Arran Brewery made a trading loss of £108,162 in 2016 despite a jump in sales to over £1.3m, according to figures just lodged with Companies House (December 22, 2017).
Michaluk put the six-figure loss down to bad debts, with over £50,000 written-off. Distribution costs of almost £60,000 more than anticipated were also blamed.
He said Arran had clearly got its distribution strategy “wrong”. To address this, the company’s Brewery Manager has been transferred into a logistics role and is undertaking further training. Credit control procedures have also been tightened up.
An upbeat Michaluk said the brewery’s balance sheet remained strong despite the loss.
Commenting on Arran’s distribution woes, he added: “There is demand for our products throughout the UK but we need to crack getting it there at a sensible price so we, as well as our customer, can make a sensible profit.”
