The Good Drinks Australia Ltd (ASX: GDA) share price edged lower today following the company announcing a contract renewal. At close of trade today, the Good Drinks share price dipped 1.2% to 8 cents.
Based in Australia, Good Drinks is focused on the brewing, packaging, marketing and selling of beer, cider and other beverages.
What did Good Drinks announce?
According to its release, Good Drinks advised that it has secured a long-term contract extension to Optus Stadium. The operating company behind the venue, VenuesLive awarded Good Drinks a further 5-year term commencing 1 January 2023.
The agreement will see the company continue to provide its exclusive beer and cider to sports and entertainment attendees. The world-class stadium located in Perth, Western Australia, houses over 60,000 seats and is considered a major landmark.
Good Drinks highlighted that the stadium is the first in Australia to offer consumers different beer styles. The company's product range consists of Gage Roads, Atomic, Matso's, Alby, Hello Sunshine and San Miguel, which is sold across outlets within Optus Stadium.
Good Drinks also advised it will deliver volume rebates and sponsorship fees to VenuesLive in return.
What did management say?
Good Drinks managing director Mr John Hoedemaker commented on the extended partnership being another milestone reached for the company. He said:
Good Drinks is extremely proud to be awarded this contract extension. It's a ringing endorsement for the strength and quality of our brands and the success of our strong partnership with VenuesLive.
The partnership will continue to present an exciting and rare opportunity to achieve significant exposure for the Company's brands and reinforces the 'brand in hand' experience that we promote as part of our Good Drinks strategy.
About the Good Drinks share price
The Good Drinks share price is relatively flat when looking at its historical 12-month chart, up marginally 2.5%.
The company's shares hit a 52-week low of 3.5 cents in March due to the unforeseen COVID-19 environment. However, a quick rebound ensued with its shares surging during the following months.
Last Friday, the Good Drinks share price reached an all-time high of 8.3 cents, before some profit taking took hold. At the closing bell today, its shares were swapping hands for 8 cents apiece.
