ALM has struck an exclusive supply agreement with Broo Ltd, with the Australian beer to be distributed exclusively by ALM’s Queensland operation before being rolled out nationally to hotels, bottle shops and on-premise venues.
Broo went into a trading halt two days ahead of Friday’s announcement which coincided with the brewer announcing a revenue loss of 32 per cent.
In its ASX announcement, Broo said: “Broo has been working collaboratively with ALM to accelerate the growth of its beer products. ALM is working with the Company to distribute products across its retail and on-premise market, and as part of this the Company has launched a joint sales campaign with ALM across its extended network in Queensland.”
The deal is for six months with scope to extend to twelve.
Kent Grogan, Founder & CEO of Broo said: “We are delighted to join forces with ALM. Together, we are well positioned to offer customers a point of difference with ALM’s exclusive-to-indies approach, along with our unapologetic packaging to drive further brand awareness and category growth.”
Broo Beer positions itself as ‘100% Australian-owned’ and ‘a proud Australian in an increasingly crowded global market’. With its instantly recognisable roadside kangaroo signage branding, it is an unmistakably Australian and a very loud call out to ‘fair dinkum’ lovers of beer.
ALM’s General Manager of Owned & Exclusive Brands, Murray Riemann, said: “I think the market is appreciating a traditional, Aussie mainstream lager and we are really looking forward to seeing Broo’s success across the country as we continue to deliver exceptional quality, value and margin to retailers and consumers alike.”
In August last year, Broo Ltd struck a deal with Carlton & United Breweries for two of its brands to be made at the Yatala brewery in Queensland.
The deal with Broo Ltd is on track with ALM’s pursuit of private label opportunities. Last year Metcash (ALM’s parent company) acquired Kollaras & Co’s private label brands and the Liquor Centre in New Zealand. It was a key accelerator of the company’s private label growth strategy and included the ownership of brands such as Two Truths and Seahorse Bay, and the exclusive supply of imported brands such as Mr Boston Bourbon and Molly’s Irish Cream.
At the time, Liquor CEO Chris Baddock, said: “This acquisition is consistent with ALM’s purpose to champion successful Independents, which includes a strong focus on growing private label; ensuring that ALM has full control over this portfolio, which offers consumers great quality and value as well as growing margin for our retail partners.”