Asahi Beverages has announced the acquisition of leading South Australian gin distillery Never Never Distilling Co. From now on, all Never Never products will be sold through Asahi-owned Carlton & United Breweries.
“We are acquiring Never Never because we recognise Never Never’s incredible brand and success,” said Amanda Sellers, Asahi Beverages Group’s CEO.
“Combining Asahi’s reach with Never Never’s amazing portfolio, extensive spirits knowledge and capability will enhance the value proposition for our customers.”
The acquisition follows on from recent news of competitor, Lion, gaining 100% ownership of Four Pillars in July last year. Last month, Lion unveiled further details for its new Four Corners spirits business, which will include both Four Pillars and Vanguard Luxury Brands and will be led by General Manager Simon Edgar.
According to CEO Danny Celoni, today’s purchase will fill a gap in CUB’s current portfolio.
“Our two companies are a terrific fit; Never Never’s rapid growth has been driven by premium products, commitment to quality and strong hospitality offering – attributes we share,” he said.
“Adding a high-quality, Australian-made gin to our range plugs an important gap in our offering and complements our leading multi-beverage portfolio.”
The purchase also marks a major milestone for the McLaren Vale distillery, which, since launching in 2016, has continued to establish itself as a leading gin within Australia’s $3.8 billion premium spirits segment. In a recent Drinks Trade exclusive, Co-Founder Sean Baxter attributed Never Never’s success to its flavour concentration and obsession with quality.
“From the outset we’ve built high quality gin with a very clear understanding of its purpose and our customer,” he told Drinks Trade.
“When we first created our Triple Juniper Gin it was the only gin in the Australian market that was truly celebrating juniper in all its refined and concentrated glory. This certainly gave us an initial edge in the market because we were an Australian gin that was going after classic London Dry and doing a better job of it than all the big imported brands.”
Sean Baxter started Never Never with mates Tim Boast and George Georgiadis as a passion project in an Adelaide shed. Now, eight years later, Georgiadis believes partnering with CUB is the necessary next stage of Never Never’s growth.
“When we founded Never Never, our vision was to create exciting and innovative gin that competed with the biggest brands in Australia and pushed the boundaries of what’s possible,” he said.
“This partnership allows us to realise our vision by helping change, and also grow, Australia’s gin market, where around 80% of gin Australians drink is imported – despite Australia being home to some absolutely cracking gin brands.”
Asahi’s acquisition of Never Never has also occurred at a pivotal time for the industry, with gin consumption in Australia starting to slow, reflecting global trends.
“I think it’s inevitable that we will see the Australian industry slow down in a similar fashion to what’s happening in the UK,” said Sean Baxter to Drinks Trade.
“With new gin brands entering the market every month, supply is outstripping demand and with added financial pressures, it’s getting harder and harder to make an impact in retail.
“To remain competitive in the very busy Australian gin market you need to strive to be innovative and create spirit that sets you apart from other competitors out there.
“Never Never has always been a brand that seeks to constantly innovate and this is fundamental to not only our brand success but the growth of the category as a whole.”
Partnering with Asahi will provide Never Never with the support it needs to scale up during difficult trading conditions without risking financial or product-related complications.
“With their consumer brand-expertise and deep customer relationships, Asahi will help grow Never Never in a way which we’ve always aspired to. Our values have been crucial in building our brand, and align incredibly strongly with the values and culture of Asahi Beverages,” said Georgiadis.
“We can’t wait to start offering this product to our customers and through our distribution network to help this internationally-recognised Aussie gin achieve the scale it deserves,” added Celoni.
