Western Australian brewery, Gage Roads has been forced to throw out 140,000 cartons of beer, equating to a $1.12m loss in gross profit.
The company’s Palmyra plant experienced a processing fault recently which led to a compromise in the quality of the product, The West reports. The company said that it has since taken corrective action to ensure that such an event doesn’t occur in the future.
"Whilst the cause of the fault has been identified and corrective action is being taken, products manufactured during the period have not met the company's strict quality assurance standards and will not be released to market," Gage Roads said in a statement.
"This loss of gross profit will directly impact earnings in the second half of FY14."
John Hoedemaker, managing director of the brewery said that while the recent event will impact on profits, he is confident that the company will remain on track to achieve its financial future objectives.
"Our strong sales growth, customer relationships and long-term objectives of the company are on track and I remain committed to delivering on our four-year plan, including earnings growth through diversification and growth of revenue streams, improvement in manufacturing costs and taking advantage of the burgeoning craft beer market," he said.