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· Posted on
February 21, 2024

Coopers Brewery cops a sales whack 'coz we just ain't chuggin beers like we used to

The last year hasn't been kind to Coopers Brewery... but it reckons the 2023 financial year is its year to shine.

What's the key learning?

  • Coopers Brewery has seen a 25% drop in net profit and 3.5% drop in revenue over the past 12 months.
  • The Coopers reckon that the 2023 financial year is their year to shine by balancing their traditional beers and with more innovation - but not the innovation that will cannibalise its existing sales.
  • Product cannibalisation is the loss in sales volume or revenue when a brand launches a new product or when a new product takes sales away from existing products.

👉 Background: Coopers was founded way back in 1862 by Thomas Cooper. Since then, it has grown to become the largest Australian-owned brewery - and owns around 5 per cent of the national beer market.

👉 What happened: But the last year hasn't been kind to the Cooper clan. In fact, Coopers Brewery has seen a 25% drop in net profit and 3.5% drop in revenue over the past 12 months.

👉 What else: But Coopers reckons 2023 financial year is their year to shine by balancing its traditional beers and with more innovation. But not the innovation that will cannibalise its existing sales.

What's the key learning?

💡Product cannibalisation is the loss in sales volume or revenue when a brand launches a new product. And that new product takes sales away from existing products.

💡Coopers reckon that new, swanky products may erode the sales of their core lines. But cannibalising existing product lines is also the key to innovation. Because if you don’t self-cannibalise, you’re probably leaving it to other upstarts, who are more than happy to take on the challenge.

💡Case in point: Apple released the iPod and then cannibalised it with the iPod Nano, iPad and then ofcourse the iPhone which squashed them all. And now nobody can catch Apple.

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