI (as
defined below) contained in this news release, management has made
assumptions regarding, among other things: its ability to execute
on its business plan in a timely manner and the results thereof;
volumes in the current fiscal year will remain constant or will
increase; price increases will be accepted by customers and
consumers; input costs for brewing and packaging materials will not
materially increase or decrease; there will be no material change
to the regulatory environment in which Big Rock operates; there
will be no material supply issues with Big Rock's vendors and that
Big Rock will be able to use its new production capacity and
increase volume with co-packing agreements.
Factors which could cause future outcomes to differ materially
from those set forth in the forward-looking statements include, but
are not limited to: (i) the ability to obtain sufficient and
suitable financing to support operations, development and sale of
products; (ii) the ability to execute partnerships and corporate
alliances; (iii) the ability to attract and retain key personnel
and key collaborators; (iv) the ability to execute on the
Corporation's business plan and the timing and results thereof; (v)
the market for the Corporation's products; (vi) market and general
economic conditions; (vii) the impact of a significant disruption
to the Corporation's production and operations; (viii) the
inability to fill its production capacity and grow volume with
co-packing agreements; (ix) the inability to remediate
manufacturing issues as they arise; * the worldwide economic and
social impact of the COVID-19 pandemic; (xi) the duration and
extent of the COVID-19 pandemic; (xii) the inability to improve the
Corporation's utilization of the Calgary facility; and (xiii) the unwillingness
of Big Rock's customers and consumers to accept price increases.
Readers are cautioned that the foregoing list of factors is not
exhaustive. The forward-looking statements contained in this news
release are expressly qualified by this cautionary statement.
This news release also contains future oriented financial
information (in each case, "FOFI") about the Corporation's
prospective results of operations including, without limitation,
expectations regarding Big Rock delivering profitable growth; the
anticipated revenue for 2022; and the anticipated growth in
the Corporation's co-packing business. Any FOFI contained in this
news release regarding prospective financial position is based on
reasonable assumptions about future events, including those
described above, based on an assessment by management of the
relevant information that is currently available. The actual
results will likely vary from the amounts set forth herein and such
variations may be material. Readers are cautioned that any such
FOFI contained herein should not be used for purposes other than
those for which it is disclosed herein. Such information was made
as of the date of this news release and the Corporation disclaims
any intention or obligation to update or revise any such
information, whether as a result of new information, future events,
or otherwise, unless required pursuant to applicable law.
About Big Rock Brewery Inc.
In 1985, Ed McNally founded Big
Rock to contest the time's beer trends. Three bold,
European-inspired offerings – Bitter, Porter and Traditional
Ale – forged an industry at a time heavy on easy drinking
lagers and light on flavour. Today, our extensive portfolio of
signature beers, ongoing seasonal offerings, six ciders (Rock
Creek Cider® series), custom-crafted private label products and
other notable, licensed alcoholic beverages keeps us at the
forefront of the craft beer revolution and still proudly contesting
the beer and alcoholic beverage trends of today. Big Rock has
brewing operations in Calgary,
Alberta, Vancouver, British
Columbia, and Toronto,
Ontario. Big Rock trades on the TSX under the symbol "BR".
For more information on Big Rock visit
www.bigrockbeer.com.
SOURCE Big Rock Brewery Inc.