Commonwealth Brewery Limited (CBB) is hoping to boost revenue with a continued focus on its retail offerings and special promotions.
Perhaps the most noteworthy marketing effort has been Heineken's alliance with the James Bond franchise. In recent months, CBB has poured considerable funds and resources into marketing, branding and film screenings at the National Centre for the Performing Arts in anticipation of the latest Bond installment next month.
"The entire organization is pretty geared up and pushing momentum to the new James Bond movie. A lot of money on a global level has been invested and we'll play our role in that," according to Nico Pinotsis, president and managing director at CBB.
Bolstering its brands and retail offerings continues to be a major focus for the BISX-listed company.
According to its second quarter results, revenue improved 5.5 percent compared to the same period last year. Year-on-year revenue was up 7.4 percent.
Pinotsis declined to comment on the company's upcoming third quarter results. However, he told Guardian Business that CBB "is working on all retail aspects", including the closing and reopening of stores to determine the best spots for business.
In fact, Guardian Business can reveal that CBB is hoping to establish a new retail outlet at Lynden Pindling International Airport and take advantage of the $409 million redevelopment.
Also on the agenda are the products in the stores. Pinotsis said CBB is reevaluating its wine portfolio in particular, determining what is selling and what isn't to "get that business going".
"We have some ideas on that and in due course these ideas will be translated to the public," he added. "We need to work on our brands and look at our wine portfolio, and of course the overall retail experience."
The stores are also bringing in new in-store promotions related to the James Bond movie, including the chance to win watches and other prizes.
CBB continues to push its other brands, such as Kalik, by sponsoring a number of local events. Pinotsis noted that the brewery is now a sponsor of nearly every regatta in the country.
That fact has been a point of contention in recent months. Jimmy Sands, the owner of Bahamian Brewery & Beverage Company, told Guardian Business that CBB was using unfair business practices in its quest for market share. A so-called "brewery war" has emerged in terms of gaining client loyalty through sponsorships.
Sands has indeed emerged as a credible competitor through the launch of new products and the opening of new retail outlets in New Providence and beyond.
Meanwhile, managing operating expenses has remained an ongoing challenge for CBB.
In the second quarter, this segment increased 3.2 percent. Raw materials, consumables and services rose 3.5 percent. Personnel costs also went up from salary increases.
"We work continuously on operating expenses," Pinotsis told Guardian Business. "We look at where we can save money, but we are cautious not to cut too far to the bone. It's about finding balance between managing your costs and operating efficiently."
CBB shareholders have enjoyed a dividend yield of 6.53 percent of late, which is higher than the average rate on BISX of 4.10 percent. CBB's strong international backing and distribution rights in the country should make it a good play for Bahamian investors going forward.

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