Beverage supplier Hey Song Corp (黑松) expects revenues to grow this year from last year, supported by threefold growth in its alcoholic beverage distribution business, a company executive said yesterday.
Hey Song chairman Chang Pin-tang (張斌堂) predicted that its revenue from alcohol sales would reach about NT$3 billion (US$88.95 million) this year, up from NT$990 million last year, boosted by the company’s new distribution contracts with Kinmen Kaoliang Liquor Inc (金門高粱) and French cognac maker Remy Martin.
“Rising sales contributions from our liquor distribution business will help the company weather the traditional year-end low season,” Chang said.
In addition, the company announced that it has signed a five-year manufacturing and marketing partnership contract with Lipton, and that its upgraded bottling and paper carton plant is to begin manufacturing Lipton tea products next month, with mass production slated to begin in July.
“We aim to see our annual contract manufacturing volume for Lipton reach 10 million units per year by 2020 — boosting the firm’s sales by NT$1 billion,” Chang said.
Chang is also expecting contract manufacturing sales to rise to about NT$600 million this year, compared with NT$340 million last year.
The company also announced plans to invest between NT$800 million and NT$1 billion to open new beverage carton and bottling production plants, which are expected to be launched in April next year.
Last year, sales from distributing sake made by Japan’s Choya Umeshu Co Ltd grew 63 percent year-on-year, while the company’s own sake brand posted an annual gain of 27 percent.
Last year, the company’s sales rose 5.65 percent year-on-year to NT$6.36 billion, of which contribution from beverages grew 7.78 percent to NT$3.74 billion, with alcohol distribution revenues rising 30.77 percent to NT$990 million, company data showed.
However, the firm’s revenue from alcohol sales last year was less than the NT$1.57 billion recorded in 2013, after its distribution deal with Kinmen Kaoliang Liquor Inc expired in September that year. The deal was inked in October 2010.
The company will continue to focus marketing cognac and kaoliang products to the younger demographic, who have began to favor whisky, Chang said.
Hey Song’s net income in the first three quarters of last year was NT$567.17 million, an increase of 80.72 percent year-on-year, with earnings per share during the period of NT$1.41.
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