Business
Big Rock Brewery Inc. Announces Undertaking of Significant Cost-Cutting Measures
Big Rock Brewery Inc. Announces Undertaking of Significant Cost-Cutting Measures C...
About this update from Big Rock Brewery Inc.
[{"type":"text","content":"\n\n\n\nBig Rock Brewery Inc. Announces Undertaking of Significant Cost-Cutting Measures\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, May 29, 2019\n\n\n\nCALGARY, May 29, 2019 /CNW/ - Big Rock Brewery Inc. (TSX: BR) (\"Big Rock\" or the \"Corporation\"), today announced it has undertaken significant cost-cutting measures, including reductions to the Corporation's workforce, in response to the persisting regulatory environment for brewers of its size in Alberta.\n\n \n \n\n \nThe 104% increase in the net Alberta beer mark-up (provincial tax) imposed on Big Rock by the previous Government of Alberta in late 2018 (being a 160% increase since 2016) has forced the Corporation's senior management to take immediate cost-cutting measures as the increase in the tax on Big Rock's beer in Alberta has eroded the profitability achieved by Big Rock in 2018.\nBig Rock, an Alberta-based brewer and employer, has proudly supported local jobs and community events while contributing to the Alberta economy as a significant local purchaser and reliable taxpayer in the province for 34 years. If the current provincial tax framework for beer in Alberta persists through year-end of fiscal 2019, Big Rock's net Alberta provincial liquor tax charges of $10.7 million for fiscal 2018 are estimated to increase to greater than $21 million for fiscal 2019 (based on 2018 Alberta sales volumes).\nUnder the direction of President & CEO Wayne Arsenault and CFO Don Sewell, the Corporation undertook an extensive evaluation of all aspects of Big Rock's business and financial results. The evaluation identified several cost-cutting measures that will allow the Corporation to remain competitive, support anticipated growth and drive long-term value for shareholders. These measures are being implemented to reduce the Corporation's operating expenses and focus spending on growth and profitability. Management is committed to maintaining and continuing to support its relationships with customers, consumers, employees, shareholders and other stakeholders, while returning the business t...